Hawaii Big Island Style

Aloha, July!

Bon Dance | RP Tax | Loco Moco

As summer in Hawaii is winding down as school starts in early August, we're also getting ready for the excitement of Kona Coffee harvesting!  I can't wait to taste the new crops.

Japan Airlines has resumed its direct Tokyo-Kona flights for summer, and they are packed! We're crossing our fingers for Hawaiian Airlines and Japan Airlines to resume their regular daily flights soon, just like pre-pandemic times.

Summer in Hawaii is Bon Dance season. Every weekend from June through Labor Day,  neighborhoods turn out at Japanese Buddhist temples across the Islands to celebrate the timeless tradition. I had honor to co-chair this years dance at Kona Daifukuji. It was such an exciting experience to see the triumphant return of the Bon Dance at Daifuku Temple after a hiatus of three years. 
There are plenty of Bon Dances still remaining in Hawaii this summer.. 
Here is the Bon Dance Schedule.

KONA's July 4th Celebration commenced with a lively parade along the scenic Alii Drive, followed by a spectacular fireworks display. Recently, there has been talk about possibly replacing the fireworks with a drone show. While some may find drones safer, personally, I adore the nostalgic sound of fireworks as it always reminds me of the essence of summer.

Last week, the first hurricane of the season, Calvin, passed by the Hawaii Islands. While the east side, Hilo, experienced heavy rainfall, the west side of Hawaii, Kona, sheltered by two 14,000 ft mountains, remained unaffected by wind or rain. It's a reminder that the area and elevation significantly influence the lifestyle here. 
Today's weather is delightful with abundant sunshine and a high of 79 degrees in Holualoa. It's incredibly comfortable

Yes, it's that time of the year again. The first half of the Real Property Tax is due on August 21st. For information and payment, visit the County RP Tax website at hawaiipropertytax.com 
For those who are full-time residents, don't forget to file your home owner exemption. It only needs to be done once.

It's been a year since the crazy hikes in 30-year mortgage rates. Starting at 3% and shooting up to 7% The real estate market here is still tight with limited inventory. The highlights from the first half of the year are below.

Here is BIg Island JULY RECAP video. shot and edited by Kai.

Kai's Market Update

JULY 2023

National Trend

Existing-home sales dropped 3.3% in June to a seasonally adjusted annual rate of 4.16 million. Sales trailed off by 18.9% from one year ago. 

At $410,200, the median existing-home sales price for June was the second-highest price ever recorded – since January 1999 when NAR began tracking the data – and 0.9% less than the all-time high from one year ago of $413,800. It was the third time the monthly median sales price eclipsed $400,000, joining June 2022 and May 2022 ($408,600).

At 1.08 million at the end of June, the inventory of unsold existing homes was unchanged from the previous month, or the equivalent of 3.1 months' supply at the current monthly sales pace.

Fannie Mae’s home price appreciation forecast, which is updated quarterly, envisions 3.9 percent annual home price appreciation during the fourth quarter of 2023, with a gradual decline to zero percent by Q2 2024. The latest forecast doesn’t envision a significant decline in national home prices until the final three months of 2024 when prices are expected to post a 0.7 percent annual decline. Which is negligent considering the recent appreciation. 

Funnie Mae predicts this year's average 30 year mortgage rate to be 6.6% up from 5.5% in 2022. Further it predicts a drop to 6.1% in 2024. 

Link to Fannie May Forecast

Hawaii State Stats

Homes | Condo Median Price

Oahu : $1,050,000 | $500,000
Maui:   $1,150,000 | $840.000
Kauai:  $1,100,000 | $685,000
Kona:   $1,200,000 | $555,500

Kona Market

Single Family Home
-The median price has once again hit a record high at $1.2 million, matching the February 2023 figure.

-DEMAND: Pending sales decreased by 30% compared to the previous month but saw an increase of 8.2% compared to the same time last year.

-SUPPLY: The number of active listings is 10% lower than a year ago but has increased by 11% since last month. There is a 2.3-month supply of homes available.

-Overall, the number of active listings is still at less than 50% of the pre-pandemic level.

July Trend

The Supply( inventory) shrunk again this month.

Kona Condominiums

Condo Market
-The median price rose to $555,000, a 2.7% increase from the previous year.

- DEMAND: Pending sales experienced the most significant drop in the last three years, decreasing by 37%.

- SUPPLY: The number of active listings increased by 23.3% compared to the same time last year, a significant 76% increase compared to last month.
-There is a 1.6-month supply of condos available.

July Trend

Supply(inventory) has increased steadily in last few months. But it is still around 30% of pre-pandemic level.  The number of pending sales slid this month.

Kona 2023 First Half Recap

Kona Single Family Home Market

40.2%

Cash Transaction (-1.3% compared to the first half of 2022) 

44.4%

Properties closed at asking price or higher(+16.3% compared to the first half of 2022)

2.3 Months

Monthly Supply (+0.9 month compared to July 2022)

22 Days

Median Days on Market of SOLD Properties (+12 days compared to the first half of 2022)

As we review the first six months of the Kona home market, we can see the impact of the Federal Reserve's aggressive rate hikes from the previous year. Throughout the latter part of 2022, the median price for both homes and condos remained relatively flat. However, the beginning of 2023 saw a notable acceleration in the median home price, primarily due to a further drop in inventory levels.

At the start of the year, the monthly supply of homes stood at 4.0 months, indicating a somewhat balanced market. However, as demand continued to outpace supply, the inventory dwindled, and the months of supply declined to 2.3 months.  The monthly supply for condo also declined from 2.9 to 1.6 months. The six-month worth of inventory is typically considered a neutral market.

The data on median days on market for sold properties also tells an interesting story. Homes are selling quickly, with a median of just 22 days on the market before finding a buyer. On the other hand, active listings are spending a median of 97 days on the market, which is significantly longer. This suggests that while the inventory remains slim, properties that are not priced appropriately are taking longer to attract buyers.

 As we move forward into the second half of the year, it will be crucial to monitor how market dynamics continue to evolve and adjust strategies accordingly.

Big Island Resort

Hawaii In the News

Live Like Hawaiian Royalty: Amazing Retreat in Hilo Available for $2.5M

Built in 2002 by late San Francisco architect David Morton, the 2,696-square-foot, three-bedroom home in Hilo was recently listed for $2,495,000 by Compass' very own, Rebecca Hirsch-Keliihoomalu.

The minimalist residence is surrounded by waterfalls, rocky bluffs, and conservation land that was once home to Hawaiian royalty. In 1861, William Reed purchased a 26-acre enclave along the Wailuku River from King Kamehameha IV.

Courtesy of realtor.com

Home of The Loco Moco for Sale

Cafe 100, the birthplace of the famous Loco Moco, may soon see changes in its rich history. Currently, the building that houses this iconic eatery is up for sale for $2.9 million. While the restaurant's future remains uncertain, we are hopeful that the legacy of Loco Moco will live on.

Cafe 100 has been a beloved community hub in Hilo since its inception in the early 1940s by founder Richard Miyashiro. There are many people who claim to have invented Loco Moco, but it is generally agreed that around 1949, either the Cafe 100 or the Lincoln Grill (both in Hilo, Hawaii) originated the first dish of Loco Moco.

The Loco Moco, a delicious and hearty dish, perfectly exemplifies the fusion of cultures in Hawaii. Comprising a bed of steamed rice topped with a succulent hamburger patty, a perfectly cooked sunny-side-up egg, and rich brown gravy, this iconic dish has evolved through various adaptations while staying true to its essence. Its name, "Loco" Moco, is said to have been coined by a group of teenagers who simply found it irresistibly delicious. The nickname of the first boy to eat this concoction was Loco (“crazy” in Portuguese and Hawaiian pidgin).  Moco rhymed with loco and sounded great, so Loco Moco became the name of the dish.

While the future of the restaurant may be uncertain, let us cherish the heritage of Loco Moco and the warm ambiance that Cafe 100 has provided.

Local Happenings

August 4th

Free National Park Day

The National Park Service will have five entrance fee-free days in 2023 that provide free admittance to all national parks for everyone. 
Great time to visit Kilauea Volcano and Honaunau National Park. 

Click Here for More Info

WEDNESDAYS IN  JULY & AUG

Waimea Midweek Farmers Market 

Located at the historic Pukalani Stables on famous Parker Ranch, this unique farmers market showcases local produce from local farmers & ranchers,  artisanal foods from passionate chefs, and talented artists.

Click Here for More Info

JULY 28-30

HILO Orchid Show

Each year the Hilo Orchid Society stages the largest and most comprehensive orchid show and sale in the state of Hawai`i.  The show takes place at the Edith Kanaka'ole Stadium in Hilo.

Click Here for More Info

Lifestyle Tips and Tricks

Is the Remodeling Boom Over - or Just on Pause?

A slowdown in renovation projects is settling in after a pandemic-fueled boom, but there are plenty of reasons why the pullback may not last long. 

Courtesy of Realtor Magazine

2023's Top Outdoor Living Trends

"New products are enhancing the outdoor 'gathering story' - pizza ovens, fire pits, outdoor movies, games, scenes," according to a new study just published in May. 

Courtesy of Forbes

Four Location Factors to Consider For Real Estate Investments

When it comes to real estate investing, statistics can serve as a starting point - yet there's much more legwork to carry out when choosing the best spot.

Courtesy of Forbes

Wanted: More Housing!

Here are the 10 cities with the most - and the fewest - homes for sale right now.

Courtesy of Realtor.com

Featured Listings

Bayview Estates

78-7005 Mololani Street

4 BD   4 BA   2595 SF   $3,100,000

Holualoa

75-6040 Alii Drive, Unit 616 - IN ESCROW

2 BD   2 BA   1170 SF   $670,000

Kona Palisades

73-1230 Kaiminani Drive- IN ESCROW

4 BD   3 BA   2042 SF   $999,000

Keauhou Estates

78-6875 Kuhinanui Street

4 BD   4 BA   2826 SF   $3,500,000

Sunset View Terrace

77-6472 Kilohana Street

3 BD   3 BA   2276 SF   $1,699,000

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

Reach out to chat!

Daisuke 'Kai' Ioh

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

Kai's Bio

Founding Member - REALM

Top 1.5% of US Real Estate Professionals, 2023

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.