August is often one of the slowest months for sales here in Kona.This month sales were down a bit since last month but no where near the lows of the recent past. Foreclosures and short sales continue to occur but they do not dominate the market.
- After 5 months of over 40 closings a month we slipped back a bit this month to only 36.
- Foreclosures and Short Sales made up 1/3 of the sales. Well priced non distressed properties continue to make up the majority of sales.
- Escrows are holding steady at over 100.
- Only 14 of the 36 sales were cash sales so banks are definitely making loans for new purchases including condominiums and vacant land.
- Inventory is down across the board but still just above 1000 properties total. This is the next barrier I’d like to see broken.
- Kukio Resort had Kona’s highest priced sale at $9.5 million and Kona’s highest price foreclosure sale at $3.1 million.
Matt Beall, PB
September 4, 2009
Erik, do have any sense of what percentage of the transactions were cash in the previous months? It seems like slightly more transactions with conventional financing are showing up…
Matt Beall, PB
September 4, 2009
Erik, do have any sense of what percentage of the transactions were cash in the previous months? It seems like slightly more transactions with conventional financing are showing up…
Erik Hinshaw R(S)
September 4, 2009
August was similar to May and June with approximately 62 to 65% of sales here in Kona getting traditional financing. July was a concern as only 53% of the sales were conventionally financed; a drop of 10%. The fear was that banks were turning off the taps again just as homes started selling. It is great to see that was not the case. What it may have been are those conservative buyers, who traditionally pay with cash, may finally sense that we are at a bottom.
Erik Hinshaw R(S)
September 4, 2009
August was similar to May and June with approximately 62 to 65% of sales here in Kona getting traditional financing. July was a concern as only 53% of the sales were conventionally financed; a drop of 10%. The fear was that banks were turning off the taps again just as homes started selling. It is great to see that was not the case. What it may have been are those conservative buyers, who traditionally pay with cash, may finally sense that we are at a bottom.