How Big a Part of Our Hawaii Market Are Short Sales and Foreclosures?
We sometimes forget the progress this market has made over the past two years. We took a look at a few market segments to see how many short sales and foreclosures are out there. Seems like over the past few years these types of listings were dominating the market, and at some point in various neighborhoods and condo complexes, that’s all there was – short sales and foreclosures.
© Copyright Dan Fumento 2012
A lot of that distressed inventory has apparently been rung out of the market. For this study, we looked at homes and condos in the tax map area of 3-7, essentially Kona from the Palisades to just South of Keauhou. Then, we looked at homes and condos in tax map area 3-6, the resorts, Waikoloa Village, and Kamuela. Finally, we looked just at condos in areas 3-6-8 and 3-6-9, Waikoloa, Mauna Lani, and Waikoloa Village.
As you can see from the graph above, the results are remarkably similar. While we knew the distressed property was diminishing, it was surprising to see what a small part of the market it is at present. There may be shadow inventory out there waiting, but at this point in time, distressed inventory is not dominating the market, although it it still affecting prices. In our opinion, just another sign that this market is improving.