2013 was an active year for real estate on both the national and local scene. As we enter into these early weeks of 2014, we have the necessary MLS data coming in to take a look back at 2013 to see the ups and downs of the year.
Watching prices climb in many markets was scary for some buyers, but for many homeowners, who were seeing appreciation in their properties for the first time in years, the upward trends were a relief.
Because the Big Island of Hawaii is a very diverse island comprised of many sub-markets, the reports are mixed for different areas. Since I specialize in the Central Kailua-Kona market, I tend to concentrate more on numbers and real estate trends for this area of the island.
Overall, the real estate market in Kailua Kona performed well in 2013 with increased activity in residential, condominium and vacant land transactions. Year-over-year, there were 20% more vacant land sales, 19% more residential sales and an almost 10% increase for condominiums. While most of my transactions for 2013 were residential, I expected more growth for condos. I suspect we’ll witness more condo sales in 2014.
In terms of price appreciation, even in just the Central Kailua Kona area, different neighborhoods performed quite differently. Overall, the average Sold price for residential properties for 2013 was a modest 7.53% increase. To compare, Pualani Estates performed somewhat better with a 9.65% increase, while just down the road at Ali’i Heights the increase was just 5.52%. For condos, the average Sold price increased 7.68%, while the average sold price for vacant land showed just a 2.79% increase.
Generally, I think we’ll continue to see a healthy demand and continued price appreciation for most of this area through 2014. For those thinking about selling a property, inventory levels in this area still remain on the low side, meaning less competition. For those considering entering the market a buyer, 2014 should still be a good time to do so while pricing and interest rates remain very attractive.
For a more detailed market analysis for Central Kona, North Kona or for a specific neighborhood in West Hawaii, please contact me at 808-989-7070 or online:
Happy New Year!