Just a few months ago, we were hearing how the Kona condo market was behaving sluggishly. Not anymore. The condo market, along with homes on the East side of the island are cooking. The West Hawaii real estate market, in general, has heated up across the board.
A year ago, the condo market produced just $6.5 million in sales volume for North Kona.. Last month, it jumped to $15.2 million and then in June, it jumped up to $30.2 million. The median price a year ago for condos, according to the Hawaii MLS was $247,000 and each listing was fetching about 94.7% of listing price. Last month, the median price jumped to $325,000 and sellers were receiving 99.16% of the listing price. THAT is a hot market.
In comparison, the average sold price was 94.2% of the current list price for single family houses in West Hawaii whose median price for June 2017 was $570,000, a slight dip from $590k a month earlier. The average list vs sold price for single family homes in North Kona was 87.13% a year ago.
As stated in a Big Island News Now post about the Big Island housing prices nearing record high this week, Puna has seen an almost 20% increase number of sales year over year, with a 25% sales price increase from $192,00 to $217,000 driven by people looking for deals on the Big Island.
North Kohala, has seen a 11% increase in sales price year over year from $585,000 in 2016 to $650,000 in 2017, while South Kohala saw a 7.45% increase year over year from $585,000 to $595,000. In North Kona, the median price of a single family home was $590,000 in 2016, and now the median price is $651,500, a 10.42% increase.
Of course, this is not the best news for anyone trying to move to Kona right now, which along with the Kohala Coast, has the highest prices for homes on the island, but as they say in most hot markets across the US, housing construction has not kept up with demand since the recession. In Kona, there is just not much new construction for homes going on, so unless the entire economy comes down, housing prices will most likely continue to be high due to supply and demand.
For more commentary on the market, check out the housing update by LUVA Real Estate.