REAL ESTATE MARKET UPDATE FOR WEST HAWAII SEPTEMBER 2020
We have had a VERY busy summer in West Hawaii with homes selling almost as quickly as they come on the market. With tightening inventory, we are seeing prices increase and more buyers purchasing homes sight unseen.
According to statistics from Hawaii Information System, the number of homes sales in North Kona for August was 63, up 28.57% year over year from 49 last August. Condo sales dropped 15% from 40 sales in 2019 to 34 in 2020. The median price for a single family home dropped 5.77% year over year from $710,000 in 2019 to $669,000 in 2020. Condo prices rose by 21.85% from $325,000 last year to $396,000 in 2020. Year to date data shows a median single family home price increase of 13.92% and for condos prices are up by 2.3%.
For South Kohala, single family home sales dropped 33% year over year from 30 sales in 2019 to 20 in 2020. Condo sales were flat with both 2019 and 2020 having 24 sales in August. Median prices for single family homes dropped 2.6% from $582,000 last year compared to $570,000 last month. Condo median sales prices rose 29% year over year with $525,000 in August 2019 and $680,000 in 2020.
“The buyers are coming in because of the historic low interest rates– that’s the No. 1 reason,” said Lawrence Yun, chief economist of the National Association of Realtors. “The secondary demand is coming from the work-at-home phenomenon that has people looking for bigger homes and caring less about commuting time.”
The supply of homes on the market in the US was the lowest for any July since NAR started tracking the data about five decades ago, Yun said. Furthermore, the “V Shaped Recovery” that was predicted in April for the housing market came true as the US and Hawaii housing markets have shown more sales this summer than last. We hope to continue to provide good news about the housing market here in West Hawaii as we navigate the future.