Kona real estate update

November 7, 2009 by
Filed under: Hawaii 

konarealestateOn October 16, 2009, an article in the San Francisco Chronicle featured Kona and the western side of the Big Island as a place of adventure and beauty.  Aimed mostly at those people looking to purchase a second home during these times of depressed prices, Jeanne Cooper claimed that the market was “showing signs of new growth, which make it even more worth your while to linger here.”

hawaii-real-estateHowever, “The Big Island has taken one of the biggest hits among Hawai’i counties in terms of the economic recession, according to an analysis by local economist Leroy Laney,” reported Andrew Gomes, a staff writer for the Honolulu Advertiser who assessed the Big Island economy as “bleak” in his September 23, 2009, article.  Gomes wrote that “the value of Kona Hawaii real estate is forecast to be down 4 percent, along with reduced property tax collections after six straight years of more than 10 percent increases.”  While the dropping cost of properties comes to hurt the pocketbooks of property owners, the reduced taxation has helped ease the immediate payment burden of many Kona residents.  The article also mentioned the almost halt of property construction in the Kailua-Kona area.  According to the forecast, building permits are down over forty-five percent and that there is only one housing project under construction.

The Honolulu Star-Bulletin also offered commentary on Leroy Laney’s presentation at the 35th Annual First Hawaiian Bank Economic Outlook Forum.  Reporter Erika Engle quoted Laney as saying, “Residential real estate on the island has seen falling prices and sales due to low buyer confidence, tighter financing “and expectations that prices may fall further.”  This comes as a warning for real estate in Kona and their owners who must buckle down to see further reductions in their property values.  On a better note, Jack Suderhoud, a professor at the University of Hawaii at Manoa, gave some future inspiration.  He announced, “I see us bouncing along the bottom of the economic cycle for the last half of 2009 with a modest recovery in place by mid-2010.”  This would be a significant boost for Kona homes for sale that would see a slow but stead recovery of housing prices from 2010 on, should the forecasts be correct.


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