If potential homebuyers saw the year over year sales statistics from October 2018 to October 2019, they would be very surprised to see that home sales had climbed 41% from last October. If they were unfamiliar with the recent volcanic events on the island, which ended in early August 2018, they may think that the housing market was on fire. Well, it is not on fire, but it is a market with high demand, and lack of inventory.
We are not alone. Nearly all—93%—of the largest metros in the U.S. saw home prices rise in the third quarter over the past year. A shortage of homes for sale, combined with higher demand, continues to push home prices higher, according to the latest quarterly report from the National Association of REALTORS®, released at the NAR Convention and Expo on November 7, 2019.
“Incremental price increases are to be expected, but the housing market has been seeing re-acceleration in home prices as more buyers want to take on lower interest rates in the midst of insufficient supply,” says Lawrence Yun, NAR’s chief economist. “Unfortunately, income and wages are not rising as fast and will make it difficult to buy once rates rise.”
For single family homes in North Kona, 41 homes sold in October 2019, compared to 29 in October 2018, a 41% increase and for the historical record, that is compared to 53 homes sold in October 2017. 38 condos changed hands last month compared to 43 in 2018 and 39 in 2017.
The median price of a single family home in North Kona is $655,000, a12.93% gain from $580,000 in 2018 and almost the same as 2019 with $645,000 in 2017. The median price of the condominiums in North Kona in October was $350,000 as 12.9% increase from 2018 when the prices were $310,000 and lower than they were in 2017 when they hit $390,000. Another look into the market is year to date figures which state that the year to date median price for a single family home is $649,000 and condos are $345,000.
According to real time real estate data reports from Altos Research, the single family and condo market remains in a relative stasis in terms of sales to inventory. Prices have not been moving higher for several weeks. However, inventory is sufficiently low to keep Kailua Kona in a seller’s market.
South Kohala single family home prices have remained flat year over year at $580,000 and condo prices year to date are $345,000 a 6.15% increase from last October.
In general, sales statistics around the island show a decrease, but an uptick in pricing which is mostly attributed to lack of inventory.
For the full October statistics, click on link below. October2019Stats.pdf