Condo sale prices on Hawaii’s Big Island have climbed higher in 2012 year to date. With the exception of January where prices decreased by 8.7%, Big Island condo sale prices increased in February 6.2%, March 55%, April 3.7% and in May 18.3%. The 2012 monthly unit sales were more uniform than last year, but with bad economic news continuing to come out of Europe, I fully expect U.S. consumer confidence to wane into the summer. That should trigger a fall in Big Island condo purchases, as the island is largely a second home market.
However, since Hawaii still has a moratorium on non-judicial foreclosures, the REO (foreclosed property) market has dried up, significantly reducing our inventory. Therefore I don’t expect prices to fall. For example, the lovely condo neighborhood of Wai’ula’ula at Mauna Kea Resort has only one unit available for sale. Wow! There’s also only one unit available in the Villas at Mauna Kea, and only one unit for sale in Kauna’oa at Mauna Kea. Incredibly, there are still three reasonably priced ocean view units available in Kumulani at Mauna Kea Resort. The inventory at Mauna Lani Resort is also shrinking.
What predictions do you have about our Big Island condo market?