Kona Kohala Blog

In both North Kona and South Kohala, the median price of Single Family Residences (SFR's) and condos continues it's slide south.  SFR's in North Kona are at $385,000, down <14.25%> compared to the same time last year while condos are at $251,750, a <13.19%> drop from '09.

In South Kohala the SFR's median price is $360,000 which is a small <7.69%> drop compared to the <20%> drops we've been seeing over the last few years.  Condos are down <20.08%> to $479,500.

As of today there are 365 SFR's and 287 condos for sale in North Kona and 195 SFR's and 255 condos for sale in South Kohala.  The number of sales are on the rise as people have begun taking advantage of the lower prices.  North Kona SFR's are up 52.31% and condos there are up a whopping 90.91% compared to 2009.  South Kohala condo sales are up 100%, however, SFR sales there are down <12.77%>.

All in all we're seeing a lot more people coming to buy rather than just to look which is what we saw last year.  Since the much touted jobless recovery is impossible to sustain, prices should remain low for quite a while longer.  The one big fear is that with the government printing money faster than the makers of Monopoly then pumping it back into the hands of those who have never learned to save, we will see inflation rear it's ugly head maybe as soon as Q4 2010.  When that happens we may see the buying activity slow as higher inflation translates to less buying power or, we may see prices take another turn down.

Without jobs people can't buy the everyday gadgets and trinkets they're used to having which will impact small businesses.  Small businesses make up almost 50% of the GDP so watch that tumble.  Jobless people may lose their homes but they still have to live somewhere.  Does that mean more rental properties, investment opportunities or are we going to get slapped around by liberal law makers like those in Los Angeles?  There, they are talking about passing rent control laws that will freeze rents.  That could end up backfiring as land lords get out of the business and the same people that can't make mortgage payments now can't make rent payments; there goes the property tax income, a major source of income for the local governments.  This administration really needs to focus on jobs and small business not health care, financial reform and having astronauts landing on Mars.  Mars is like a common person's luxury vacation, you do that when you're flush, not when you're a many trillion in debt and it's rising.

Hopefully such folly won't be permitted to be enacted even in LaLa-land.  One very good thing about this current administration is that it has gotten people off their bottoms.  The silent majority has been awakened and things are about to change.  As people begin to appreciate the rewards of conservative government, how jobs are created and taxes come down, they may vote in some of those who will correct this death spiral we're in.  Let's hope our government comes to it's senses before it's too late.

In the mean time, it's a great opportunity for those who were wise enough to save their money and not get greedy using their homes as ATM machines.  It's a great time to buy that dream home in Hawaii.

Call me at 808-896-0661 or email me and let's get started winnowing through the multitude of active listings and find just the right home for you.  aloha