We all know the banks have changed the mortgage application process, including better buyer qualification. It is no longer possible to breathe on a mirror and get a loan, and that’s good. Unfortunately the new requirement guidelines have gone way overboard, as anyone who is trying to get a home mortgage knows. For example, the average credit score of successful buyer is now 760. Before 2004 it was 720. That’s a whopping increase. Why? Because there is not enough money to make new home loans.
Archive for the ‘Big Island Hawaii Real Estate’ Category
Early this month local economist Paul Brewbakwe agreed with the Oahu real estate industry that property prices on that island are set to climb higher than the current median home sale price of $664,000. The highest median price on record was set at $685,000 in 2007. Depleted inventory and no new construction are driving the housing price spiral.
Then about two weeks ago it was reported that May 2012 median home sale prices on Maui set a record low. The Maui economy, like the other neighbor island economies, is falling farther behind Oahu’s recovery. The good news is the neighbor islands will eventually follow Oahu. Here, West Hawaii, Big Island housing inventory continues to fall. Rising prices must follow if this continues. In neighborhoods along the Kona-Kohala Coast, custom home building has returned.
Recently a rumor has been winding around the Big Island. Today I called my favorite Title Guaranty escrow officer and confirmed there is no truth to the rumor. Title Guaranty is still accepting short sale escrows.
That’s a huge relief. Since the REO (bank owned) property inventory has artificially dried up, and the non-distressed property inventory has also dwindled since last year, the market can do something with those short sale properties. Like find buyers for them.
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.
In South Kohala, single family home sale prices range from entry level $200,000 homes to multimillion dollar homes in exclusive resort neighborhoods. I do not usually lump them all together, but because I wanted to look at the past three years, I thought it would be interesting to see the average sale price of all homes.
I will hold an open house at the Ka Milo condos at least once a week, for a couple hours mid-afternoon. Please call me for dates and times. Hope to see you there! Location: Ka Milo, Mauna Lani Resort, Kohala Coast, Big Island Hawaii. Asking price: $1.495M.
Ka Milo, open house, Mauna Lani, Kohala Coast, Big Island, Hawaii
Most weekday mornings I can be found at my desk in the beautiful Mauna Kea Resort working away. When hotel guests stop by to say hello and talk real estate, they are typically surprised to find two bedroom condos, some on the fairway, all with ocean views, well under $1M. Today the asking prices for those Kumulani condos start at $550,000. Located within Mauna Kea Resort, Kumulani is an amazing value for tennis, golf and beach buffs.
January through October 2011 Kohala Coast condo sales are up 36.6% and prices are down 7.7% over January through October 2010.
Third quarter 2011 Kohala Coast condo sales are up 25.5% and prices are down 9.1% over third quarter 2010.*
October 2011 Kohala Coast condo sales are down 36.4% and prices are down 29.8% over October 2010.
January through October 2011 Kona condo sales are up 9.4% and prices are down 21.8% over January through October 2010.
Third quarter 2011 Kona condo sales are up 5.5% and prices are down 9.1% over third quarter 2010.*
On the front page of West Hawaii Today, Tuesday October 18, 2011, the second lead story headline blazed: Home Sales Dip… Hmm, that doesn’t sound right. Using Hawaii Information Services data, my research since late 2010 has found home sales climbing in North Kona and South Kohala while prices continue to slip.
So I expanded my research to include all West Hawaii single family and condo sales from South Kona to North Kohala, January through September 2011 vs 2010. Again, my research still found sales for improved residential higher this year than last: 999 to 859. The 2011 January-September median sales price was $323,000 compared to $344,000 last year.