August 2020 Market Update
The Island of Hawaii real estate market continues to churn out sales and listings overall. Call me for a more in-depth of analysis of your particular property.
Summary Report:
Island Wide
The month of July, 2020 and first 7 months of 2020, year to date figures were generally positive for home and condo values. Condominium median sales prices for the month of July 2020 compared to July 2019 were down just -0.76% for Condos and -5.33% for Homes. For the first 7 months of 2020, Year over year, median sales prices, island wide, were down just -4.41%, for Condos, up +2.64% for Homes and down -21.88 % for Land.
North Kona
The month of July, 2020 sales volume was positive 21.71% but it was a single month “bright spot” as total sales volume and units declined. The first 7 months of 2020 produced -25.64% less unit sales in all categories and -29.79% less sales volume. As in the South Kohala district reduced inventory and plenty of buyers produced higher median prices for the month of July,2020 and the first 7 months of 2020. See median sales price highlighted in Green.
South Kohala District including Resorts
The positive stats for the South Kohala district which includes the 3 major resorts is impressive regarding Median Sales Price for all categories of real estate. See the table below with highlighted area in Green. Even though there is a reduced number of sales (-39.60%) and reduced $ sales volume (-9.18%) year over year, prices are higher for all categories. This is being caused by reduced amount of inventory compared to 2019 conditions and demand from buyers some purchasing sight unseen.
Grigg’s Report Highlights
- The latest data from Hawaii Information Service for N. Kona residential market continues to show a tightening market. Inventory has dropped to 103 for homes priced below $4.0M. Pending sales have reached 111. This has caused the Pending Ratio to climb above 100, into Peak market territory. We have not seen this since the red hot market of 2004. It is likely that the record low interest rates plus the relatively virus free environment has contributed to this impressive change in the market. Median price for current 12 months sales has reached $710,000. In January that number was only $648,000.
This is quite a remarkable change in the residential market in a short period of time. - The price range data at the top of page 2 shows there are only 44 homes on the market priced below $900,000 and 85 in escrow. In the over $4.0M residential market, the number of sales has more than doubled since the 2019 count.
- The Hawaii Island Residential Pending Ratio has rebounded sharply in the last two months. East and West Hawaii both increased. The Pending Ratios are all now in the Seller’s Market category.
- The Charts 5 and Chart 6 related to the distressed property will be updated on a quarterly basis.
- The Condo stats have also shown improvement in the past two months. Both price and pending ratio have improved. Median price is showing a 6% increase over the previous twelve months sales.
- Land stats show a decline in inventory. The low inventory is probably contributing to the decline in sales. Average and Median Price are both contributing to the decline in sales. Average and Median Price are both showing a decline in this report.
- Page 6 is the Pending Ratio Summary page. This page offers a quick glance of the Pending Ratio trend for N. Kona Res., Condo, Land and Hawaii
Island. This table shows improvement from last year and also since last month. The higher price ranges of the Residential market appear to be the most improved. - The Page 7 Kona Residential Price chart since 1972 is updated with the
new 2019 data. This is based on a data pool of similar homes many of which are either new sales or resales over the years. The total number of sales that make up the data pool is over 7,644 in the 23 subdivisions in the study. The result shows the 2019 average price was (plus six percent +6%) or $650,900.
The Griggs Report is published semi-monthly by Michael B. Griggs, PB, GRI
If you distribute material from the Griggs Report online, on your website or blog, etc., please include appropriate attribution.
Michael B Griggs PB, GRI, RB-12532 73-1201 Mahilani Dr.
Kailua-Kona, HI 96740
Click here for the Grigg’s Report for an in depth analysis.
Click here for the MLS data for all classes of real estate in all island wide zones.
Here are a few statistics for select districts-Averages for Residential, Vacant Land and Condominiums combined:
| Metric | Statistic | Island Wide | North Kona | South Kohala |
|---|---|---|---|---|
| Number of Sales | Month of July Change compared to 2019 | +15.53% | -20.74% | -26.53% |
| Number of Sales | Year to Date Change first 7 months | -7.66% | -25.64% | -39.60% |
| Metric | Statistic | Island Wide | North Kona | South Kohala |
|---|---|---|---|---|
| Sales Volume | Month of July Change compared to 2019 | +7.25% | +21.71% | -29.80% |
| Sales Volume | Year to Date Change first 7 months | -4.92% | -29.79% | -9.18% |
| Metric | Statistic | Island Wide | North Kona | South Kohala |
|---|---|---|---|---|
| Median Sales Price | Month of July Change compared to 2019 | -16.32% (All Clases)
-0.76% (Condos) -5.33% (Homes) -42.86% (Land) |
+15.90 | -18.07% |
| Median Sales Price | Year to Date Change first 7 months | -23.65%
-4.41% (Condos) +2.64% (Homes) -21.88 (Land) |
+5.66% (all classes)
-1.29% (Condos) +17.03% (Homes) -10.08% (Land) |
+12.67 % (all classes)
+15.38% (Condos) +4.64% (Homes) +16.03% (Land) |
Aloha,
Rick Oliver (B)
RB-18823
Coldwell Banker Island Properties
808-960-7330
rickoliverjr@me.com
