Kona Kohala Blog

What a time to be a buyer.  We have a large inventory of Single Family Residences (SFR's), condos and land to choose from.  Interest rates are staying at historic lows and prices are down to where they were in 2003.

Sales activity is slow, very slow meaning most sellers are anxious to see a qualified buyer show interest.  Sellers are willing to negotiate and some are willing to help buyers by carrying part of the note or even complete owner financing.

In North Kohala there has only been one SFR sold this month compared to 5 last April.  In South Kohala the number of sales of SFR's has gone from 12 last year to 5 this year and in North Kona the number has gone from 33 in 2008 to 12 in 2009.  Condo sales in South Kohala are down 78.95% from 19 to 4.  North Kona is no better having gone from 20 to 4 this year which is an 80% drop in the number of sales.

All in all this a probably the best buyer's market we've seen in a very long time.  It may stay this way for a while the way the administration continues to botch housing recovery efforts.  The only thing that seems to be working right is the First Time Homebuyers Tax Credit.  Large numbers of first timers or those who haven't owned in three years, are rushing to apply according to the IRS.  You do have to buy before November 30, 2009 in order to qualify for the $8,000 credit which unlike the earlier $7,500 loan, does not have to be repaid.  At least they seem to have gotten one out of about 6 plans right.

One they don't have right at the local, state or federal level are the new "fees" we're getting in lieu of new taxes.  It seems that all governments at all levels have trouble living within a budget and a fixed income.  We, the people, have to do just that so why not those who "serve" us?  Or do they?  It seems that they only serve themselves, how sad is that?