Amidst the economic upheaval that is affecting global markets recently, the shining light is the drop in interest rates, providing home buyers more purchasing power. Will this help the West Hawaii real estate market through the spring market?
The first two months of 2020 have indicated the desire in the North Kona single family home market with prices and sales seeing double digit increases year over year, according to the February statistics from Hawaii Information Services. There are also buyers, who have been waiting on the sidelines for years, waiting for an opportunity to get into the market after the year over year increases in home prices since 2012.
The median price for a single family home in North Kona was $770,000, an increase of 17.56% from $655,000 year over year. Single family homes sales jumped 19.44% from 36 homes sold in February 2019 to 43 in 2020.
For condos in North Kona, sales were up 9.68% from 31 in 2019 to 34 in 2020. Prices, however, dropped 13% year over year from $375,000 to $323,500.
South Kohala, which had been tracking the robust market in Kona the past few months, saw a dip of 18% for single family home prices from $690,000 in 2019 to $565,000 in 2020, with 23 homes sold last year compared to 25 this year, an uptick of 8.7% year over year for sales.
Sales volume for North Kona for single family homes was up 57.34% year over year and 65% up year to date while condos were up 10.98% year over year.
As we know, inventory is still tight and there have been instances of multiple offers in the market. Anecdotal stories of buyers looking to remove funds from the stock market to put it into real estate have occurred.