Hawaii Big Island Style | February 2023 Newsletter

Happy February!

Aloha!
We are well underway for 2023. February started off with a trip to Japan due to my father's passing. I want to express my sincere gratitude for the kind support and encouragement we received. Mahalo.

Though the month of February is a short one, it is filled with lots of love and special moments. Please read on for key real estate updates, and local events curated just for you!

Kamakura, located about an hour south of Tokyo, is my parent's hometown in Japan and was once an old capital. It boasts of numerous famous and breathtakingly beautiful temples and shrines, with their intricate architecture and designs being truly awe-inspiring.  

The most remarkable aspect of these temples and shrines is the traditional technique used to build them, without the use of metal and nails. 
Temples and shrines in Japan welcome everyone, regardless of their religion. Here is etiquette tips when visiting shrines and temples. 

I'm asked daily about the state of the real estate market. The answer is, it varies based on the area and price range.  Proper pricing and preparation are crucial to success when listing the property. This new listing in Kona Vistas sold in 4 days, for higher price than Seller originally expected. More on the Big Island Real Estate market below!

The Humpback Whale Season is currently in full swing. If you sit by the KONA Coast, you should be able to spot a few whales. Despite their size in comparison to the vast ocean, they are still very visible if we know what to look for. Since we typically do not see the whole whale, whale watching can help stimulate our imagination! Whale Watching is very relaxing!

Keep reading to stay up-to-date with the latest updates and trends in the real estate market. If you're interested in any of the topics mentioned, be sure to watch my February Big Island video, which I captured mostly with my iPhone.

KAI's Kona Market Update

February 2023

National
Existing-home sales in the Northeast retracted 3.8% from December to an annual rate of 500,000 in January, down 35.9% from January 2022. The median price in the Northeast was $383,000, up 0.3% from the previous year.

In the Midwest, existing-home sales slid 5.0% from the previous month to an annual rate of 960,000 in January, declining 33.3% from one year ago. The median price in the Midwest was $252,300, up 2.7% from January 2022.

Existing-home sales in the South rose 1.1% in January from December to an annual rate of 1.82 million, a 36.6% decrease from the prior year. The median price in the South was $332,500, an increase of 3.4% from one year ago.

In the West, existing-home sales elevated 2.9% in January to an annual rate of 720,000, down 42.4% from the previous year. The median price in the West was $525,200, down 4.6% from January 2022.

Hawaii  2023
The home sales in Hawaii Islands( four Counties) are down in average 48.1% Year over Year  while the median prices are down 5.6% in average. The median prices are still up from Year Ago in the Big Island. 
Real Estate market is Hyper Localized. 
 
Latest Hawaii State Real Estate Data.

Kona Single Family Home Market

This month, the Year-over-Year median price of single-family homes has increased significantly, which can be attributed to the limited sample size. It usually takes a few months to obtain reliable sales data. Please stay tuned for my March updates on Instagram, etc.
Inventory has decreased 9% this month, coinciding with the peak winter season on the Big Island, which traditionally leads to an active real estate market. The current inventory levels are still around half of what they were before the pandemic. 
Properties that possess favorable attributes and are priced reasonably tend to sell rapidly. However, there is an increasing trend of "price reductions" and "withdrawn listings," which I will delve into later.

February Mid Month Trend

The number of pending sales is unchanged and the number of active listing has gone down this month.

Kona Condominium Market

Compared to the previous month, the condo median price has decreased, but it has increased by 1.6% compared to the same period last year. However, due to the limited sample size, early year sales data may not be reliable.
Although the inventory level has increased, it is still below 40% of the 2019 level. Additionally, pending sales have increased this month, indicating a busy winter season.
Tight supply still persists.

Mid Month Trend

The monthly supply of active listings has increased to 3.4 months due to a reduction in the sales rate. The 6 months' worth of supply is considered neutral. 

IS The Market Becoming Harder To Sell??

Days on the Market

In contrast to 10 months ago, when properties sold quickly and often at full price or higher, we are now witnessing increasing trend of unsold properties. One noticeable difference is the extended duration of time properties remain on the market (DOM=Days on the Market). For instance, in Kona, the median DOM for single-family homes sold within the last 90 days was 19 days, while for condos, it was 12 days. However, for active listings that are currently on the market, the median DOM for single-family homes is much longer 81 days, and for condos, it is 45 days. And they are still on the market. 

Price Reductions

A common strategy used when a property doesn't sell is to implement a price reduction, which us realtors often refer to as a "price improvement." It's become increasingly common to see notices of price reductions in the MLS on a daily basis. Listings tend to garner the most attention during the first 14 days, but interest from potential buyers often dwindles after that time frame. In an effort to navigate the market, sellers may choose to reduce the price of their property or withdraw it from the market altogether. 
The fact that good number of sellers withdraw listings from the market indicates that many of them are not in a position where they have to sell. This is in contrast to the market sentiment in 2009, when a significant number of sellers had no choice but to sell.

Most potential buyers in Hawaii are motivated by their wants rather than their needs, while many sellers in Hawaii are not under any pressure to sell their properties. Consequently, achieving market equilibrium remains a continual process.

The Big Island RESORT Market

Real Estate in the News

The Top 2023 Bathroom Trends

"Bathroom design in 2023 will continue to build on themes emerging since 2020, including clean lines, easy-maintenance materials, and heavy doses of natural colors. At the same time, an underlying current is shifting our view of bathrooms from task-focused spaces to rooms designed for comfort.
According to Jean-Jacques L’Henaff, a design expert with LIXIL Global Design, the bathroom has transformed into a space focused on health, wellness, and relaxation. At the same time, larger home design trends are influencing aesthetic styles. As a result, personalization is driving a lot of the design choices, encouraging homeowners to create comfortable rooms with custom bathing experiences."

Courtesy of Better Homes & Gardens

Local Happenings

Saturday, March 11

The 28th Annual Kona Brewers Festival

The 28th Annual Kona Brewers Festival is back in its original form, happening March 11th, 2023, from 4-7 pm, at King Kamehameha's Kona Beach Hotel lu'au grounds. Cost: $100 per person. This beloved event that sells out every year is hosted by The Ke Kai Ala Foundation, and is a community celebration and fundraiser that benefits Hawai’i programs supporting environment, culture and youth.

See here for more information on the festival

March 24-26

Kona Steel Guitar Festival

The first annual Kona Steel Guitar Festival is coming to the Outrigger Kona Resort and Spa in 2023 in Keauhou. The Kona Steel Guitar Festival is a new event developed to coincide with the relocation of Keola Beamer's Aloha Music Camp from Kapa‘a, Kaua‘i, to Keauhou

See here for more information

Lifestyle Tips and Tricks

Trend Watch 2023: What's Hot for Homes

Comfortcore, color, contrast, and more: quick hits on today's top interior styles to watch from an Atlanta-based staging professional.

Courtesy of National Association of Realtors

Get Restaurant-Quality Meals at Home

Elevate your eat-at-home game.

Courtesy of Better Homes & Gardens

Featured Listings

Kona Vistas

76-4392 Leilani Street

3 BD   3 BA   2169 SF   $1,550,000

This home in Kona Vistas went into escrow in 4 days. Great offer. Everyone is excited! 
Below is the Sneak Preview Video that Emil and I created. 

North Kona

78-261 Manukai Street, Unit 806

2 BD   2 BA   1500 SF   $875,000

Beautiful 2 Bed/ 2 Bath Golf Course View Condo. Each bedroom has its private lanai. Ample living space with vaulted ceilings. The spacious lanai off the living room has a wet bar and great views of the golf course. The kitchen is tiled with eat-in space. The unit has an STVR license.16-acre Kanaloa has three swimming pools, each with a spa, two lighted tennis courts, and six BBQs located around the property. 

Coming Soon!

Kona's Premier Subdivision- Keauhou Estates
78-6879 Kuhinanui St, Kailua-Kona, HI
Brand new construction due to complete in June, 2023. There may be an opportunity to add personal finishing touches. 
4 Bedroom | Pool | Panoramic Oceanview | $3.5M

Bayview Estates
78-7005 Mololani St, Kaiua-Kona, HI
Brand New Construction

Beautiful modern custom home due to complete in May of 2023. Please contact me for more information. Full 3D rendering package will be available soon. 

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
www.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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