Kona Kohala Blog

June goes out with a fizzle, much like most of this year.  The number of sales continues its downward trend compared to last year and correspondingly, median prices continue down . . . or do they?  Basic economics would tell us yes, increased supply, reduced demand, prices go down, right?

In North Kona, yes.  The median price of a Single Family Residence (SFR) is down 7.3% year to date compared to 2006.  Condo prices are down 8.47% for the same time period.  South Kohala obviously, didn't pass econ 101; their SFR median price is up 4.67% and their condo median price is up a whopping 25.09%.

Now, before people begin rewriting text books on economics, let's look at what's really happening here.  West Hawaii is a very small market compared to Oahu or most market areas on the mainland.  A single large sale can skew statistics when there are only say, a half a dozen sales to look at.  In South Kohala, there have been numerous sales of million dollar plus properties in the resort areas which are a complete contradiction to what's happening in Waikoloa Village.

In general, prices are holding well considering the steady decline in the number of sales, island wide.  An interesting anomoly is the sales volume in the two districts.  South Kohala SFR volume is up 5.7% to just over $144M year to date while the condos are down 38.5% to $93.3M.  In North Kona, the SFR volume is down 18.9% with sales of $192.1M and condo sales are down a whopping 46.26% to a mere $58.9M in sales compared to last year at $109.6M.  Median price for a condo in North Kona is $389K.

Just like real estate is a local phenomenon, median pricing is as well.  We need to look at each price range to see where things are moving and where things are sitting.  You can subscribe to our free newsletter by emailing me at ferrari.realestate@gmail.com and I'll add you to the list.  Here, you'll get the details of our market and some general interest information as well.  aloha