Kona Real Estate Market
Due to the recession of 2008, Hawaii’s economy is still struggling, especially due to the sharp decline in tourism, which is the economic base of Hawaii. The real estate in Kona, like the rest of Hawaii, is continuing to decline. However, many real estate experts are optimistic that the rates of decline are slowing and that Kona real estate will begin to recover sometime in 2010.
According to Hawaii news station KGMB9, the construction and housing market throughout Hawaii is continuing to weaken. The University of Hawaii Economic Research Organization has published numerous reports over the past months tracking the state’s real estate market performance. Although they expect the real estate market to continue to decline, they have forecasted slightly lower rates of decline than in pervious months. Nevertheless, they say that some aspects of the real estate market such as median home prices may continue to decline well into 2011. This does offer some hope for the recovery of the real estate market though, because lower home prices mean homes will be more affordable for home buyers.
The Honolulu Star Bulletin also reports that unlike mainland real estate markets, which are already showing signs of recovery and year over year improvements, Hawaii real estate is still declining. The number of combined single family home and condominium sales in Hawaii declined 37.8 percent between the first and second quarters of 2009, but the median sales price increased by 10.15 percent during the same period. However, the rise in median price only evens out with the similar rate of decline experienced during the same time period. Naalehu, located on the Big Island, has experienced a 38.89 percent increase in median sales prices between July 2008 and July 2009, making it one of the most improved real estate markets near Kona. However, Hauula and Volcano on the Big Island suffered some of the worst declines in median sales prices in the state, experiencing a 39 percent drop between July 2008 and July 2009.