Kona Kohala Blog

It appears that there is less change in our market place, fewer declines in the number of sales and not quite as much of a drop in prices as we've been seeing.  Our market is approaching stability . . . but for how long?

Many "experts" today are saying we're on the road to recovery but is it only a false start?  Property values are still down in Hawaii but not as much as they were.  Condo and Single Family Residence (SFR) median prices are in the $200's and $400's respectively for North Kona.  Even South Kohala, our condo capital due to the huge number of vacation rental properties, is seeing a continuing decline in property prices.

This is great news if you're a buyer who's been sitting on the fence and unable to decide if now is the right time.  Interest rates have taken another plunge after an attempt to stay above 5% last week.  Bank of Hawaii is offering a 4.5% 30 year fixed rate loan with 2.625 points.  A 15 year fixed rate with the same points will get you 4.0%.  That is cheap money in any market.  Jumbo loans are 5.25% with 2.125 points and that too is a great rate.

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