Aloha, Lance Owens (RS) here with LUVA Real Estate bringing you our monthly sales report. Talk about some crazy numbers, let's start with......
"Absorption Rate": The term absorption rate refers to a metric used in the real estate market to evaluate the rate at which available homes are sold in a specific market during a given time period. It is calculated by dividing the number of homes sold in the allotted time period by the total number of available homes
With that said, it is generally understood that anything under 15% is a buyers market, anything above 20% is a sellers market. Lets roll back a few years, and we are going to skip 2020. Back in 2018 our absorption rate was 14%, so it slightly favored buyers, FF to 2019 and it hovered around 20%, so it was slightly leaning towards being a sellers market. Let's talk about today, TODAY we are at just over 92%, I think we can safely say it is a SELLERS MARKET (yes I am yelling). I know being a sellers market isn't breaking news, but the rate at which it is - a sellers market - I find very breaking news! 92.64% for North Kona, if you take a look at the resort areas of South Kohala they are running a distant 2nd at 71% ( like how I throw that number around like its nothing - lol, 71 is amazing in itself) and if I single out Condos - Island wide (Big Island) they are at 142%
Something I always find interesting when you see real estate reports around the State, they always lump them together by island, so lets put this into perspective. Kona Districts cover a land mass of 824 miles, Oahu island encomposses 597 miles, Maui 727, and Kauai 552 .... So just Kona itself is bigger than any of the other islands. You are probably asking how big, the BIG Island is - it is 4,028 miles, big enough to absorb all the other islands and still have land left over. I am just pointing this out, because when you lump the entire island together as one market, you are not getting a clear picture of the market.
Lets get back on track, North Kona (Kailua-Kona), here are few more interesting numbers: 139 total sales for June, 81 of those are listed as cash or 1031 exchange. Of the 139 sales, 30 were sold in Zero days, 62 were sold in under 5 days. Everything that sold for over $1.6m were cash (18 sales) including a $12m, $22m, $24m sale.
Single Family Homes - number of homes sold, up 57.5% YTD. (month over month up 15.9%). Median Price is up 23% @ $926,250 (YTD)
Condos - number of condos sold up 143% YTD . (month over month 146%) Median Price up 16.56% to $405,000
Vacant Land - up 180% YTD (month over month up 700% ) Median price up 68% to $485,000.
For the complete report, visit my website KonaHomeTeam.com
A little bit about the author: Lance Owens (RS) has been a Realtor on the Big Island since 2004, he was president of the association in 2018, currently serves as a Director for the State Board of Realtors and is the 2021 RPAC trustee along with being the 2021 President Elect for the largest Realtors Board on the Big Island.