Kona Kohala Blog

February like Valentine's Day is a batch of mixed emotions or in this case, mixed signals.  We've been watching sales go up and prices come down for some time now.  February is pretty much the same with a small twist just to keep it interesting.

In South Kohala, the Waikoloa Beach Resort and Mauna Lani Resort areas as well as Waikoloa Village there has been positive increases in sales for February and this year to date.  Single Family Residence (SFR) sales are up 100% going from 8 closed sales to 16.  Condos are up 136.4% going from 11 sold at this time last year to 26 sold in February of 2011.  Year to Date figures show sales up 57.9% for SFR's and 116.7% for Condos.

South Kohala median prices are staying with the trend.  The price of a SFR is down <7%> from $355K to $330K this February compared to last.  Condos are down <17.5%> going from $445K to $367K. Year to Date SFR's are down <5.7%> and condo prices are down <14.3%>.

In North Kona sales of SFR's have gone up 61.9% with 34 sales this February compared to 21 last February.  Condos sales are down, the twist, by <16.7%> with just 20 sold this year and 24 being sold last year.  Year to date is more in line with the trend but just barely with SFR sales rising 22.7% and condos eeking out a small increase of only 2.2%.

North Kona median prices are also contradicting the trend with SFR's actually rising 3.1% in value from $417K to $430K.  Condos though, dropped <42%> from $257K to $149K.  Year to Date, North Kona shows SFR's rising 5.2% and condos dropping <31.4%>.

It appears that SFR's in North Kona are beginning to gain value.  Sales remain strong being up almost 62% in spite of rising prices.  It may be that the bottom was hit a month or so ago and now we're seeing prices start up.  This trend may get some of the fence sitters off the fence and into their loan officers office.  The lower priced homes will be snapped up fast so if you're one who has been looking and waiting, wait no more.

Condos in North Kona and South Kohala may continue their slide down but those too will level off soon.  Prices can only go so low before people start taking property off the market.  We'll then be left with only distressed properties and with a shortage of them, prices will stabilize anyway.  Now is the time if you're considering buying in West Hawaii.