If you are thinking about moving to the Big Island of Hawaii/West Hawaii, you may want to know about the current real estate market. I wrote this West Hawaii housing market report for my mortgage client using the real estate statistics provided by the regional MLS.
North Kona residential sales were about the same as they were this time last year with 39 transactions in February 2013 vs 40 in February 2014. However, 21 condos in Kailua Kona left the market in February last year and 30 sold this year with a median price of $220,000 in February 2014, a 7.66% increase year over year. (Personally, in our condo complex in Keauhou, condos are selling within weeks of being placed on the market and we are happy to see prices increasing!)
Inventory continues to decline, meaning serious buyers are willing to work with the seller on negotiating price. Low ball offers on well priced homes, once common in the recession, are not meeting with high success, especially at this time of year, when buyers are here from the mainland.
Median home prices increased 5.53% from $452,000 to $477,000 in North Kona year over year and increased from $269,000 in South Kona to $430,000, a 59% increase from February 2013 to 2014.
In North Kohala, prices jumped 41% from $361,000 to $440,000 and South Kohala saw a 21.88% increase year over year from $380,000 to $441,000.
“The housing market is on fire in California right now and that tends to flow to Kona. We are still seeing quite a few cash buyers and investors are still out looking for good deals”, said Lance Owens, Realtor with LUVA Real Estate.
“Mortgage rates are holding steady, which is great for first time homebuyers. However, credit remains tight, so finding out what you can qualify for is an important first step to buying a home on the Big Island. If homebuyers want to see what they can qualify for and see the variety of first time buyer programs available to them, we invite them to come in and discuss their options,” stated Ron Sato, Point Financial in Kona.
Not too sure where you want to live, which neighborhood, what elevation? Call Lance and he can help you with answers to your real estate questions!