August 22, 2010

Kohala Coast real estate market update

The Kohala Coast real estate market, part of the larger Big Island real estate housing market, continues to face challenges heading into the second half of the fiscal year. Despite an increase in condo sales and an uptick in tourism activity, fewer Kohala Coast homes for sale were purchased and the median price for both categories declined. According to an August 10, 2010 report from Pacific Business News, “The Big Island of Hawaii saw eight more condominium sales this past July than in the same month last year, but saw drops in the volume of single-family home sales and median prices for both homes and condos during that time, according to the Hawaii Information Service. Last month’s 41 condo sales were 24 percent better than the same month last year, when 33 condos were sold. Single-family home sales dropped nearly 11 percent in July, going from 120 to 107. Both single-family homes and condos saw a slip in median prices this July. Homes sold at a median price of $244,500 — compared to last year’s $258,000 – while the median price for condos came in at $235,000 — $30,000 less than last July.”

The Kohala Coast real estate market should begin to improve along with the rest of the local economy, which has started to turn around along with the tourism sector. A July 28, 2010 piece also from the Pacific Business News found that “Visitors to Hawaii continue to arrive in greater numbers and spend more, the Hawaii Tourism Authority said Wednesday. In June the number of tourists hitting Hawaii shores rose 13.6 percent to 625,522 visitors compared to the same month last year. Total tourist spending in June rose 16.1 percent, or $131.7 million, to $948.9 million when compared to June 2009. Daily spending averaged $161 per person, up from $151 per person a year ago…The HTA statistics released Wednesday measure spending by visitors who arrive by air and do not factor in spending from cruise ship passengers. All islands saw heavier visitor traffic this June, with arrivals to Oahu increasing the most, 18.3 percentage points, or 390,206 total visitors. Oahu was followed by the Big Island, which saw an 8.9 percentage point increase, then Maui with a 5.9 percentage point jump and Kauai rounding out the major islands with a 5.8 percentage point gain over the previous June.”