It appears that we may be hitting the bottom for home sales in Hilo and Puna districts. After large drops in sale prices in late 2008 and early 2009, the decrease moderated in the 2nd half of 2009. Recent contracts over the past couple of months seem to indicate that we are at or near the bottom of this market cycle. Of course if the economy suddenly got much worse, there could be some additional decreases in sale prices.
Hilo Residential Median Sale Price 1/1/2009-6/30/2009:$256,250 (70 Sales) and 7/1/2009-12/31/2009: 277,000 (101 Sales) Homes that have a contract date of 11/1/2009 to 1/11/2010: Median List Price: $280,000
Puna Residential Median Sale Price 1/1/2009-6/30/2009: $180,000 (202 Sales) and 7/1/2009-12/31/2009: $175,000 (239 sales) . Puna homes that have a contract date of11/1/2009 to 1/11/2009: Median List Price: 174,700.
Most homes have a sale price within 4% to 5% of list price. Indications are that large drops in price have stopped in Hilo and Puna. Now the cost of buying an existing home is typically much less than building a new home. Foreclosures and short sales continue to keep prices down in some neighborhoods.