AGENT MLS HOME FINDER

The Kona Hawaii real estate market shares an odd relationship with the real estate markets of the Big Island at large, the entire state of Hawaii, and the United States in general. Kona is a portion of the Big Island which has considerably more resort type properties than the rest of the island – Hilo, for example, is considered to have a real estate market which caters more towards the local population than towards West Coast tourists.  This means that Kona is much more sensitive to changes in the economy and real estate markets of states in the continental United States than Hilo, or even the island of Oahu, which includes the population center of the Aloha State, Honolulu.

The impending bankruptcy of one of the largest home developers on the island is one notable and well-covered example of the troubles facing the real estate market in Kona. According to the title of an August 25, 2009 article in the Honolulu Star Bulletin, “Hualalai home developer files for bankruptcy.” The piece, authored by Nina Wun, noted that “Sunra Coffee LLC, developers of a subdivision offering 5-acre lots on Hawaii island, has filed for voluntary Chapter 11 bankruptcy.” The attorney for Sunra Coffee, however, did stress that the restructuring efforts are intended to make way for a new and revamped sales effort, as opposed to a liquidation of assets without a forward-looking plan.

An August 21, 2009 article in the Pacific Business News noted a mixed bit of news, stating that the rate of foreclosures on time shares remained stable, with several hundred shares being liquidated during the last month. The upside is, of course, that the problem does not seem to be deepening or widening based on the reported statistics. Compared to the month of July, Kona homes for sale seem to be gaining traction, at least according to a September 8, 2009 article in the Honolulu Star Bulletin, which reported that “On the Big Island the median price of a single-family home in August slipped 3.1 percent to $310,000 from $320,000 a year ago but jumped 19.2 percent from its $260,000 median in July, according to data from Hawaii Information Service.”