Let’s pick up where we stopped with our last post on the building or ‘overbuilding’ boom on the Kohala Coast and on Hawaii Big Island. Real Estate market in Hawaii and on the Mainland has been, and still is, an ever-discussed topic all through the year 2006. The so long predicted bursting of the housing bubble seemed to have finally happened or was it just stabilizing of the market or correction of overpricing, as some real estate analysts pointed out?
In January 2006 the available inventory island-wide began to increase as house sale prices declined. Interest rates remained stable, which was encouraging to buyers. The housing market showed a totally different picture this year than it showed in 2005. What will the new year 2007 bring for the Big Island real estate market?
The Hawaii Housing Bubble blog with Oahu and Mainland house sale stats offers some interesting insight into real estate ‘bubble’ facts in Hawaii and on the Mainland. If you are interested in buying a house in Hawaii, this information might be worthwhile reading. The more you read, the more you know. The decision-making is still up to you, just like in the stock market. Not all the predictions by the top analysts are the right ones. Some basic trends help though for making your own house buying or selling conclusions.
Here are a few stats backing the current real estate market on the Big Island:
The Kona Coast has 429 listings with a median asking price of $729,000, with 28 sales last month and a median price of $620,000.
Puna on Big Island’s East Coast currently has 611 active listings. Vacant lot sales and prices in East Hawaii have plunged steadily since November of 2005, according to information compiled from the Hawaii Information Service. Vacant land was a hot commodity last year as investors bought lots in hopes of flipping them for a good profit. But the slowing market made speculators move on, at least for the moment.
With an average Hilo home going for $350,000, buyers last month were paying $17,000 less than they were in November of 2005, with a 20 percent drop in sales volume. Hilo had 34 sales in November 2005 and 27 sales in November 2006.
Last but not least, high end homes over 1 million dollars on the Kohala Coast, such as Kohala Ranch, Kohala by the Sea and Kohala Estates are still at high demand. However, asking and selling prices for the medium range are falling in the Waimea/Kamuela area on the Kohala Coast, especially so in that odd area between worker housing and upper middle class properties $500K to $900K.
All the above stats are once again proving that it’s a buyer’s market, as we ended our most recent post. Some buyers are waiting for the market to swing even further their way in what experts have called a "market correction" after years of brisk sales and high prices, but remember ‘there is no place like Hawaii’ and properties on these islands are not unlimited!
Merry Christmas and aloha, Pua Kohala Coast Vacation Rental Guide