The real estate market in West Hawaii for well priced single family homes is hot. Twenty five homes in North Kona from June 1-30, 2020 spent less than 16 days on the market, while another 9 were on the market for less than 30 days. Even with the pandemic, the demand for homes is being fueled by record low interest rates and a continued pent up demand for homes.
However, the condo market has shown evidence of slowing. Available condos for sale are up while pending sales are down within the past two weeks. According to real time real estate data firm, Altos Research, we have a sellers market for single family homes in Kona and we have crossed into a buyers market for condos.
Data from the Hawaii Information Service, states that the number of sales year over year for single family homes was 54 in June 2019 and 44 in June 2020, a drop of 18.5%. Year to date, single family home sales have dropped 16.67% compared to last year, while condos have dropped 35.89% from 248 sales in June 2019 to only 159 last month.
In South Kohala, sales are down 31% year over year for single family homes with prices rising 43% from $522,500 in June 2019 to $750,000 last month. Year to date, prices have risen only 4.44%, so the spike in home prices could be high end home buyers were out in force in June. With only 11 condos sold in June, the median price spiked up 54.62% from $465,000 to $719,000 year over year.
Interesting to note, the sales volume for single family homes rose 39% year over year, while condo sales volume dropped 37% year over year.
From what I am seeing from my Kona Newbie group and my “365Kona’s I’m Moving to the Big Island and Buying a Home” group, there is A LOT of interest from mainland homebuyers right now with Realtors reporting being extremely busy and closing transactions on homes with buyers purchasing sight unseen, multiple offers and days on market dropping.
If you would like to be connected to a trusted Realtor or mortgage professional in our 365Kona network to receive available listings, talk about the market, financing and more, please contact me! My husband and I offer a complimentary real estate match making service to help you avoid making costly mistakes as you navigate purchasing a home in Hawaii! Julie@Ziemelis.com