Kona Kohala Blog

While sales and median price are off in most districts on Hawaii Island, South Kohala seems to have not gotten the word that we're in a recession or pulling out of a recession and still having real estate problems.  The number of sales of Single Family Residences (SFR's) in South Kohala has risen by 22.9% over last year at this time.  Condo sales there are up 63.3% over last year.

In North Kona where we play closer to the rules, sales of SFR's are down <14.6%> and condos are down <9.0%>.  Not wanting to totally play by the rules, median price for a SFR in North Kona is up 2.9% year to date.  North Kona condos are down <31.1%> following nation wide trends.  South Kohala median price for SFR's is also down <10.4%> and condos there are down <8.4%>.

This works out to the price of a SFR in North Kona is $410,000, a condo is $174,900.  That makes condo buying a very doable thing today.  At the other end of the spectrum, South Kohala condo median price is $367,000, in line with the higher end resort pricing found around the world in world class resorts.  A SFR in South Kohala is more reasonable at $322,500.

The economy on the mainland is breaking new ground as gas prices work their way towards the stratosphere.  People are driving less but unlike similar gas trends in the past, people are spending more, just not on gas.  People are spending more on clothes even taking into account that prices are much higher than last year.  It seems that discretionary spending is on the rise as commuters settle for trains and buses and leave the higher priced rides in the garage.

If those two areas of spending balance out then there will still be those who are looking at property, either for a second/retirement home or as an investment.  Some of the big name prognosticators are suggesting cash as the current best thing to do with your money.  Owning real estate is like holding cash, it's just not as liquid as green backs in your pocket and that may be a good thing.  Living in a shopping deprived society it's become too easy to spend, spend, spend.  Maybe putting a couple hundred thousand on ice as in locked up in a property that will appreciate over time, is a safe bet.  If you don't have the cash, leveraging a couple hundred thousand with 20% down can also make good sense.  Just make sure you can afford the payment no matter what happens in your personal life or the stock market for that matter.  Live long and prosper.