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The Griggs Report: Mid-December North Kona Real Estate Market Update

  |  Big Island: Market Trends, Mortgages/Economy/Market

Download the Dec. 15 Griggs Report here:   Griggs Report – DECEMBER 15, 2012

North Kona Residential Real Estate Market Trends to $4M

Griggs Report December 15 2012

Peak Market = Signals the end of real estate cycle. Neutral Market = Pending Ratio from 30 to 50

Hawaii Island Market Trends:  The Holidays are Here

A seasonal uptick in inventory and a modest seasonal decline in pending sales caused the North Kona Residential Pending Ratio to weaken over the past month. We will likely see the Pending Ratio reverse this trend by about this time next month. See Chart 1, Page 1 of the report.

The North Kona Residential median sale price has moved up a notch and now shows a 5% increase in price when comparing median price of 12 month sales to the previous period. That is coming close to a ½% appreciation rate per month which amounts to almost $2,000 per month price growth given the current median price of $387,000 in North Kona. This varies dramatically with price range and location and is more apparent in the under $500,000 residential market. See percent of change at bottom of Table 1.

Hawaii Island Distressed Property Update

The percent change in the number of distressed properties in the MLS listings for sale, pending sales and solds in North Kona, Waikoloa, Waimea, Hilo and Puna shows a declining trend. See Chart 5, Page 3.

Michael B. Griggs R(B)

Michael B. Griggs, R(B)

The REO count for the Big Island zones shows a decline of just 1 property. The number stands at 74. Over the past six months the rate of decline has slowed to 2 to 3 per month. The prior six months the rate of decline had been 14 to 15 per month due to lenders redirecting foreclosures to short sales and loan modification rather than face the Act 48 regulation. One year ago the REO number stood at 180. See Chart 6, Page 3.

*Pending Ratio is the ratio of listings in escrow (pending sales) compared to the number active listings for sale multiplied by 100. The Pending Ratio can be used as measure of the demand versus supply dynamic in the market place. The higher the ratio the stronger the demand versus supply balance

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