Read the article "What’s the Real Estate Market Doing?"
- by Greg Gerard-Realtor.com

Serving you with a professional focus on quality properties along the Kona and Kohala Coast and throughout Hawaii. "Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization."
Nationally Accredited Buyers Representative, Greg Gerard R, Realtor Broker, GRI, ABR, CRS Offering Homes and Properties for Sale on the Big Island of Hawaii Cell 808-987-7720 Office 808-329-5255

The following is also a reprint from the 2005 "Kona Kohala Chamber of Commerce Newcomers Guide and Data Book", Real Estate Section

What’s the Real Estate Market Doing?
by Greg Gerard, Realtor

West Hawai‘i has enjoyed a cyclical pattern of population growth over the years. The period between growth spurts steadily diminished from a 10-year cycle starting in the 1960s to the day-to-day constant growth we see now.

With each expanding economic cycle, the relative cost of living and supply of goods and services has significantly improved. In 1999, the inflow of newcomers resulted in new vitality for home sales that has only increased in tempo. With the terrible events in New York in “01”, buyers seemed to re-double their interest in Hawai‘i for security reasons. As tourism slowed for a bit, housing sales actually rose sharply. At the same time, the Baby-Boomer generation is entering its retirement years, allowing employment opportunity to be less of a factor in the viability of a move to Hawai‘i. These factors, in conjunction with a broadly held desire to live in a warm tropical environment, have placed significant demands on a limited supply of available homes, condominiums and land zoned for development.

Despite rising real estate prices, the Big Island is still seen as a very good value.

Of the 3,242 households that relocated to the Big Island in 2003, the largest group came from Oahu and Maui – fully 28 percent of the total – followed by California at 24 percent. While it’s true that people relocate here from all over the world, almost 40 percent of the mainland households relocating to Hawai‘i came from the Western United States, where housing costs are greater than here on the Big Island. Housing prices on Oahu, Maui and Kauai, also are generally higher than on this island. The Western US and Hawai‘i together account for 68 percent of all households moving to this island. (2003 data based on US Federal Income Tax returns filed).

Typical entry level condos and homes in Kailua Kona (6/04) were priced in the $275,000 and $375,000 range respectively. Generally prices decrease the farther away one gets from centers of employment and the best weather conditions.

Fortunately for newcomers there are many new developments either in progress or scheduled for the near future. New condo and housing projects are springing up along and above oceanfront Ali‘i Drive in Kailua-Kona; several housing projects are in progress above the airport; new projects are active among the oceanfront hotel/resort complexes, from Hualalai Resort on the south end to Mauna Kea Resort at the north end, and several large projects are proposed in Waikoloa Village and Waimea.

Economists feel that the in-migration of Baby Boomers, who are preparing to change their lifestyle, will lead to the biggest increase in resident population in our history. Only a percentage of the near-44 million Boomers will choose Hawai‘i as their place to live, but this demographic shift is truly a sea change with great potential for economic benefit to the community if planned wisely. These factors are expected to be driving forces for a strong real estate market in the foreseeable future.

If Hawai‘i County can implement its General Plan with vision and logical and sustainable rezoning, local government could make a very positive impact on the housing opportunities for the local working population. These changes would have the effect of increasing housing supply at a critical time in the market place, when affordability is a pressing concern at the entry level for our working families.

With much of the island’s recent growth taking place in West Hawai‘i, State and County officials are seriously challenged to address infrastructure needs. Fortunately, along with growth, is the dramatic increase in the tax revenues from Kona and Kohala. Both Governor Lingle and Mayor Kim have given strong assurances that they will address the infrastructure needs as important priorities in their administrations. If they do, it will have a positive effect on the availability and cost of new housing. In any event housing sales are predicted to remain very strong for the foreseeable future because of the demand from the large numbers of Baby Boomers coming from Honolulu, the mainland and around the world.

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