Kona Kohala Blog

It's a time of celebration for residents of the west side of Hawaii Island as the goddess Pele moves her base of operations and ceases her 25 year long volcanic emission.  Perhaps she's moved south to Loihi, the new sea mount erupting 26 miles off shore or may be she's just taking a break.  It's hard to tell with volcanoes.

North Kona real estate is moving much like Pele's lava flows, slowly but steady.  Our condo inventory continues to grow with over 400 condos for sale in North Kona.  Waikoloa Village has over 50 condos for sale and only 2 in escrow.  North Kona has just over 30 condos in escrow which leaves a large inventory for buyers to choose from.  With recent price reductions in both Kona and Waikoloa, now is a good time to consider condo living or condos as an investment.

June is turning out to be one of the slowest months in real estate in the last 8 years.  In South Kohala, the number of sales of Single Family Residences (SFR's) are down <41.67%> compared to last June and down <27.93%> year to date.  Condos are down <53.13%> and <41.77%> year to date.

In North Kona, the number of SFR sales is down<46.81%> for June and <21.38> year to date.  Condos are faring a little worse than up north with the number of sales for June down <60.98%> and <41.03%> year to date.

Median prices continue to make their corrections downward in North Kona with year to date figures of <6.62%> for SFR's and <8.47%> for condos.  South Kohala is bucking the island wide trend with median price increases of 4.57% for SFR's and 23.24% for condos.  Much of this can be attributed to the Mauna Kea and Mauna Lani increases in home and condo sales of higher end properties.

The outlook for interest rates is that they will hold for the remainder of the year.  With the exception of fuel and housing costs, inflation looks to be under control.  Even housing costs are coming off their highs which takes even more pressure off inflation.

Look for a strong market in the fall as people become more comfortable with their personal financial situations and the draw of warm climates comes back into favor.  aloha 

Another gloriously clear day in Kailua Kona and along the entire Kona Coast from Discovery Harbour to Kohala.  The fire goddess Pele continues to favor us with no volcanic activity from Kilauea which means clear blue skies for the Kona side.

Market prices continue to correct for condos and Single Family Residences (SFR's) with land soon to follow.  Land has been at a premium since so little was available.  Now, those who were building on vacant land have decided it's time to sell the land since the housing market is so slow.  This had brought a lot of lots on the market, some with good pricing.  Now may be the time to consider buying a lot and building.

Fractional Ownership.  This is something new that's taking hold on the mainland in resort markets and is just beginning in Hawaii.  Fractionals may have up to 6 owners, each holding title and using the property for 60 days of the year.  The process, being new, is a bit complicated but will simplify once more title companies and lenders come on board with the idea.

Fractional is different than time share in many ways, perhaps the biggest being that for the time you have use of the property, you can vacation rent it or use it in any way you choose.  Fractional ownership allows you to buy into a luxury or ocean front property for a whole lot less than you may be willing to pay, especially considering that you're only going to be here a short time each year.

aloha