Kona Kohala Blog

Prices continue to decline in North Kona and South Kohala.  In North Kona the median prices are declining much less than the 20% we were experiencing, now down only about 4% for both Single Family Residences (SFR's) and condos.  In South Kohala, the full on slide continues unabated at over 30% for SFR's.

The number of sales is still climbing, as has been the case.  Most of what is selling is still lower end properties consisting of foreclosures and short sales.  Of the 19 SFR's sold in North Kona so far this month, 14 of them have sold for less than $500K; keeping in mind that under $500K is affordable here.

Of the 14 condos that have sold, 12 of them sold for less than $400K.  It seems that as long as there are lower priced properties out there, buyer will show up.  There is no sign of the number of foreclosures and short sales slowing.  We've been warned by Bank of America that the number will increase in the first quarter of this year.

It's a good thing the president is focusing on jobs now rather than health care.  Jobs are what is going to pull this country out of the recession we're in.  Health care needs work, no doubt there, but putting people back to work is by far the most important work for the president and the congress.  Unshackling the hands of business by reducing taxes would be a good first step; we have one of the highest corporate taxes in the world right now.

There's an experiment going on in Oregon that will show us the good or bad of raising corporate taxes, again.  Oregon wants to tax the big hitters more.  Phil Knight, founder of Nike and a long time supporter of the state is asking them not to.  This is a time to be cutting taxes not looking at band aid fixes, short term income that could result in the biggest tax payers leaving the state for greener ground.

All legislators, state and federal, should be required to read Atlas Shrugged by Ayn Rand as one of the insights into the economy.  It's business, both big and small, that can save us not new taxes and more government employees.  Being from Oregon originally means I'd like to see them thrive there but taxing is not the way to do it.