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Before diving into the market trends... here is a brief overview of last week's U.S. economic activities. On July 30, Federal Reserve Chairman Powell announced that the policy rate would remain at 5.25-5.5%, while also suggesting a potential rate cut in September. The market expected rate cuts in both September and December, leading to a decline in long-term U.S. interest rates, a weaker dollar, and rising stock prices. On Friday, August 2, the U.S. employment statistics for July were released, falling short of market expectations. This led to a sharp decline in U.S. stocks, triggering a rapid drop in bonds and mortgage-backed securities. Each month, we publish our data flipbook, featuring valuable insights such as Historical Median Price, Activity by Price Ranges, Active/Pending Ratio, and Inventory. We specialize in the west side of the Big Island. Please email us if you have any questions or if you’d like to discuss the market in your neighborhood! |
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| Kona Market Update - August 2024 |
| The real estate market in Kailua Kona remains dynamic, with notable changes in both the single-family home and condominium sectors. Despite fluctuations, the median price has maintained record high levels this year. This month saw an approximate 12% increase compared to last August. The market is active, with only 2.5 months of inventory if sales continue at the current pace, indicating a seller's market. The number of properties for sale remained unchanged from last month but has increased by over 35% year-on-year. Inventory is still only half of what it was pre-COVID. The slight sluggishness in contract signings in July (down 14.3%) is concerning. The inventory is still low with only 2.7 months worth of inventory if current pace continues. Prices remain on an upward trend, with a 20% increase compared to the same period last year. However, the supply has significantly increased. It feels like the market is shifting from a seller's market to a more neutral stance. The impact of recent natural disasters in the U.S. (including Lahaina) has caused a spike in condominium insurance premiums. Additionally, many condominium associations are struggling with the demand for upfront payment of these premiums. |
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Here are list of listings that hit the market in last 2 weeks. |
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| Kai's Big Island Video | July 2024 |
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| | | Oahu : $1,120,000 | $530,000 Maui: $1,350,000 | $980,000 Kauai: $1,092,000 | $867,000 Hawaii(Kona):$1,307,085| $665,000 source: Title Guaranty Escrow |
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❖ Year over year, the median single-family-home sales price and median condo/co-op sales price were up 4.1% and 2.6% respectively: Both hit new highs. ❖ The supply of listings for sale rose 23.4% year-over-year to the highest monthly count in almost 4 years (though only slightly higher than in summer 2021 & 2022). ❖ The number of sales declined 7.4% from May and 13.4% from June 2023, while price reductions in the 2nd quarter jumped 52% year-over-year. |
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| By Friday afternoon, Compass office was buzzing with loan officers bringing in special bulletins announcing "declining mortgage rates." Rates, which were around 7%, dropped to under 6% in just one day. The 30 year mortgage interest rate is still 5.99%, but it is expected to be around 5% by the end of this year. This could potentially impact the housing market, as both potential sellers and buyers are currently on hold due to high interest rates. This could change if rates continue to fall. |
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What Determines Mortgage Rates? |
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| What are the determining factors of mortgage interest rate? We often hear that the mortgage rate is linked to yields of long term bonds and inflation. Here is the basics. Federal Reserve (FED) Rate: The FED sets the short-term interest rates for banks. When the FED rate goes up, borrowing money becomes more expensive for banks. Banks pass these higher costs onto consumers, leading to higher mortgage rates.
Inflation measures how much prices are rising over time. Higher inflation means money loses value quicker. To keep up, lenders increase mortgage rates to ensure they get a good return on their money
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| | | 3 BD 3 BA 2276 SF $1,399,950 |
| Experience the ultimate Kona lifestyle in this stunning Kama'aina property, nestled in the highly sought-after Sunset View Terrace subdivision on Kilohana Street. Recently renovated with modern touches, this gem boasts breathtaking coastline, ocean, and ocean-horizon views from its elevated position above Kailua-Kona. Picture yourself unwinding and enjoying the quintessential "Kona's Best" sunsets from almost every room in the house.Ideal for families, the upstairs area offers 2 bedrooms and 2 bathrooms, a fully equipped kitchen, and indoor and outdoor dining spaces. Downstairs, you'll find a separate living area with 1 bedroom, 1 bathroom, and a kitchenette - perfect for accommodating extended family or friends... |
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Maximize the value of your home with KE Team Hawaii. |
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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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