Kona Kohala Blog

The latest twist on the real estate market in North Kona and South Kohala is a slowing number of new listings and a decrease in the number of sales.  We had been watching sales grow over the last nearly two years now in both North Kona and South Kohala but suddenly, in the last month, both sales and listings have slowed.

Two weeks ago there were 303 active listings in North Kona for Single Family Residences (SFR's) and today we are down to 284, a drop of 19 homes.  It's not a huge number but two things, it goes against the trends we've been seeing and second, as a percentage it's about 7%, a statistically significant number.

Possible explanations are a slow down in foreclosures hitting the market and/or fewer home owners wanting to fight the glut of foreclosures.  In either case it hasn't effected the supply we currently have.  Remember a balanced market is thought to be a 6 month inventory of homes for sale; today we have a 9.6 month inventory.  This means it's still a buyer's market but not by quite as much as we've been seeing.

This may be a temporary slip or a sign of things to come.  The biggest problem for most potential buyers is the uncertainty in the market today.  Who wants to buy a property only to have it decline in value the next day?  If you said no one, you were correct.

A couple of things to think about when considering buying.  First, why are you buying?  If you're buying a new home and you're going to be there for 5 to 7 years then appreciation shouldn't be a concern.  Prices will go up again, it's just wondering when that throws some people.  Also, you're buying a place to live, a home.  When buying, you don't have to worry about a landlord selling your home or having to ask to paint a wall or make a change, there's a certain security in owning that you don't have as a renter.  You're going to have to pay to live somewhere so why not have it be in your own home?  At today's prices and interest rates you may find that buying is comparable to renting when it comes to writing out the monthly check.

If you're an investor, the last two, cost of the property and interest rates, are both in your favor.  Many investors are finding that for the first time in a long time, owning in Hawaii can actually improve your bottom line, you're going to be in the black each month and that's without counting the tax benefits.

So, there may be a better time to buy in the near future (or not) but now is an equally good time if you look at my line of reasoning.  Whatever your thinking is, it's a good time to consider buying in either North Kona or South Kohala.  Both are beautiful spots and have wonderful year around weather.  Call me for more information, it's free and there's never any obligation.