Kona Kohala Blog

Contrary to trends elsewhere, West Hawaii, especially North Kona and South Kohala continue to show improvement in their real estate sales.  Sales are up in all categories with condos in South Kohala jumping over 117% over last year's numbers.

In North Kona, the median price of a Single Family Residence is going against all trends pretty much every where by showing an increase of 4.5% over the same time last year.  There is a lot of activity in North Kona and South Kohala and good properties are going fast.

The number of foreclosure is slowing down now with only 92 reported in February.  Throughout the entire Hawaii Island chain, foreclosures are declining.  As the number of foreclosures drops we can expect to see prices level off and eventually begin to rise again although that may not be for a couple of years.

Interest rates continue to amaze.  Rates this week in West Hawaii have dropped again so that it only takes 0.125 points to get a 5% fixed rate 30 year mortgage at Bank of Hawaii.  By paying a bit more up front you can drop your rate to the low 4% range.  If you're looking for a fixer upper and you get a great deal and plan on selling within the first year, you can get an Adjustable Rate Mortgage, ARM, for close to 2%.  If nothing else it might be fun to get one just so some day you can tell your grandkids about such a thing.  They won't believe you, of course, when they're looking at a Jimmy Carter 19% loan and think you fell off the old rocking chair one too many times.

That's it for today.  Don't forget to sign up for my weekly newsletter that comes out most Fridays.  Today's is full of information on properties in North Kona and South Kohala, more in interest rates and some light statistics to keep you informed on the markets direction.