Kona Kohala Blog

Prices continue to decline in all categories in North Kona and South Kohala with the exception of Single Family Residences (SFR's) in North Kona.  For some reason, SFR's here are going against the grain with year to date median prices up 3.85% and March prices, so far, up 4.06%.  SFR's prices in South Kohala are still declining as are condos in both South Kohala and North Kona.

Sales activity is slowing which is to be expected in our "new economy."  Normally this would be a busy time with all the snow birds here for winter buying up condos but not now.  Sales are juxtaposed with mainland consumer attitudes and people are hesitant to spend money.  Consumer sentiment has been down regularly in polls showing people aren't all that excited about the direction the economy is headed.  Added to that are the predictions from the so-called experts, that housing prices are expected to decline another 10% to 15% by the end of summer.  If that's the case, who's going to buy into a negative equity situation?

If prices of SFR's in North Kona are a precursor of things to come, we may have hit bottom in Hawaii.  If you're on my newsletter mailing list, you already know that Hawaii doesn't always follow the rest of the country.

As boomers retire in ever larger numbers every day, many of them are tired of long cold winters and sky high heating prices.  In Hawaii that's not a problem.  Driving, too, has gotten very expensive but living on an island you just don't drive that much so there's another saving.  Those two alone will go a long way towards offsetting any additional costs incurred by living in Hawaii.  Food and fuel are the two wild cards in the inflation equation and the sectors that are going through the roof.

Food in Hawaii is no longer that much higher than on the mainland.  The big lot stores along with increased competition among the super markets has helped push food prices down.  Shopping at farmer's market has become popular lately.  So popular that new ones are springing up here in Kona and north in South Kohala.  There's a weekly market in the Queen's Marketplace at the Waikoloa Beach Resort and another recently opened at the Keauhou Beach Hotel on Wednesdays.

With food and fuel costs under control here the over all costs fall in line with most areas of the mainland.  Housing is also equivalent to many mainland cities as is clothing and household goods.  Couple all that with a year around average temperature of 77 degrees and sunny days about 350 days per year and west Hawaii is looking good, very good.

You can sign up for my weekly, usually, newsletter by emailing me.  If you're concerned about your privacy, please click here for my Privacy Policy.  Your information never leaves my office and you can cancel anytime by just typing CANCEL in the subject line.  The newsletter is designed to give you information on real estate issues in west Hawaii along with statistics and comments on the market.  You'll also find information on current items of interest, news, dining and anything else that pops up as unusual on our placid island.

If you're interested in a particular type of property you can send me the parameters and I can put you on an update list that will send you information on those types of properties right from our MLS data base with updates any time there is a change.

This is an exciting and dynamic time for real estate.  It's a great time to be looking for your retirement home, a second home or an investment property.  Prices are down, interest rates remain low for now and there is a good selection to choose from.  It's just like sale shopping and who doesn't like sale shopping?