It is another beautiful day in Hawaii Nei. A lot of my clients are asking what is the status of our Island Real Estate market.
It’s hard to say what the market is going to do. Because of low inventory and low interest rates we are not seeing price reductions to any great extent. We are still seeing well priced properties sell in a few days even those listed during the shelter in place. Virtual showings are generating offers. We have a new Covid Addendum which, among other things, allows for indefinite extensions to closing for physical inspections.
Analysts are predicting it will be Real Estate that fuels the recovery. A point in favor of sustained prices is the fact that homes today have a lot more equity than 2008 when people treated their homes like piggy banks. Current data shows 42% of homes in the US have no mortgages…
It is another beautiful day in Hawaii Nei. A lot of my clients are asking what is the status of our Island Real Estate market.
It’s hard to say what the market is going to do. Because of low inventory and low interest rates we are not seeing price reductions to any great extent. We are still seeing well priced properties sell in a few days even those listed during the shelter in place. Virtual showings are generating offers. We have a new Covid Addendum which, among other things, allows for indefinite extensions to closing for physical inspections.
Analysts are predicting it will be Real Estate that fuels the recovery. A point in favor of sustained prices is the fact that homes today have a lot more equity than 2008 when people treated their homes like piggy banks. Current data shows 42% of homes in the US have no mortgages, not sure what that number is in Hawaii or if it is significantly lower since we see a lot of cash buyers moving here. Today average home equity is close to $200,000 so there is some cushion here, too. That said, I think the resort owners who relied on rental income to pay their second home/investment property mortgages without sufficient financial cushion will feel the most pain. We are seeing the majority of new listings over the last week or two in the resort condo market under $1,000,000. That market will have the best buyer opportunities. I see buyers who have been priced out of the market by prices at the beginning of the year swooping in to pick those up. However, owners with more resources took their properties off the market. Not just resort property owners….across all our island sub-markets. This leaves less inventory now than on March 25th. This also contrasts with 2008 when there was a surplus of homes and condos with so many new projects coming into the market very close together. We have seen some list price adjustments as sellers temper their earlier in the year market optimism. Sale prices are holding firm and we have yet to see massive discounting. However, the number of new escrows and sales is down.
The closest scenario I compare this to is 911. Hawaii Real Estate actually bumped up after 911 and kept a steady climb all the way to the bubbling market 5 years later. My prediction is that Hawaii will become even more desirable because of the low infection rate, low mortality rate and the acceptance of working remotely. Part of the 911 bump was due to the “Life is Short, what am I waiting for” reaction. We will see that again…..IMHO. But as you know by now, I am forever optimistic!
Please let me know if there is anything I can do for you or anyone you know who may be interested in Big Island Real Estate. It is always wonderful to hear from you. Main thing to focus on right now is staying healthy and being thankful that we live here! Never has “Lucky you live Hawaii” been truer!
A big challenge facing the housing industry is determining what impact the current pandemic may have on home values. Some buyers are hoping for major price reductions because the health crisis is straining the economy.
The price of any item, however, is determined by supply and demand, which is how many items are available in relation to how many consumers want to buy that item.
In residential real estate, the measurement used to decipher that ratio is called months supply of inventory. A normal market would have 6-7 months of inventory. Anything over seven months would be considered a buyers’ market, with downward pressure on prices. Anything under six months would indicate a sellers’ market, which would put upward pressure on prices.
Going into March of this year, the supply stood at three months – a strong seller’s market. While buyer demand has decreased rather dramatically during the pandemic, the number of homes on the market has also decreased. The recently released Existing Home Sales Report from the National Association of Realtors (NAR) revealed we currently have 3.4 months of inventory. This means homes should maintain their value during the pandemic.
This information is consistent with the research completed by John Burns Real Estate Consulting, which recently reported:
“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices).”
What are the experts saying?
Here’s a look at what some experts recently reported on the matter:
“Supported by our analysis of home price dynamics through cycles and other periods of economic and housing disruption, we expect home price appreciation to decelerate from current levels in 2020, though easily remain in positive territory year over year given the beneficial factors of record-low inventories & a historically-low interest rate environment.”
“The fiscal stimulus provided by the CARES Act will mute the impact that the economic shock has on house prices. Additionally, forbearance and foreclosure mitigation programs will limit the fire sale contagion effect on house prices. We forecast house prices to fall 0.5 percentage points over the next four quarters. Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand. Price growth accelerates back towards a long-run trend of between 2 and 3% per year.”
20th Annual Ukulele Festival at Waikoloa Beach Resort is coming up on March 7th!
Annual ‘Ukulele Festival ~ Waikoloa Beach Resort
Ukulele Giveaways | Workshop by Roy Sakuma | Informational Booths
All star line-up on three stages at Kings’ Shops and Queens’ MarketPlace. Lineup includes Roy Sakuma, Kunia Galdeira, Kalei Gamiao, Mark Yamanaka and Willie K! Stay tuned for more information.
Waikoloa Beach Resort invites all ‘ukulele lovers to B.Y.O.U. and join in the celebration of Hawaii’s favorite musical instrument, at the Annual Great Waikoloa ‘Ukulele Festival.
The free event begins with a free ‘ukulele workshop at and continues all day with live entertainment on three stages at Kings’ Shops and Queens’ MarketPlace, along with displays, demonstrations, and ‘ukulele giveaways by sponsoring companies.
Monthly Movie: Special Presentation of Moana in Hawaiian by Punana O Leo Kona
Punano O Lea Kona School’s mission is to drive and inspire change to ensure a living Hawaiian language in Hawaii and beyond. The school and its students will be hosting a series of talks, performances, cultural demonstrations, and educational booths at Queens’ MarketPlace in celebration of the Hawaiian language and culture.
Talks, performances and booths will be from 3 – 6pm. The movie will be premiered at 6pm. Bring your own beach chair or blanket, and enjoy this very special presentation of Moana!
An adventurous teenager sails out on a daring mission to save her people. During her journey, Moana meets the once-mighty demigod Maui, who guides her in her quest to become a master way-finder. Together they sail across the open ocean on an action-packed voyage, encountering enormous monsters and impossible odds. Along the way, Moana fulfills the ancient quest of her ancestors and discovers the one thing she always sought: her own identity. PG | 1 hour and 47 minutes | Animation, Adventure, Comedy
Photo + Article courtsey of: Queens’ Marketplace
When: Saturday, February 22 Time: 3 – 8 pm (movie starts at 6 pm) Where: Coronation Pavilion
Queens’ MarketPlace Holiday Concert ~ Saturday December 21st!
Join us in celebrating the holiday season with a special dance performance by Sasha Knowles Dance, a concert by the Honoka’a High School jazz band, pictures with Santa, and holiday face painting!
Face painting from 4 – 7pm. Pictures with Santa from 6 – 8pm. Plus a holiday pop-up market at Yoga Barre.
Families are invited to bring their keiki (children) and their cameras to meet Santa Claus by the Clock Tower (between Island Gourmet Markets and Romano’s Macaroni Grill) at Queens’ Marketplace where Santa’s helpers will assist with photos in a festive setting!
Afterwards, shoppers can enjoy a stroll along the mall that’s decked out in holiday decorations, pick up a snack, or sit down and relax over dinner.
Celebrate Kona’s spectacular sunsets with live Hawaiian music and beautiful hula performed by the dancers of Halau Ka’eaikahelelani, under the direction of kumu hula Yuki Ka’ea Lyons and Lily Kahelelani Lyons Dudoit.
Everyone’s invited to bring lawn chairs or beach mats and enjoy the evening as the sun begins its journey over the horizon. As Hawaiian Sunset Saturday comes to a close, attendees can extend the evening at one of many nearby restaurants.
Event Details:
Date: 12/7/2019 (Saturday)
Address: Coconut Grove Marketplace, 75-5809 Alii Dr, Kailua Kona, HI
Mele Melodies Concert at King Kamehameha Kona Beach Hotel ~ Sunday December 1st!
The Kona Aloha Singers, a New, Non-Profit Contemporary/Popular Music Chorus in Kailua-Kona, is excited to appear in their second performance on Sunday December 1st, 4 pm at the Courtyard by Marriott King Kamehameha Kona Beach Hotel. Featuring Artistic Director Katya Eaddy!
KAS will sing songs from popular artists such as Feel It Still, I’m Still Standing, Sing, Happy Xmas and MORE! They will also have some great musicians accompanying them along with some fun surprises. You’ll be thrilled to hear how amazing the songs you love sound with the beautiful blending of voices unique to choral music.
Come Support Community Music in Kailua-Kona with the Holiday Concert of The Kona Aloha Singers!
Date: 12/1/2019 (Sunday)
Address: Courtyard by Marriott King Kamehameha Kona Beach Hotel , 75–5660 Palani Road Kailua Kona, HI 96740
Loving Living in Hawaii 