Number of Sales Drop as Prices Increase In West Hawaii
As the West Hawaii real estate industry has buckled down to deal with the COVID-19 crisis, the market has seen a marked drop in inventory and sales, but yet, the median price of single family homes has increased, as homes over $700,000 have outsold available lower priced inventory.
Information from the locally sourced, “Griggs Report” states that there is low inventory and low sales numbers in the price range below $700,000. The big year over year change is the increase in sales over $700,000, where the percentage has jumped from 41% to 51%.
Island wide, the number of sales have dropped in double digits in all communities.
Number of Sales
According to statistics from Hawaii Information Service for North Kona, sales of single family homes are down 56.67% from 60 homes sold in 2019 to 26 sold in 2020. Condos are down 69.77% year over year with 43 condos sold in May 2019 vs just 13 in May 2020.
In South Kohala, residential sales are down 83% year over year where 36 homes changed hands in 2019 and only 6 closed escrow in 2020 in May. Condos sales dropped 66% month over month from 30 sales in 2019 to 10 in 2020.
Median Sales Price
The median sales price for a single-family home in North Kona is $735,000, a 16.57% year over year increase since May 2019. Year to date, the median sales price has jumped 17.41%. For condo sales, however, prices have fallen 14% from $355,00 in May 2019 to $305,000 in 2020.
In South Kohala, home prices have risen 21% year over year from $569,500 to $693,000. The condo median sales price rose 17% from $530,000 to $622,500, but keeping in mind only ten condos sold during the month.
Nationally, the lack of available inventory, as sellers are holding their properties off the market due to the pandemic, combined with historic low interest rates and pent up demand compounded with a shortage of new homes being built, is driving prices up.
Locally, demand from mainland buyers is still evident, but many are holding off buying until they can sell their homes and then purchase in West Hawaii and many would-be buyers want to view the homes for themselves before purchasing.
The Griggs Report is published semi-monthly by Michael B. Griggs, PB, GRI