Ready to Build? You’re Not Alone
2012 North Kona Land Sales: Back to 2006 Levels
Vacant buildable lots are becoming a focus again for buyers. As the inventory of homes for sale in North Kona shrinks, land is getting a second look, especially from buyers who want the opportunity to choose their view and who want to design their own Hawaii dream home.
After 2004, when 299 parcels of land sold, demand for land dramatically dropped to a low point in 2008. In 2008, only 53 lots sold in North Kona. As the economic recovery has progressed, land sales have been slower to recover than other segments of the real estate market. For a time, existing housing was abundant and, in many areas, homes were offered for sale at prices below building costs.
As the market recovers and desirable inventory becomes more scarce, the scale is balancing out. Existing home prices are rising as the number of homes available for sale continues to decrease. The number of land sales so far this year nearly matches land sales in 2006, although the median sale price still leaves room for plenty of equity growth. The median price for North Kona land in 2006 was $534,500. There were 107 land sales that year. As of today, Monday, December 10, 2012, there have been 96 land sales in North Kona with a median sale price of $199,000. There are currently 19 parcels of land in escrow and just over 230 active land listings.