Hawaii | Big Island STYLE October 2022 Newsletter

Happy October!

Aloha from Kona, Big Island of Hawaii!
October means Kona Coffee harvest season. 
Mark Twain once wrote, “I think the Kona coffee has a richer flavor than any other, be it grown where it may and call it by what name you please.” This was after his visit to Hawaiʻi Island in July of 1866. 

Ironman World Championship was back in Kona after three years! It was inspiring to see 5,000 triathletes push their limits. Having so many "SUPER FIT" athletes, families, and supporters in this small town  was no small feat.  We all worked together to make it happen.
Kona, WE are the Ironman! 

Kona Coffee Cultural Festival is returning this November!  Hawaii's longest-running food festival celebrates its 50th year. Amazing.
The 10-day festival celebrates the Kona Coffee harvest, people, and culture.  Many Kona Coffee farms offer a firsthand look at growing this world-famous crop. One of the most popular events is the Holualoa Coffee stroll, where we can taste this year's first crops!
The festival starts November 4th.

So many uncertainties still surround us. The election, Ukraine, inflation, currency rate (Anyone thinking about going to Japan should do so!), etc. 
Nationally speaking, existing-home sales dropped  23.8% last month than in September 2021. However, national home sale prices continued to increase, jumping 8.4% from a year ago. September marked 127 straight months of yearly sale price increases. Wow!  Inventory of unsold existing homes declined to a national average of 3.2 month supply.  5-6 month supply is thought to be the neutral market. 
The inventories here on the island are much lower than national average.  Please continue reading for the latest in Hawaii real estate market.

I decided to give a surfing another try after 20 years. Like many, I aspired to become a great surfer when I moved to Hawaii. Unfortunately, it didn't happen that way and I switched to golf.  Riding the waves was not easy but LEARNING something NEW is always exciting!! Surfing is a LIFESTYLE.
Big Respect to those keep riding the waves!

WELCOME TAKK Yamaguchi from NYC. 
He is one of the original Compass agent who started the company. His foresight and energy inspire everyone who knows him. It was a real honor to be on his podcast show, REAL TAKK PODCAST. 
Mahalo Takk! 

Please read on!

Kona Market Update

October 2022

Kona Single Family Home

The median price went down for the first time since January 2021. It is +13.8% Year over Year. As of Oct 20th, the YTD median price rose again to $1.075M. 
The number of Active Listings increased slightly from last month to 101. This includes about TEN yet-to-be-built homes on Alii Drive. We are still at about 50% inventory level compared to Pre-Pandemic.
While Kona is still a Seller's market, it is moving towards a more balanced market. We now see more realistic pricing by sellers.  

OCTOBER TREND:
The number of pending sales increased this month while the active listings went down a bit in last two weeks. 

The below chart summarizes Kona single-family home market since January 2021.  The first FED rate hike in June had a significant impact as we can see.  The inventory which shot up in August (Seller's market regardless) is now down again to a 2.3-month inventory level.  Kona is still in the Seller's market.  The neutral market is said to be around five month worth of inventory. 
The market is NOT crashing.  2021 hype was anomaly and we are on our way to going back to normal.  There were over 400 active listings back in 2008 when the market turned. 
The sales volume for Big Island is up $830M compared to 2019.  
The mortgage interest rates are NOT tied to Fed rates.  It moves with inflation rates.  When the inflation stabilizes, the mortgage rates too should drop as well, which will positively affect the real estate market. 

Kona Condominiums

The YTD median price of Condominiums went down slightly in September. The first drop since March 2021. However, as of Oct 20th, the YTD median price has risen again to a record high  $550,000.
The number of Pending Sales is down; however, the absorption rate is 73.7%, which translates to only 1.36 months of inventory.  The inventory level is still at about 25% of Pre-Pandemic days.

OCTOBER TREND:
The inventory and pending sales are both down. Lower priced condos are more affected by interest rates.

Big Island Resort

2019- 2022 Top Luxury Neighborhoods (Over $3M) 
Kona, Big Island :  TOTAL 285
South Kohala, Big Island:  177
Wailea/Makena,Maui : 135
Kailua, Oahu:  114
Hanalei, Kauai : 80
Kapalua, Maui :  79
Kakaako,Oahu: 64
Koloa, Kauai:  61

Data from Title Guarany Escrow

Real Estate in the News

 Yes, A House Is Still A Good Investment

If you’re thinking about buying a new home but have reservations in the current market, don’t be deterred—there’s still good reason to start building home equity. From a hedge against inflation to tax benefits, check out all the advantages of buying today.

Courtesy of Forbes

Local Happenings

sunday, oct 16

Kokua Kailua Monthly Stroll

Kokua Kailua, the popular monthly village stroll on Alii Drive, happens one Sunday each month from 1pm to 6pm. Kona’s Historic Kailua Village closes to vehicular traffic and becomes a festive, pedestrian-only outdoor marketplace that makes for a fun family-friendly day.

Learn more. 

Saturday, oct 22

15TH ANNUAL RUN FOR THE DRY FOREST 2022

After two years of Covid-related cancellations and postponements the Run for the Dry Forest (RDF) is back at Pu'uwa'awa'a!
RDF is a 10km run, 5km run/walk and 1/4-mile keiki run.

Learn more or register here.

Lifestyle Tips and Tricks

What You Should Be Planting in the Fall

This may be a little known fact, but fall is the key planting time for a beautiful garden. It's also the key time to give your plants one last manicure before winter sets in. Now that summer's heat is cooling off, it's time for you to switch out your summer annuals for fall appropriate annuals and plant spring bulbs before the first frost.

Courtesy of Southern Living

Best Places to See Fall Foliage in the U.S.

It's time for sweater weather, hot apple cider, and best of all, seeing the leaves change from the lush greens of summer to the bright golds, oranges, and reds of autumn. Check out the 21 best places to see fall foliage.

Courtesy of Travel + Leisure

12 Accessories to Take Your Home From Summer to Fall

What if we told you that you could transition your home decor from summer to fall without a single pumpkin or acorn? The key to achieving a warm, cozy and decidedly autumnal home is infusing the space with color, texture and textiles that reflect the season.

Courtesy of HGTV

15 Best Fall Books of 2022 You Have to Read This Season

As the heat begins to break, the trees change into their autumnal finest, and we're looking to swap our best beach reads for a new book to usher in the season. Add these books to your shelf, stat.

Courtesy of Good Housekeeping

25 Easy Pumpkin Carving Ideas

Carve your own funny, scary, or beautiful pumpkin carvings this Halloween. Your whole family will find plenty to love about these easy pumpkin carving ideas—from a classic smile to a flame.

Courtesy of Better Homes & Gardens

Featured Listings

Queen Liliuokalani Village

74-5156 Kialoa Place

6 BD   4BA   2280SF   $800,000

Waikoloa Village

68-3831 Lua Kula Street, Unit I208

1 BD   1BA   492SF   $325,000

Shores at Kohanaiki Resort

73-4810 Hinahina Road, Unit 10

3 BD   4BA   2252SF   $4,699,000

Bayview Estates

78-7035 Ola Mau Street

3 BD   4BA   2317SF   $2,800,000

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

Reach out to chat!

Mahalo!
Daisuke 'Kai' Ioh

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

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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