– Supply: 5.86 months of inventory; supply decreased by 8% MoM but increased 9% YoY. – Price: Median sold price is $555,000, with a 7% MoM increase; new listings median price is $649,000. – Days: Median days in RPR for sold listings is 85, a 10% MoM rise; pending listings at 70 days.
Why it matters
– Market Timing: Reduced inventory and rising prices impact both buying and selling timelines, requiring strategic planning. – Inventory Trends: With 286 new listings and 1,225 active listings, understanding availability is crucial for coordinated transactions.
Now what
1. Evaluate Timing: Assess your current situation to decide the best time to list and buy based on market trends. 2. Price Strategically: Set competitive list prices by analyzing the upward trends in median prices. 3. Optimize Listings: Prepare properties to reduce time on market, focusing on the median days trend for effective sales.
Hawaii County offers unique destinations like Hawaii Volcanoes National Park and the picturesque town of Hilo, enhancing its appeal. For those navigating both buying and selling, aligning your strategy with the current market climate is essential. Contact me for a personalized approach to your real estate needs in Hawaii County, Hawaii: judy.howard@compass.com.
The Parker Ranch Rodeo and Horse Races are back! This is, by far, my favorite rodeo. And the horse races are SOOOO exciting. These are all ranch horses, ridden by working cowboys, and it’s great, clean, fun! July 4, 9 a.m to 1 p.m. For More Information
Photo by Chris Reed
I put out a newsletter every month. This is my first attempt at posting it as a blog. I know it isn’t great-the newsletter is much prettier and has more information. But I’ll get better at this, or I’ll find someone to help me! My newsletter contains news about local events, real estate market activity, local businesses, a give-away, and some fun or interesting facts, accompanied by some great photos. If you’d like to receive my newsletter, please just write me at judy.howard@compass.com
Local Happenings
Hawaii Performing Arts Festival Summer Season
Runs through July 24th, and includes opera, concerts, theater camps, and more! Click here for more information.
Kona Mele music video
Free, from 4 – 8 pm on July3 at the Makaeo Pavilion, Old Kona Airport. Contact sharon.sakai@laiopua.org for more information
Red White and Brew, Pukulani Stables, Waimea, July 3, 4-7 p.m. For more information
July 29-31, Edith Kanakaole Stadium, Hilo. Hours are 9-6 on the 29th, 9-5 on the 30th, and 10-2 on Sunday, July 31 Tickets for adults are $5, kids free. More information
Local businesses
Big Island Tea
Eliah and Cam have succeeded in making the most divine tea imaginable! And they’re having a tea-making workshop in August! Learn more.
Kona Stories
I love to read, and I always try to order my books through this independent book seller. Support local! More information
Zillow may not be great at valuing homes, but they have an excellent research department. They found that while black doors brought the highest boost in buyer opinions of value, not everyone liked them. Slate blue was more popular and brought higher valuations, compared to many other colors. Colors to avoid: pale pink and concrete gray!
Did you know?
* Where are all the pilots? About 33% of the airline-qualified pilots in the U.S. are age 51 – 59. 13% of the US’s airline pilots will reach retirement age within 5 years. While many pilots retired in the past 2 years, many also were lured into the private aviation field…..when one pilot transports just 6 people instead of 60, you do the math!
* If $2.2 million is the new net worth for you to be considered ‘wealthy’, to achieve this you should invest $12,861/month for 10 years to reach $2.2 million, $4,335/month for 20 years, $1,881/month for 30 years, $890 each month for 40 years and $437/month for 50 years. (CNBC)
* The reality is that on average most Americans leave their parents home around the age of 19 years old ….and live to be around 79 years old on average. That equates to a need for housing/shelter for SIXTY years – not 30 – about DOUBLE of what many commonly perceive. That’s a huge mistake. (Yes, 60 is the new 30 in more ways than just age! 😉)
The average US renter pays about $1,325/month, much more in larger towns and cities. That $1,325/month escalating at a 2% inflation rate over 60 years equals over $1.8 MILLION paid in rent…..to a landlord. That ‘rent money’ paid to a bank – instead of a landlord – is a payment that builds equity and ownership. The mortgage interest tax deduction is one of the very few substantive deductions most people have. While every buyer wishes to time markets perfectly – and yes markets and home prices do go up and down – focusing more on the long term may deliver much, much larger savings ….and gains.
* As of 2011, no single investor in the U.S. owned more than 1,000 homes. Just five companies own a collective 280,637 homes as of October 2021, adding 76,325 homes to their portfolios between March 2018 and October 2021.
– Invitation Homes: 83,512
– Progress Residential: 71,930
– American Homes for Rent: 56,077
– FirstKey Homes: 35,899
– Amherst Residential: 33,219
When/if institutional investors stop buying single family homes, we could see a spike in more affordable home options for first time home buyers…..
Affordable Housing
Affordable Housing in Hawaii County
We have a huge problem here with affordable housing. A new County law allocates revenue from a surcharge on expensive second homes to an affordable housing fund. That is expected to generate about $5M in the fiscal year starting July 1.
The County Council recently passed a bill that would allow the administration more flexibility in how those funds were used to promote affordable housing. For instance, the funds could be used to acquire distressed properties, and make them habitable, or as grants for essentials like roof repairs to keep people in their homes.
The Mayor vetoed it! Go figure!
Affordable Housing in LA County
The Los Angeles city council last week unanimously approved returning a proposal to increase the transfer-tax rate on the sale of LA residential and commercial properties of $5 – $10 million to 4%, while those valued at $10 million or more would be charged a 5.5% rate, both up from the current 0.45% rate. The money would go toward new housing units and services like down-payment assistance and eviction prevention.
Imagine waking up to cool, crisp air and Mauna Kea views. Waimea is delightfully cool and green. The temperatures at my place range between the low 50’s (on some nights) and the high 70’s at this time of year. They will rise a bit as the summer progresses, but I don’t expect to see highs above 85, and the nights should remain cool. There are cooler places on the Big Island, but none as conveniently located, with schools, a hospital, a theater, and two observatory headquarters in town, not to mention the amazing beaches along the Kohala Coast.
We’re getting a bit more rain at my place than last month-2” so far this month-but when it gets drizzly my daughter, who is not a fan, just heads for the beach-about a half hour away. I’m happy to have the rain. The plants and the ducks love it. The altitude (about 2800’) and rain are what keep Waimea delightfully cool and green!
Here’s a 40 acre listing in West Waikoekoe, which is very close to where I live and should have the same weather:
Here’s a lovely home, on 1.5+ acres, about 5 minutes from town, but with similar weather:
Nohomalu Place, Waimea Home Just Listed- Big Island, Hawaii
This place has a whole house dehumidifier, which keeps it warm and dry even during extended rainy periods.
Generally, our weather changes pretty frequently. Sometimes we’ll have sunny skies, interrupted by brief downpours, and then more sun. Some days will be overcast and cool. Others sunny and much warmer. But you can count on change, and if it isn’t coming fast enough, you don’t have to travel far to find completely different weather!
In the current Waimea area market, it is a great time to sell, but tough on buyers. There is low inventory to choose from and buyers must prepare before seeking property. Because of the low inventory, sellers are getting what they ask for, as long as it’s within reason. Buyers are having a very tough time finding anything, and they are paying top dollar if they are lucky enough to secure a property.
Just How Ruthless is the Hawaii Buyer’s Market?
Property in Escrow: Waiaka Place, Waimea, Hawaii
Some buyers are having a hard time understanding just how tough the current Hawaii real estate market is. This is not a time to put in a low offer, “just to see”. Study the market for just a little while and you will learn that properties are selling very quickly, for list or above.
I have not yet received an offer where a large earnest money deposit would be forfeited to the seller if the deal fell through, but I’m not going to be surprised to see that term.
At this point, if you must sell a home in order to buy a new home (a home sale contingency), you should be prepared to put up a large deposit and be willing to forfeit it should your existing home not sell.
I have sellers who just rejected an offer from a buyer who indicated he was willing to pay far more than the list price but included a home sale contingency. The sellers were able to reject it because another very strong offer had been submitted even before the property was listed on the MLS.
In a Market Tough on Buyers, Prepare!
Buyers who can’t afford to buy a property while still owning another property should be looking into bridge loans. They should also know their budget and share the information with their agent. If financing is needed, arrange it before looking at properties since there won’t be time to obtain it after choosing a property. The sellers will likely go with someone who is paying cash or submits a pre-qualification letter with their offer, so it is best to remove every possible contingency from an offers. They should be prepared to pay list or above.
Truthfully, bargain hunters need to sit this market out. The market is likely to soften a bit as interest rates rise, and cash may once again justify a slightly lower contract price.
Property Under Contract: Naalehu, Hawaii Judy S. Howard Corcoran Profile
For questions and inquiries, give me a call or email me at Judy@livinginwaimea.com. To learn more about me and my background, read more or watch my introduction video here.
There are some differences this Christmas in Waimea, COVID-style. It is quieter, but still quite festive and lovely. There are many more people out and about than there were on last Memorial Day weekend, but we are nowhere close to the pre-COVID level of activity.
Church Row, quiet this year without the Christmas tree sale
We’ve always hustled over to Church Row in Waimea the day after Thanksgiving to buy our trees. (If you don’t get there pretty early, you may be disappointed.).
This year, the Chong family did not set up their tree stand. Rumor has it that because of the travel restrictions, and the relatively poor quality and limited number of trees available in Oregon, they decided it was not worth the effort of flying over to select trees.
I know of people who bought their trees at Costco in Kona, but were very disappointed in the quality. I followed a friend’s advice and drove into Kuhio Village, which is a Hawaiian homes land subdivision in Waimea, and found quite a lovely collection of trees. Not only that, but I bumped into a dear old friend and was able to catch up with her.
Another Great Christmas Tree Place!
No Christmas Parade this year. Usually, on the first Saturday of December, many of the truckers in the area decorate their semis, and smaller trucks, with lights, and pull floats through the center of town at dusk. Kids and their parents line the street, and collect a ton of candy thrown by the people on the floats. Families stake out their spots pretty early in the morning, and by evening it is standing room only. There are sidewalk sales at the shopping centers, and the town is a little too packed for my liking. But folks have fun.
Even without the events, big and small, that usually mark the season, the town feels festive. The pop up store with locally produced crafts seems to be doing a good business. They’ve got some lovely things in there. The shopping centers are decorated, and Christmas music is playing all over.
There are more tourists and returning college kids in town, which can be nerve-wracking while we’re all facing the possibility of infection, but they are almost universally abiding by our mask rule and their joy at being here is infectious!
People seem jollier than they’ve been in a while, and the weather has cooperated with some chilly nights, a little snow on Mauna Kea, and some sparkling clear, warm days.
