Hawaii | ranking real estate

$8000 tax credit and Sales Activity?

Posted by cmy on October 7th, 2009

The current First Time Homebuyer’s Tax Credit of $8,000 is due to expire on December 1, 2009. On the Island of Hawaii we are seeing an uptick in activity over the past few weeks. Presumably part of that activity is driven by these First Time Homebuyer’s eagerness to qualify for the credit.

Based on some of the numbers I posted last week for Residential Sales for the Big Island, overall we have seen an increase of 25.27% in activity Year-to-Date. That is a significant number for the Island, in regards to activity, although at the same time we have seen an overall Median price decrease for the Island of 18.75% with 7 of 9 districts showing a decrease in Median home prices.

While the Tax Credit is not the sole reason for the increase in activity, it is a major factor. That is why the National Association of Realtors is pushing hard for an extension of the program. One of the fears voiced, should this program end, is that activity will slow significantly which will put further downward pressure on Median home prices.

At its best the $8,000 tax credit has been described as a tool to increase activity and sales in the Residential Real Estate market at its worst its been called a prop which only stalls the inevitable, falsely holding up a market that needs to fully correct before it can be healthy.

As the deadline for the sunset of this credit nears and then passes, we shall see.

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Waipio

Posted by cmy on October 5th, 2009

Waipio

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3rd Quarter Residential Real Estate Market – Big Island of Hawaii

Posted by cmy on October 2nd, 2009

Source of data is from Hawaii Information Systems. 3rd Quarter 2009 Stats as of 10/2/2009

YOY – Residential Sales for the Entire Island rose 25.27% from 273 (2008) to 342 (2009)

Increase in Residential Sales by District:

Puna sales rose 23.23% from 99 sales (2008) to 122 Sales (2009)
Kau sales rose 108.33% from 12 sales (2008) to 25 sales (2009)
South Kona sales rose 25% from 8 sales (2008) to 10 sales (2009)
North Kona sales rose 67.44% from 43 sales (2008) to 72 sales (2009)
South Kohala sales rose 13.33% from 45 sales (2008) to 51 sales (2009)
North Kohala sales rose 150% from 4 sales (2008) to 10 sales (2009)

Decrease in Residential Sales by District:

South Hilo sales decreased 11.11% from 54 sales (2008) to 48 sales (2009)
North Hilo sales decreased 66.67% from 3 sales (2008) to 1 sales (2009)
Hamakua sales decreased 40% from 5 sales (2008) to 3 sales (2009)

YOY – Residential Median Price for the Entire Island was down 18.75% from $320,000 (2008) to $260,000 (2009)

Increase in Median Sales Price by District:

North Hilo median price rose by 204.49% from $156,000 (2008) to $475,000 (2009)
South Kona median price rose by 20.58% from $311,000 (2008) to $375,000 (2009)

Decrease in Median Sales Price by District:

Puna median price decreased by 19.35% from $215,000 (2008) to $173,400 (2009)
South Hilo median price decreased by 13.78% from $333,450 (2008) to $287,500 (2009)
Hamakua median price decreased by 60.00% from $400,000 (2008) to $160,000 (2009)
North Kohala median price decreased by 30.77% from $827,000 (2008) to $572,550 (2009)
South Kohala median price decreased by 19.33% from $445,000 (2008) to $359,000 (2009)
North Kona median price decreased by 24.41% from $549,000 (2008) to $415,000 (2009)
Kau median price decreased by 34.50% from $229,000 (2008) to $150,000 (2009)

* all increases and decreases need to take into account overall activity. less actual sales will allows for dramatic shifts in percentage of increase/decrease in data.

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