Kona Kohala Blog

It appears that prices may be stabilizing on Hawaii's west coast, at least in North Kona and South Kohala.  Sales activity is continuing to climb but median prices are slowing their decline.

We've been seeing, on average, 20% per year median price declines but for the last two months that percentage has slowed.  We're now seeing closer to 10% and it seems to be moving even closer to zero as many of the really good deals have been purchased by eager bargain shoppers.

The number of sales is still rising rapidly which only reinforces a seller's belief that the market is turning around and they can raise prices.  The reality check comes when the next foreclosure pops up and it's 10% under the price set by the person who doesn't have to sell but is testing the waters.

The real estate market is not yet in recover.  Nationally, sales are down by 30% in May and we're not that far off that market.  One big difference for us right now is that many people who've held onto their money over the past 5 years are now popping in to pick off the under priced homes and condos on the market.

Don't look for any big or sustainable change until the employment figures head for positive territory.