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Latest Grigg’s Big Island Market Report

Here is the current Market Report brought to us by Micheal Griggs RB. If you would like a full copy of the report please call or email Eddie Underwood at 808-345-9797 or eddie.underwood65@gmail.com

The purpose of the Griggs Report is  to provide the reader with accurate market data that gives an up-to-date view of the real estate market trends in N. Kona and Hawaii Island. Price Direction and Rate of Price Change are important indicators most are looking for. However price data is based on past sales. Current market inventory levels and pending sale trends show more current trends and give clues as to future price direction and  rate of change. The report uses the “Pending Ratio”, the ratio of Pending Sales to Active Listing Inventory as a measure of this current supply/demand dynamic. By following the Pending Ratio’s  over time the report uses charts to illustrate the trends. The higher the ratio number, the tighter or stronger the market demand versus supply.   

  1. The latest data from Hawaii Information Service for N. Kona residential market continues to show a tightening market. Inventory up slightly to 117 for homes priced below $4.0M. Pending sales have back off a notch to 108 from 14 two weeks ago. This has caused the Pending Ratio to decline  to 92. It is likely that the record low interest rates plus the relatively virus free environment has contributed to this tight residential market. This is a nation-wide trend with Kona being above average. Median price for current 12 months sales has reached $701,000. In January that number was only $648,000. This is quite a remarkable change in the residential market in a short period of time.  
  2. The price range data at the top of page 2  shows all but the over $4.0M price range are in or above the Sellers’ Market category. In the over $4.0M residential market, the average price of the two pending sales in $26.9M due to one escrow with a pending price of $45,000,000. I don’t think we have seen that before?
  3. The Hawaii Island  Residential Pending Ratio  has rebounded sharply in the last two months. East and West Hawaii both increased. The Pending Ratios are all above the Buyer’s Market category.
  4. The Charts 5 and  Chart 6 related to the distressed property will be updated on a quarterly basis.
  5. The Condo stats are showing the effects of lack of tourist traffic.  Year/Year Sales are off  22%. The good news is the situation is improving.There is an increase in Pending Sales.Prices are holding up well.
  6. The Land  stats are showing the effects of lack of tourist traffic and lack of inventory. Unlike condos the prices are showing a declining trend year over year. One interest stat that we have not seen since the recovery began is the Pending Ratio which has final broken into the Neutral market category. The tight residential market with its lean inventory and very high prices has made the land market more attractive. Buying land and building new is making sense economically.
  7. Page 6 is the Pending Ratio Summary page. This page offers a quick glance of the Pending Ratio trend for N. Kona Res.,  Condo, Land and  Hawaii Island.  This table shows improvement from last year and also since last month. The higher price ranges of the Residential  market appear to be the most improved.
  8. The Page 7 Kona Residential Price chart since 1972 is updated with the new 2019 data. This is based on a data pool of similar homes many of which are either new sales or resales over the years. The total number of sales that make up the data pool is over 7,644 in the 23 subdivisions in the study. The result shows the 2019  average price was  (plus six percent +6%) or $650,900.      


The Griggs Report is published semi-monthly by Michael B. Griggs, PB, GRI