Short sales, REO’s and luxury property auctions are driving down prices in Kona despite low inventory.
Seventy-nine homes sold in the first quarter of 2010 here in Kona as compared to only 42 in the same period last year. Yet while escrows are up, and inventory is down, the median price for homes in Kona actually dropped 12.75% to $390,000.
What exactly what can you get for the median price here in Kona? How about an ocean view 2-bedroom home (MLS# 230809) with a guest cottage right in town priced at $399,000? Sounds like a deal to me.
Enjoy whale-watching and ocean views from the interior of this Kona home (MLS# 230809), well-priced at $399,000
So what’s driving prices down with all these buyer’s in town?
- Short Sales* – Many short sales that have been dragging on are finally closing. These contracts were written often months ago when the economy wasn’t looking quite as rosy.
- REO* – REO’s continue to often be bargain-priced as banks look to get rid of their foreclosed properties.
- Luxury Property Auctions – On the upper end, the resort neighborhoods of Kukio and Hualalai held auctions to move some property. Some of these multi-million dollar homes sold at more than 50% off their list prices.
*Taken together, short sales and REOs counted for half the home sales in Kona this quarter.
With all this going on, contact me to help you find your Kona deal.