Big Island - December 2022 Newsletter

Aloha and Merry Christmas!

I am very grateful to my family, friends, clients, colleagues, and all the people I encountered to make 2022 very successful. MAHALO!
I wish you a warm and happy holiday season!
  
December started with Mauna Loa Eruption, the world's largest active volcano. Luckily, the lava flowed north and did not cause any damage. The eruption, fortunately (unfortunately for those who wanted to see the lava), was very short-lived.

Kilauea Volcano also stopped erupting, so it is all quiet and safe here on the Big Island of Hawaii.
It was remarkable to see LIQUID EARTH.  The energy and the dramatic sight are hard to explain in words.

And this week, the first snowstorm of the season hit the Big Island. Mauna Loa is now covered with snow. It is inspiring to see the mountain, which was glowing red two weeks ago, covered with majestic white snow.
Where in the world can we see red lava and snow in the same month?
AMAZING.

BIG APPLE!
I was in NYC for a business trip for the first time in three years. Rockefeller Center Tree Lighting event was so crowded despite the freezing weather!
I also visited COMPASS, NY, where it all started. Big Mahalo to Takk Yamaguchi and Jason Wang for sharing the latest of NYC and Brooklyn.

Forbes selected Kona International airport as runner up for the TOP 5 AIRPORTS for HOLIDAY TRAVEL.
Ellison Onizuka International Airport (KOA) has the highest percentage of ON-TIME flights(88.89%) and the lowest percentage of flight cancellations(0.49%) out of the 100 busiest airports. KOA also ranked ninth lowest for air carrier delays.
WOW. I did not expect this!

December 2022

2022 Year End Video

Please read on for the latest real estate updates and analysis. 
Also, Islander Sake Brewery is now in inaugural production. I have more below.

Kai's Kona Market Update

December 2022

National Recap

Existing-home sales declined for the tenth month in a row in November, according to the National Association of REALTORS®. All four major U.S. regions recorded month-over-month and year-over-year declines.
Total existing-home sales waned 7.7% from October to a seasonally adjusted annual rate of 4.09 million in November. Year-over-year, sales dwindled by 35.4% (down from 6.33 million in November 2021).
"The principal factor was the rapid increase in mortgage rates, which hurt housing affordability and reduced incentives for homeowners to list their homes. Plus, available housing inventory remains near historic lows."
Total housing inventory registered at the end of November was 1.14 million units, which was down 6.6% from October, but up 2.7% from one year ago (1.11 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, which was identical to October, but up from 2.1 months in November 2021.

Kona Single Family Home

Single Family Homes

While we hear rapid softening in some parts of mainland, the Kona market is faring well. Both of our new listings went into escrow before they even hit the market, and our buyer clients are still struggling with multiple offer situations. However, the market is different from spring 2022. Sellers need to be flexible, and quality marketing is critical.

The number of active listings and pending sales are up a bit this month compared to the previous month. The monthly supply is 3.7 months. 6 months' supply is considered neutral.
The inventory is still 57% of 2019. 

Mid Month Trend

Inventory tends to go up this time of the year. The market typically gets busy after New Year. Supply has surpassed 4 months. We need to keep a close eye on how the market will move after New Year.

Below is a summary of the single-family home market in Kona. We saw a shift in June 2022 as the number of Active Listings(supply) surpassed the number of Pending Sales (demand).
2023 will be an interesting year.  Please stay tuned.

Below are 30-year mortgage rates(national) for the last two years. The  3% rate surpassed 7% in November. The rates are now at the low 6%.  
The rate was 6.75% when I first purchased a house in the early 2000s. But of course, the price of homes was much lower. Affordability is a big issue.

Condominiums

Condo
The inventory is increasing steadily, and the sales pace is slowing down. The pace is down 44% compared to the prior month and 66% compared to the previous year. The monthly condo supply, which has been extremely low, is now up to 3.6 months. It is almost the same as the single-family home market. 3.6 months worth of inventory is well within Seller's Market territory. 

Mid Month Trend

Just us Single the Family Home market, the number of active listings(supply) is increasing and the number of Pending Sales decreasing.

The month SUPPLY went up this month, although it is still in Seller's market territory. The monthly supply which hovered under one month for over a year is now close to 4 months. 

Meet the TAKK TEAM, NYC

Big Island Resorts

2022 is almost gone. The resort market saw a significant appreciation over the last three years.

Resort Condo median price appreciation since 2019.

Waikoloa:
$567,000(2019) to $1,090,000(2022): +92.2%

Mauna Lani:
$907,000(2019) to $1,542,500(2022): +70.0%

Mauna Kea:
$1,240,000(2019) to $3,750,000(2022): +202.4%.

Jason Wang, NYC Real Estate Advisor. He is smart, considerate and sharp.  Watch Jason in Action!  

Real Estate in the News

Global Trends Impacting Real Estate in 2023

Looking ahead to the new year, the annual report from PwC highlights the top factors that will drive changes to real estate. Macro forces of today will result in changes for real estate in 2023—from the sales pace and buyer preferences to city infrastructure and investor demand. Check out the article to read about it all, and get an inside peek at the top markets to watch.

Courtesy of PwC

Local Happenings

Islander Sake Brewery in Production

Handcrafted Sake is NOW AVAILABLE at Mauna Kea Resort (Hapuna Golf Club House). Inaugural New Year's Sake can be purchased at Islander Sake Brewery(Hapuna), Kona Wine Market,  Black Rock Pizza, and more to come. 
Handcrafted sake is brewed in a Junmai style using only rice, water, yeast and koji. The unpasteurized NAMA(fresh) sake is refreshingly light with a deep taste and balanced finish. 
Mahalo for the support!

Learn More Here

Lifestyle Tips and Tricks

15 Dazzling Winter Door Decorations to Welcome the Season

Bring winter to your doorstep with festive and fun decorations. Create a coastal scene, opt for a winter village look, or adorn a simple farmhouse DIY wreath. Whatever your style there’s a way to add color, texture, and foliage that fits your home’s seasonal vibe.

Courtesy of Better Homes & Gardens

7 Best National Parks to Visit in Winter

Many people consider a National Park visit an essential summer trip—but don’t sleep on the same parks in the winter. Break out your winter gear and journey to these winter wonderlands.

Courtesy of Travel + Leisure

How to Make Holiday Dinner Cleanup a Breeze

Do you ever feel like you spend more time cleaning up after a holiday meal than you do enjoying it? You’re not alone. Set yourself up for an efficient clean up and spend more time with friends and family. Try out these tips during the holiday season, and even use them for parties all year long. 

Courtesy of HGTV

25 New Year's Eve Desserts to Ring in 2023

Celebrate the start of the new year with something sweet! Whether you’re looking for a decadent showstopper or an easy treat, end your meal—and the year—on a delicious note.

Courtesy of Southern Living

Featured Listing by Kai

North Kona

Hale Kehau Unit 109

3 BD   2 BA   2263 SF   $1,350,000

Beautiful luxury condominium in Keauhou. This single-level corner unit condo has a dramatic ocean view and sunset. 
Matterport Vitual Tour Link

Aspen Home Listed for Nearly $14 Million Takes Design Cues From New York’s Tribeca Nabe

Recently remodeled, the open floor plan, tall ceilings and sliding glass doors allow for far-reaching views of the Rocky Mountains, according to the listing with Steven Shane of Compass.

Thanks for reading and subscribing! Ready to achieve your next real estate goal?

Reach out to chat!

Happy Holidays!

See you in 2023!

Daisuke 'Kai' Ioh

RB-19352
Realtor Broker
M: 808.936.6148
kai.ioh@compass.com
keteamhawaii.com

Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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