Kona Kohala Blog

Since Pele has ceased her eruptions the more normal weather patterns have reemerged along the Kona coast.  This means clouds in the late evening followed by night time showers.  By morning it's usually clearing and we have a nice sunny day again.  Truly paradise.

Real estate continues to trudge along.  To date in North Kona, just over $3M in condo sales and $11M in Single Family Residencial sales have closed escrow.  In South Kohala there's been just over $2M in condo sales and about $10.5M in residential sales.

The Fed chief made a disparaging comment yesterday about the housing industry as a whole.  He said the slow down should continue into the foreseeable future.  Since way too many people hang on his every word, buyers will continue to hang on the sidelines waiting to find the bottom of the market before venturing in.

The problem with that thinking is that once again, the bottom will come and go and those who wait for all knowing advice from some financial guru suddenly wakes up only to realize the market started up some time ago and they got caught sitting on the hind end. . .  again.

Real estate is a long term investment i.e., there is no bad time to buy.  You're not buying real estate for a quick flip and easy money.  Real estate in a long term investment.  Held for 5 to 10 years, real estate has always shown a positive return.  You can't time the real estate market any more than you can time the stock market so if you're in a position to buy, buy.