Kona Kohala Blog

We're at the half way point of the month as we approach the end of the year.  As one of our great presidents once asked, "Are you better off today than you were a year ago?"  I guess the answer will depend on whether you're employed or not.

Unemployment is still hanging at 10%, 7.2 million people out of work.  At least that's the number still in the system.  Total unemployed is rumored to be closer to 16% counting those who no longer apply for unemployment and have given up finding work.  It doesn't mean they aren't working but chances are they're working part time with no benefits and getting paid under the table.

Here, in Hawaii, the cash labor market has always been huge but I suspect that it's grown in these tough times.  As taxes on just about everything go up more people find ways of showing less income to the tax collectors.  I had a $14 increase in my cell bill last month so I called AT&T to find out why.  It seems there are some new "surcharges" being added by just about every level of government that can get its hands on our cell phone bills.

The National Home Builders Association reported that there was a record number of housing starts last month.  Much of it was in anticipation of the $8,000 First Time Homebuyers Tax Credit.  The problem may be that we've pretty much run out of first time home buyers.  The first round of tax credits earlier this year drew plenty of takers but with unemployment where it is, there may not be that many more out there that can qualify under the governments new stricter rules.

The Consumer Price Index is up 1.8% but that includes food and energy.  If you take those two out the change was nil, nada.  Retailers are unable to raise their prices because of the overall economy.  Once again, we've run out of people to buy things, even little things.

Year to Date for our housing market shows declines across the board with one exception when we consider both the number of sales this year and the median price.  Only North Kona sales are on the positive side with a 10.61% increase in the number of sales this year to date.  The median price for Single Family Residences (SFR's) is down <21.59%> and condos are down <22.39%>.  Condo sales are down <15.3%> in North Kona.

In South Kohala, year to date, the number of sales for SFR's are down just <1.23%> while condos have dropped <24.64%>.  The median price for the year has declined <18.84%> for SFR's and <24.64%|> for condos in South Kohala.

I don't expect to see any changes in these numbers or trends until we see a positive change in employment.  Those who were going to spend have spent with a few more trickling in as prices drop to new lows.  At some point almost everyone finds some deal too good to pass up.

This morning I saw a bumper sticker that told me that no matter how bad the economy gets, so how there's always humor to be found.  I was behind a beater Honda with parts falling off and a body consumed by rust with a sticker that said, "I survived the Cash for Clunkers."  Ah, the American spirit.