Big Island Real Estate Market Update | November 2024 | Kona • Waikoloa • South Hawaii

Aloha, it's Julie Zemelis, 365 Hawaii, and we are bringing you your November update on what's happening on the Big Island of Hawaii and all different regions, and also mortgage market update. We have an amazing team with us today. We have Travis Green from Build Mortgage, and he's gonna be giving us our mortgage update. And we also have Tanya Klett, and she's from Real Broker, and she is from North Hawaii. And we have Andy Madrid, and he is also from Real Broker, and he is going to be giving us the South Hawaii region update. And we have Eric Zemelis, who's gonna be talking a little bit about West Hawaii and talking about the different neighborhoods so you guys can compare apples to apples. And it looks like I'll be giving you guys a little bit more information about West Hawaii as well. So let's get going, and we always start with the money. So Travis, talk to us a little bit about what's happening with the mortgage rates. Yeah, so honestly, not a lot of movement in mortgage rates overall. The government shutdown coming to an end has been welcomed by the market because now we should start seeing some of the data that didn't come out during the shutdown. And so to that end, we did get the September jobs report that should have come out in October. And that showed that the economy added 119,000 jobs, but the unemployment rate did climb to 4.4%. So this was not a bad reading. I think replacement rate for the job market is estimated somewhere around 75,000, 80,000-ish jobs. And so numbers above that are basically net positive adding to the labor market. The Bureau of Labor Statistics has said though that they're probably not going to release an October jobs report. I think due to the shutdown, they didn't collect enough data to meet the standard and release the report. So that's a bummer. And all in all, rates have kind of taken this in stride. And so we're kind of still bumping along. I think last time, what was it, last month, somewhere in the, according to Mortgage News Daily, they collect an average from a bunch of lenders. It was like right around, it might've been a little bit lower than, I think it's around 6.35, 6.4 today for a 30-year fix, conventional primary resident. So not a ton of movement. But I wanna talk a little bit about maybe why we're not seeing a lot of movement in long-term rates, even though there seems to be kind of like movement happening like with the stock market and like NVIDIA earnings and the unemployment rate and inflation and things like that. So there's kind of a major structural impediment to long-term interest rates going lower. And that really has to do with the US federal budget deficit. And so the US, most of the time, spends more, the government spends more than it takes in in tax receipts. I think we've had 12 non-consecutive years since 1933 where we ran a surplus. So most of the time we're running a deficit. And when the US government runs a budget deficit, we have to borrow to cover the difference. And the way the US government borrows is, it issues treasuries. So treasury issuance is basically like selling IOUs out into the bond market and then the central banks of other countries and large institutional investors and so forth buy that. And that's how we finance the budget deficit and keep things moving. However, the budget deficit at this point is like $2 trillion or close to it. So if we're adding $2 trillion of new treasury issuance every single year, what happens when you oversupply a market is you're gonna drive down the price of that, in this case, treasuries, right? And so we're issuing all these treasuries every single year into a bond market and we're pushing down the price. And so long-term interest rates move in the opposite direction of bond prices. So when those prices go down, interest rates go up, right? And so for long-term interest rates really to come down, we need to number one, shrink the deficit so that we can draw down our treasury issuance. And also, we need to maintain like a global appetite for US treasury debt. Some central banks in other countries are starting to pare back their purchases of US treasury debt because they need money for other things. And if that happens or if they become net sellers, that's more supply. So if they're selling the treasuries that they hold of ours, they're selling that into the market, that's even more supply, again, bad for the price, bad for long-term interest rates. And so that dynamic right now, because of the size and duration of our budget deficits and how we finance those is a real stumbling block that makes it hard to imagine interest rates going dramatically lower than where they are now. I think that there's probably room for some improvement just with maybe tightening spreads and things like that. But long-term, I think Lawrence Young said he doesn't see interest rates below 5%, like long-term interest rates. It's hard to see. It's hard to see, well, yeah. And I don't know, that's a pretty long time horizon. But I mean, in the near and medium term, yeah, I think that's a pretty safe assumption. And so I had somebody ask me today, like, what are rates gonna do next year? My response was, well, if you liked interest rates this year, you're gonna love them next year because it's probably gonna look the same, my guess. Yeah, yeah, because if people are saying, hey, if I remember for the last two years, we've been saying, oh, when they get down to 5.5, when they get down to the low fives, and it just hasn't happened. And so I think across the board, what you've been kind of also saying is that we're not gonna see too much. And so if you can afford a mortgage at these rates now, buy now or stop waiting for a point less, right? Yeah, or do an interest rate buy down, a permanent buy down or a temporary buy down. Or sometimes the government loans like FHA, VA, USDA, those have lower interest rates right now. And so there are ways to get an interest rate into a comfort zone, I think, for most people. But just that kind of like the market naturally, pushing rates as low as they were kind of artificially forced during the pandemic. It's hard to see how that happens again. Yeah, okay, thank you. I asked Thomas to give us kind of an update on what the heck is not only going with the market, but what the market forces are so people would understand it a little bit better. Totally appreciate that, thank you very much. Andy Madrid, who's gonna talk a bit about South Hawaii. And if you have anything in South Kona, I don't know if I've asked you to do that, but what are your feelings, what are you seeing? Hey guys, well, like Nui was saying, I mean, if something's priced right, it will definitely sell and in multiple offers. I just, I had the seller. We enlisted a piece of vacant land. She priced it to move, we had three offers on it. And we went into escrow over asking price on a piece of land and it's kind of shocking. So, that being said, that was not in, that wasn't actually in my neighborhood. So down here in Kau, in Hawaiian Ocean View Estates and Hawaiian Ocean View Ranchos, this is lava zone two. And so it's a much tougher neighborhood to be in, in terms of when it comes to a seller wanting to sell their property, because right now it's kind of all about the price. We had some unfortunate news, as I shared with you guys yesterday, that I become aware of, and we'll talk about that. So right now in the Ocean View area, there are 73 homes on the market. And as I've always said in the past, I would say 30, 40% of those will be unpermitted, completely unpermitted. So they require cash. The price range is between 39,000 and 815,000. Although there is one which is a residence with a business on it, and that's the Tiki Mama's location. Oh yeah. Currently for sale for $2 million. Two million? Two million, yeah. 1,999,000, yeah. Wow. So will they get it? Probably not. You know, we'll see. You know, if somebody really, really wants it for the nostalgia. You know, it's not a big chunk of property. Yeah, it's different. Everything else, you know, for sale is residential. So between- Well, to speak to that, though, maybe people who might not know this, there is not a lot of businesses down there, and there's a large population without a lot of businesses. So the opportunity is there. Yeah, there's definitely a need. There's definitely a need, but you know, I don't know how commercial insurance works versus residential, but when I look at what it costs to insure a modest home down here, which is a huge issue for buyers that need mortgages, you know, if commercial insurance is anything like residential insurance, it's just, it's cost prohibitive. Yeah, yeah. Speaking of that, which is what I was gonna bring up, I wasn't aware of this, and Travis, you might have some insight, but I was told, like, during the government shutdown, the VA, you know, VA loans and USDA loans, all these government-backed loans were suspended for Lava Zones 1 and 2. You know, so last year and earlier this year, I'd closed VA loans in Osheville being Lava Zone 2. I knew that you could get VA loans in Lava Zone 1 because, you know, we were getting sales in Leilani Estates, and then I closed USDA. But now, none of that's available. So a buyer that's getting financing is, they gotta go conventional. There aren't any, you know, that's their only choice, you know, for buying in the Lava Zone 2 areas down here, which is the majority of this Kahlua area is Lava Zone 2. Do you know anything about that? No, I had not heard that. I knew that, you know, the big, kind of the big interruption in lending that I heard about was basic, was kind of confined to USDA for their guarantees of new mortgage loans, things that hadn't been funded and guaranteed by them were not gonna happen until after the shutdown. But I had not heard that about VA. Yeah, I got Lava Zone 2. And I had to go digging for the information. Yeah, I was kind of bummed out, you know. So yeah, so 73 properties are on the market. There are 11 in escrow. Average days on market is 105 days with $45,000 being the least expensive property. I'm sorry, 45 days on market was the lowest one and 926 days on market for the highest price. That's a pricing problem, isn't it? And it's, well, yeah, it is a problem. There were five sales so far. I only went back to the 1st of November because we've been trying to stay, you know, stay with, you know, trying to not go back too far. Five sales between, get this, $247,000 and 1.1 million down here in the ranchos. The 1.1 million was no days on market. Someone really wanted to have that property. Personally, I think they were out of their minds to spend that kind of coin in the- Lava Zone 2. Lava Zone 2, it's three acres. It has an above ground pool, which is like a dough boy pool, you know. But yeah, and median days on market, 45. Now, interestingly, the sales price to list price ratio, 98.8% is what sellers are getting here. Was that original to sale or was that after you dropped the price and then the sale? No, so original to sale, 98.8. After price drop, they're still getting 96.4. So they're still getting a pretty solid price. Yeah, okay. There's not a lot of movement, but I think sellers are getting more realistic on where they need to be priced at. It's been a challenge between government shutdown, between tariffs, between just this general buyer malaise with all that's going on in the economies makes it really, really tough. Yep. Properties that we thought had been priced really, really well were getting stuck. And then finding out about the more limited financing options, which I wasn't aware of. I've had to share that with sellers because it's an impact. It's impacting, yeah, yeah. Yeah, yeah. And then we always have a lot of land for sale. Right now, 243 parcels are for sale in the area between $7,500 and $500,000. They've been with everything over 200,000 though, those are like larger pieces, 21 acres, 100 acres are big, big chunks. Between 9,500 and there are seven sales of that. The 243 parcels, we had seven sales during November, month to date. Yeah, seven. Okay, so seven now, how much is it normally? Yeah, there's usually not a ton. I would say we're in the teens typically. Okay. You know, we're in the teens unless we're having a good run, but you typically we're in the teens. Okay. So between 9,500 and $60,000. Interestingly enough, everybody's getting their asking price, 100%. Okay. One of them for 102%, so yeah. Okay, so lower priced places. Yeah. Okay, okay. So then the other big neighborhood would be down in the South Point area, the Green Sands, Discovery Harbor, Mark Twain States area. There are, oh, where's my residential? I just wrote it down. No, I didn't write it down. I'm sorry. I think I got a phone call and I didn't write my residential stuff down. Anyway, we'll talk about land. 43 parcels of land, really 42. There's a $4 million parcel out there, but we won't talk about it. Between 26,000 and $140,000 in these. Again, the 26,000 are gonna be the Green Sands area. The higher price point are gonna be Discovery Harbor and Mark Twain Estates. Oh, the 4 million is a 211 acre MacNut farm. Wow. Producing MacNut farm. Those are what's for sale. Six properties are pending between 39,000 and 85,000. One of them being in Green Sands, the rest of them being in Discovery Harbor. Okay. So do you think Discovery Harbor is moving yet? Since I still have my unsold piece of land there. It's really sluggish. Yeah. Yeah, it's really sluggish. I reached out to a couple of different agents that had properties for sale down there and no one's biting in Discovery Harbor right now. I mean, it's, you know, and the typical price point for homes in the neighborhood start at 500,000. You know, if you're looking for, like I've got one down there for 649, we're gonna take a small adjustment on that. But trying to find ways to, you know, a seller feels the pain of a price reduction and a buyer might think that it's a really good, great, I'm getting $25,000, but really what does it mean to their payment? You know. Not much. I think what makes it more attractive is taking a small price reduction and then taking the rest of that and giving it as a buyer concession, because I think it makes more of an impact for the buyer. It's just educating the buyer's agents, you know, making sure that we educate the buyer and let them understand, it's like, hey, you know, taking that right off the bottom line doesn't really get you much bang for a buck. You know, it doesn't really, you know, what does it do? It lets you go buy an extra cup of Starbucks coffee. But that's about it. Really, it doesn't do a whole lot to you. Actually, it might not even be that much when you're talking about just whacking $25,000 off of a $640,000, you know, house. I don't think it moves that much. Hey, so speaking of, hey, so Travis, let's just say somebody wants to take, okay, let's say that you wanna do a price reduction on your house a little bit, or if a buyer comes to you and says, like, how much will it actually make a difference if I get this much money to buy a point down? It's, I mean, like, I know, let's say you have like a, let's say a $500,000 house. To get the point buy down, how much money do you need to ask the seller to do a concession to actually make a difference in your mortgage rate? It depends heavily on the loan amount. So, you know, and for viewers, when we say a point, that's 1% of the loan amount. So if somebody has a $500,000 loan and they're paying a point or, you know, gonna use a seller concession and pay a point to get their rate down, a point on $500,000 is five grand. So $5,000 in closing costs. The relationship between like the points you pay and like what your interest rate is, is not like a linear thing. It's not like, there's not like a consistent rule of thumb for like, if you pay a point, you can reduce your interest rate by X percent or whatever. That changes with mortgage rates. But I just pulled up a quick calculator on, so a hundred or sorry, $25,000 on a 30 year fixed right now, 25 grand, I put in 6.25% interest rate was about 150 bucks a month. And so right now, I mean, rule of thumb for $100,000, I think like $100,000 is about $600 a month financed. And again, it's tough to give people like useful rules of thumb for this because on a higher dollar amount loan, like an interest rate buy-down is gonna have a bigger impact, right? Saving even a quarter percent or half a percent is gonna have a much bigger impact for an eight, $900,000 loan than it is for a three, $400,000 loan. That makes sense. I knew that wasn't gonna be that easy, but I figured maybe what buyers can do is talk to you ahead of time and say, what's it gonna take? And then when they go to negotiate with the seller, they can say, I need this much money and seller concessions or buyer, so that I can actually buy down a point. So instead of waiting for the seller's agent to come up with a number, maybe a buyer could come with their negotiations and say, I need this from you. Instead of just asking, like instead of low-balling the price, say, I specifically need this for that. And I haven't seen that, so I was wondering if that's a new, maybe another opportunity. I'll just share this. The last two houses that my wife and I bought, that's what we did was we figured out our loan and what we thought we were gonna spend after closing on the house and stuff like that, closing costs, interest rate, all that. And we just went in with an offer, like more or less at list, gave our concession amount and agreed to an as-is. And we're like, hey, we know what the house needs. This is the amount we need. We're not gonna bother you on inspection. We know what we're getting into. And we were able to have our closing costs covered and put some towards the interest rate buy-down on the seller's dime because we thought it was more useful than asking for it off the price. Yeah, okay, that's another opportunity for people to figure out how they can make it work. Thanks. Okay, so there you go. I'll do the residential stuff, but then I'll let you guys go. So there were two residential sales in the South Point area. Neither one of them were in Discovery Harbor. Both were cash, one for 295 and one for, listed for 1,000,950. It was a bed and breakfast on South Point Road, been on the market forever. Yeah, I've seen that. For around 77 days. It closed for 1,000,650. Hey. Cash. That just closed. Someone got their big dream of owning a bed and breakfast on Hawaii Island. Yeah, there you go. Okay. There's an agent, KW has got one for sale down there on South Point Road, another bed and breakfast setup down there. There are 28 properties on the market. Eight of those are unpermitted. The rest are permitted. The price points begin at 470,000 and they go to 599. We had a couple of really strong sales last month, but now we top out at 595. And then there are three pending. One at 360, between 360 and 599. Interestingly enough, none of these are in Discovery Harbor. There are Mark Twain states. Yeah, okay. Well, it shows that that place is having a lull. Okay, thank you, thank you. Okay, so let's see what's going on in the more moneyed experience here of North Hawaii. And we have Tanya, okay. Aloha, hi. Tanya with The Real Broker. First of all, I'm sad today. I know, Jana. Jana, we miss her already, but it's okay. The reason why Tanya is joining us today is because Jana Mahoney is actually moving to Santa Barbara and she will be, I'd like to think of her as our Santa Barbara South Coast realtor. If anybody is thinking about coming from Santa Barbara, Jana is an amazing realtor and she'll help you sell your house. And we'll pick you up on the other end over here and you can talk to Tanya. Exactly. Well, hi, it's good to be back, but I'm sad. I just wanted to acknowledge Jana. We're gonna, we miss her so much already. And Tanya also lives in Waikoloa Village. So you live up there? I do, yeah. I live up at 20, 21 years next month. Can you believe it? That's pretty high. You got in there early. Apparently, still in the same house, but anyway, that happens too, right? So I'll start with the condos in Waikoloa. There are currently 25 listed. So that's a pretty high number. And lowest price is 376 going up to the highest of 750. So the median there is about 462. And average days of market so far for the active is 90. So it's taking a while. And there's currently six that are pending. And that's nice to see, 328 up to about 500. And those are 109 days on the market. And then in the past month, there's only been four that have closed. So it's good to see that they're closings, but the numbers are lower and same sort of price point. And sales to the current price is about 95 and a half percent but to the original price is 90%. 90. That's the lowest I've heard. That's significant. I know. I was looking, it's the same in residential as well. So, you know, that tells me sellers are still stuck in the past. Yeah. You know, we're seeing a lot of people that moved during COVID. They're all moving now. And they were hoping to just recoup their costs and pay agent commissions. But, you know, that doesn't determine list price, right? Right. It's not what you want out of it. It's not what your neighbor said. It's not what your neighbor's neighbor said. Your uncle said. You got to go according to the market. You guys, this is a fresh voice having the same conversation we had last month. I have this conversation every, yeah, all the time. It's just, it's consistent, right? Yeah, because I think, you know, it's interesting and tell me if I'm wrong, that when everyone was moving here right after the pandemic, fall of 2020, all the way until 2022, didn't a lot of us who've been here for a long time kind of do the whole, and then we'll see them leave in the next two to three years. And it seems that there is this wave of people who've said, I've had enough of the Big Island or I've got other things happening in my life. I want to do something different, right? Yeah. And you know, that's pretty typical for the Big Island. I honestly, it's usually two to three years unless you have a tie that keeps you here, you know? So, and we've just seen it happen. And I think with COVID, maybe the numbers are a little larger because we had such an influx of people coming in from everywhere else. Yeah. So then moving on to the residential, there are 20 listed for sale currently. And those range, also this is the lowest I've seen in a while in Waikoloa. So 798 is the lowest, going up to 3 million, but those are the new Nanakai that are under construction, which just as an aside, I happen to be married to my photographer and he did some marketing shoots for them last week. Trying to send a drone up in the wind, Eric, you'll get that. We'll see. I'm looking forward to those photos coming out. It'll be nice to see some marketing material and for us to actually be able to go in and see them in person. So I was looking over his shoulder. They are really well done. The design is lovely. One comment is I think they are kind of close together, but they're well done. Oh, there we go. Okay, because when you're spending $3 million, you don't want to see your neighbor. You don't really want to be passing the sugar through the window, right? Yeah. If you want to borrow sugar. So we'll see. We'll see once the landscaping and everything is in, that might feel different. Right. But that was just a comment from me. Acacia palms between the window. Right, exactly. Just a little greener. You can get a single family house, three bedroom, two bath, single family house in Waikloa Village right now for less than 900,000. For less than 800. 800, okay, you guys. There's one for 798 at the moment. That is the lowest residential listing. But in terms of what you've seen out there over the last two, three months, are you seeing in general those older homes maybe coming down a little bit? Because all during the summer, they were up at 1.2. So now you're starting to see more of like maybe like lower price homes coming on the market. So I'm seeing both. They're coming on the market lower. And there's also, there's quite a few that are just plugging away at those price reductions. But again, I've been saying this same story for years is, sorry, I just lost my train of thought. What was I on about? Anyway, it'll come back to- People paying their house on the market high to begin with. Yeah, high to begin with. And then it goes stale on the market. So there's some that have been on for over a year and they're still hanging on at prices that I really don't see they're gonna get. So I've also seen some people take it, their property off the market for a while to get that clock restarted and then bring it back at a slightly lower price. And I think that might actually be a good strategy for those who have been sitting there a while is to maybe take it off and then come back and start fresh, so to speak. There you go. Because otherwise, buyers are like, wow, this has been here a while. What's wrong with it, right? Yes, that's exactly right. If you're using the same agent, you have to take the house off the market for 30 days to get the reset, correct? Correct. If you change agents, it changes over. Okay. Oh, wait, hang on. I might have to, if you change brokerages, it's immediate. There might also be a 30-day wait if you change agents. I have to double check on that. Okay, because I heard a strategy also was you could co-list with somebody else, take it off, put their name on, and then you could reset the price. That's a strategy. Well, my strategy is price accuracy. Yeah, exactly. That's my advice. Let's not play games here. Let's not mess around here. So let's see, where were we? So then moving on, in the village, this is actually nice to see. So 20 active listings, and there are 14 pending at the moment. So that is nice to see. So that's more balanced. And I think those are also sellers that have realized they had to be more realistic with their pricing. And so we won't know what it closes for, but the lowest one that's currently pending is at 660. So it'll be interesting to see what that closes for. And so average is under a million at the moment. It's 980. Okay. So that's interesting. And then the listings that have sold, residential and Waikoloa, that's been five in the past month. And those range from about 775 to just under 1.4, 1.375. And again, those same numbers though. So sale to current price has been 93%. So actually a little lower than the condos. And sale to the original price is right on the nose at 90%. 90. So that's pretty low. Yeah. That's like, I mean, I've been doing this for a long time. I've never seen anything below 90. Yeah. I was like, wow, I actually looked and looked again. I'm like, nope, I'm reading that correctly. Okay. Yeah. And then, so I'll head down to the resorts and I'll just go over the condos and residential. And then maybe every month I'll throw in maybe something from Waimea or up further North or Hamakua. I don't want to bore everybody. Right. So maybe just throwing it in every now and again. And that's another thing too that, yeah. Kind of like, what's the feeling? What's the trend? That kind of stuff. So yeah, go ahead. Okay. So just hitting the resorts quickly with the condos 49 actively listed at the moment. So that number is pretty high. And of course the numbers down there are quite different. So the lowest is a million. The highest is just under 11 million. So that's quite different there, but 12 contingent. And let's see how many have sold in the last month. That number is eight. And from just over a million to just under 4 million. So the average price there is about 1.8, the median 1.5. And sales to current price, that's pretty high. That's good. That's 97%. But then sale to original price, even lower, 89 and a half. Oh. Oh, so there we go. Now we've broken the 80s no less. Broken into the 80s. And then residential, I mean, down there at the resorts, so you're talking some pretty big numbers down there. So 17 actively listed and those started 4 million going up to basically 20, 19.9. So those are some really big numbers. But I saw a $2 million price reduction the other day and that got my attention because I don't think I've ever seen that. $2 million price reduction. Well, they had room to do it. Let me guess, it was a $6 million property. Yeah, it was over 20, something over 20 range somewhere around there. So what I'm seeing, I've had quite a few buyers come out of the woodworks in the past few weeks, but we're not getting anywhere just yet. I think it's more renewed interest, getting their ducks in the road with financing, just kind of seeing where things are. And I've written a couple of offers, but they've been a bit wishy-washy and we weren't able to secure them. But it feels like kind of hurry up and wait with the buyers and the sellers too. If sellers aren't having to list for a certain reason, I've got a few kind of just waiting in the wings and we're probably gonna come out probably mid-January. So people are waiting and then the buyers, the same thing, just waiting to see what's happening in the world and financing and that kind of thing. Yeah, yeah. Yeah, we're seeing a little bit of that here too, as well as people just saying kind of like, I've got quite a few buyers that say, I'll just wait until 2026. And that's right around the corner. Yeah, yeah. But they just kind of like you said, they're just kind of waiting, see how things go. And also, when you hear 89%, you're thinking blood in the water. And when buyers hear blood in the water, then they're kind of rubbing their little hands together. And they're like, ooh, I don't think we... But that's also the strategy is, and I've had this conversation with several buyers, it's like, they're not quite sure we're at the bottom. It feels like there's been a little bit of a slide and there's still just a little moving, but I don't think we're quite at the bottom yet. Yeah, yeah. So we'll see. Okay, okay. Yeah. Okay, so hang on, we're gonna let Eric go and then we'll have kind of like a group discussion on some more about what to do in this market for people who are buying and selling. So let me invite Eric to give us an idea of what's happening on the neighborhoods in Kona. Hello, I am the three neighborhoods in Kona that we kind of look after to get kind of a set bar of where everything is. And by looking at them every month, you can really get an idea of what's happening in the little microcosms that they are. The first one is Lokahi Makai. And usually we, I'm gonna say, there's not usually a lot of activity there, maybe one sale, one contingent and one active. And this month we have three actives and three contingents and one came on the market this month. And that one did sell, did go contingent. And the price range is everywhere from 899 to 1.449. So there are sort of all over the place. I would say the 1.449 did go contingent in 12 days, which is, but it was kind of an outlier. It had a pool and I think Julie, you saw it, it was quite a spectacular. Hunter. Someone killed the inside with all the things that are like a $2 million house would have. Like the most beautiful tile, the most beautiful like countertops, everything. And so someone said, I've never seen a $1.4 million house in Lokahi Makai in my life. And someone ate that right up. Right, but that's an outlier. The rest of them are 1,040,985,000, 1,050,922 and 899. So that's more of the realm of Lokahi Makai. So they're just, it's interesting that there are more, definitely a little bit more buyers, but we are with three contingent. It shows that there are buyers out there looking for it, you know, that they're doing it. So that was Lokahi Makai. And then we will go to Pulani Estates is our next one. And we have three active, three contingent and one sold. So again, usually like four is, three is about right for Pulani Estates in terms of being active. The three contingent is definitely shows that there's again, movement recently is what it is. So it seems, what it seems to be happening is the market has been stuck and now it's sort of unstuck, sticking here in Kona. And the one that sold was listed at 999,000 and it sold for 975. So it was a $25,000 different. And it was on, that one was on the market for 20 days. So not too long. The longest one that had just one contingent was 258 days, which is, I mean, that's definitely a long timer there. And the ones that are active, one came on eight days ago, one came on 15 days ago, one came on 10 days ago. So they're all brand new in Pulani Estates. So the answer is things are happening there. The prices, we used to say that they're right around a million for a while, there was nothing below a million and for a while, there's nothing above a million. And now we're kind of in the mix. Most of them are below a million, 950, 975, 900, 999. And one above 1.1 and there's one active that's at 1.35. So that gives you an idea of what's happening at Pulani Estates. And then our- We actually saw that 135 as the outlier, as a guy that bought that house in January and now he's trying to sell it. And so it's, there you go, is what happens when you're trying to get top dollar so you don't lose your money because of closing costs. So, but it's got an amazing view. So hopefully you get it. It's a good property. Let's see where it goes for. You know, let's see if it pulls up the rest of the neighborhood a little bit. Okay, and then the third area that we do is Ali'i Lani. And usually we have about 10 that are for sale there. And this month we have three active, three contingent and six that have sold. And you're probably wondering why did all those six sold about 45 days ago or something like that? Well, as you guys know, the insurance rates went up. This, I forgot when, after the, this year during, after the Maui fires is what happened. And so now what happened is they raised the rates up quite a bit for insurance. And now they've decided, okay, we overkill a little. And they came back, which made particularly Ali'i Lani, they dropped the, it went up by $200. It came down by $200. So that $200 in HOA fee drop was enough to say that's worth buying. And now the prices are reasonable, right? So that spurred six sales on during that time. And they sell roughly for, I'll give you a couple of them. One was at 439, it sold for 440. Another was at 465, 460, 474, and then sold for 465. So they're all close to roughly where the numbers were because at the same time, when you take off the $200 bunch HOA fees, it starts to be pretty reasonable and they need to do it. The three that are active, one is new, right? And that has been on the market for eight days. The other one has been on the market, two other actives, 233 and 269. And the price range goes anywhere from the cheapest, the cheapest one was 439. And I'm just looking to see what our most expensive one that was recently under 569 was the highest contingent. So the answer is the markets of these three are moving, right? I mean, the prices look like they have come down a little. It looks like it's a little bit more of a buyer's market, but get whatever else says with the prices being at a reasonable amount, they are selling and people are still doing it, which I'm almost to say these look to be more movement in some of these than I've seen in some of the other areas. Okay, thank you. So I will give you guys kind of like a little rundown of West Hawaii in general. We're missing Lance right now. And Lance is an amazing person who gives us not only statistics, but a trend report and some insight. But I just want to let you guys know that this, now these are numbers from October. The median price of a single family home in West Hawaii in North Kona specifically was 1,100,000 last year and 1.320 this year. So even with the price decline, cause you guys will be surprised to learn that the final list of sales price for us was 92.64. So, and also for the condos, it was 92%. So definitely there are sale prices happening all over the place. Last year, the median price for a condo was 617,000 and this year it's 550. And that went down 10% year over year. And so I have seen definitely a softening in the short-term vacation rental condo market. Unlike Eric's, that condo complex he's talking about, that's for people who actually want to live here, that condo complex is not short-term vacation rentals. And also for sale statistics, the amount of homes being sold was residential, was 32 last year and 33 this year. And then for condos though, it was 24 last year, 19 this year for October, but I checked a year to date in terms of what happened in November. And it was 29 last year and only nine up to this date this year. So the condo market definitely has seen some pullback from people who are in the market. And I checked to see kind of what the price range was. Most of the condos are selling for under 450. And so these condos are a little bit more expensive than the 500, 600 and 700. They're sitting for like a hundred days. So definitely we've got a different tale of the two cities here in terms of what's happening with the housing market on the condos versus single-family homes. So there's your snapshot for West Hawaii. And in terms of going and talking to all of you guys to get your input on what's happening, if you were a seller, we keep talking about these different things, suggestions for if you were to enter the market for the holidays, which is supposed to be our hottest market in Hawaii is through December, January, February. You're coming on the market right now and you wanna get your house off the market in the next 30, 40 days. Tanya, go, what are you doing? First of all, I think timing is important. I have had listings over the holidays and it's just go, go, go, go. And around December 14th, that falls off the cliff until probably around January 10th. That's been my experience with listings, but that's a home. So I would probably keep that in mind. If you really wanted to move it, I would price it in a very compelling manner to get it under contract as soon as possible. Also, just something to keep in mind as well is, I wouldn't necessarily take photos when you've got all your festive ornaments up, Christmas tree or anything like that, because you don't know how long it's gonna take to sell. And then you don't want all your photos to be looking like Christmas in the middle of March. So I think just timing, just, I've just noticed that before and it was just things stopped right over that festive period. So just price it right again. Sorry, I sound like a stuck record, but price it right. Because it's funny you say that. We're releasing a listing next week, the day before Thanksgiving. And we're hoping that people are gonna be kind of like, looking for houses at Thanksgiving time. And we're hoping that he'll get an offer before Christmas. But it's kind of like, well, maybe people are here for the holidays and they're shopping for houses while they're here. But you're kind of saying. So we'll see. We'll see if we get some sellers out there or some buyers out there. And Andy, what would you do if you got a listing right now and you were thinking about putting it on the market? What are you telling people? For to talk to a seller, it's all about price. It's all about price right now. Because the buyers that are out there looking, they're looking for bargains. And I think because there's this general sense that it's a buyer's market. Wherever they're coming from, they're like, oh yeah, we're coming from here. Where are they ever? With the exception of some areas in the Midwest, in the upper Midwest and in the Northeast where there is still primarily a seller's market. Most of the country, it's a buyer's market. So for the sellers, it's all about the price. The other thing is don't get emotional when you get an offer you don't like. You've got to be willing to compromise. You've got to be willing to make concessions because a lot of times the offer you get, the first offer you get is going to be the best offer you get and you got to try to make it work. Just don't kick it in the curb because you don't like it. I think those are important. The photography and the staging and all that, that's all fixable. The photography bar is really low. So that's on us as agents to get really good. Yeah, professional. I saw a listing come on. You can tell that the agent took it with their iPhone. It's like crazy angles, too much ceiling with the house down here. Four to one at night. You've got the reflection of the agent in the picture with the curtains closed. Yeah. Obviously, it's making themselves and other things is if you have showings, don't limit the showings. Don't make it, don't give buyers or hurdles that they have to get over. I can only show it on Tuesdays and Wednesdays between one and three, crap like that. If you make it available to show, make it available to show. Get the hell out. That's good. I love it. I have something to add to that. It's been interesting being on the buyer side of this, too, is that there are times that I'm all, it says that there's a two-day window to show it or something like that. And you come in, you go, you know, I got a buyer who are interested. We can get the money, we can make it happen. They're like, okay, okay, okay, we'll make it happen. So it is just exactly what you're talking about. They're definitely making it easier to see. And if you can get in, you know what I mean? It's definitely hard when they wanna see vacation rentals and they wanna do it over the holidays because they're gonna be booked. So when I'm having conversations with buyers about properties and they're looking for, because I've got people looking for vacation rentals, I always tell them, you know, same day showings, forget it. You know, holiday showings, it's gonna be tough. You know, we need to plan for those. Yeah, yeah. Yeah, in fact, just so you guys know what is possible is when you do wanna see a short-term vacation rental and it's in between guests, that you might get in between the cleanings, like between like 1130 in the morning, two o'clock in the afternoon, if you're lucky to get in there. Yeah, with all the sheets off the bed too. Yeah, well, that's, yeah, you get what you get. But also like my people are like, we're gonna pay for their lunch to leave the condo. And so you might have someone else's luggage in there, but at least if you have a motivated seller, they might actually pay the person to leave for a while. The other thing is for those is make sure you have all your financials in a row because a buyer looking at these properties, they wanna see the financials, not that we think it's gonna make and oh yeah, we get this, but they have nothing behind it. That information has gotta be available. Yes, in fact, I did that and I put it up on the MLS so people can actually draw down the financials. So that's another thing too that people might not know is that people do put up attachments to the listing so you can actually learn more a little bit about the property. And then in terms of getting themselves ready for financing, Travis, what's the story if you're thinking, boy, now's the time to buy, it looks like it's a buyer's market, I wanna jump in, what's the story? Yeah, you don't wanna put that off getting your pre-approval ready. And I say pre-approval and not pre-qualification because what I distinguish between the two and just for the channel, I'll kind of clarify this again. A pre-qualification in my definition and pretty commonly in the industry is that means you've submitted a loan application either online or over the phone with a loan officer, they've pulled your credit and maybe you've had a conversation. And so that's kind of the extent of what a pre-qualification can vouch for. And a pre-approval is substantially better if you wanna make an offer or be prepared for your financing and that is where you've done your pre-qualification. And then you've done the homework assigned to you by the loan officer, which is you've gathered and uploaded or sent by courier or whatever your preferred method is, your W-2s, your tax returns, bank statements, pay stubs, whatever is needed by that lender to get that loan ready. And so what does happen sometimes is people will come here on vacation and they see something and they're like, my God, I have to have it. And then they're like, where's the lender? And then they call me and then they're on vacation, right? And so they don't have everything easily at hand, maybe their cell service isn't good, they don't have the wifi password for the condo they're staying in or whatever and they can't get their stuff, right? And so, which is fine, we work around it, but for the most comfortable experience, for the least stressful experience, if you think that you're gonna be in the market for it, call me in advance, I'm really friendly and go through the loan application and then I'll give you a list of what you need to provide. And then it's so good to get that done, especially if you're coming here from the mainland, it's so good to get that done in advance, get everything uploaded and you can truly relax when you're here and look around and enjoy. And then we can strategize on what's gonna be the best situation for you. Like I have somebody right now who's putting in offers and I was able to kind of get at the idea of like, it's not so much a down payment for them as like a total amount of cash that they kind of are happy to put towards a transaction and going above that makes them uncomfortable. And so to talk to them and say, okay, is this the number that you totally wanna have, say 100 grand or whatever? This is like, you don't wanna exceed that total out of pocket, right? Including down payment, closing costs, whatever. And they're like, yeah, I'm like, okay, good. And then kind of like, you might go to a restaurant and have like steak three ways, right? Or like a carrots three ways. I'll do like 100 grand three ways. And so I'll show them like, here's maximizing down payment with 100 grand. Here's maybe a Goldilocks version in the middle. And then here's like dialing back the down payment and really leaning into buying down your interest rate, but all of them are 100 grand. And then we'll model that out and see what works for them. And so kind of like, that's part of it too with the lender is just not just like making sure that you can do it, but seeing what sounds right. What's the right kind of price point down payment amount, monthly payment, like, do you feel confident about it, about that range and the person you're working with? Okay, and you guys, another plug for Travis is that he takes the time to do that with people. It's not just, what's the rate today? He'll sit there and give you the whole strategy. And which also reminds me that we have some buyers coming into the upper price ranges and in some of the upper price ranges, houses above like 1.8 million, sometimes they want proof of funds and they wanna know that you're pre-approved. So bring that and get to have a letter and you actually have to have bank statements to prove that you actually approve of funds when you decide you're gonna say, can I go look at that house? So just so you know. Okay, well then, as you can tell, the sun is starting to set. So I hope that you guys- Is that me you're talking about? Yeah, I said mine too. So I'm so glad I got a chance to get you guys to discuss the market. Obviously we have a changing, shifting market again and getting all your ducks in a row and understanding what's available and what's possible and all these different opportunities for advice. Thanks to Tanya and Andy and Manu and also Eric. And you guys don't forget, we all sell real estate, we all want your business. And obviously you can call Travis, he wants your business too. But at least one thing I like about the 365 group here is that we give this information to you guys as a give back to the community to make everybody a little bit more knowledgeable about what's happening in the real estate market, especially on the Big Island. So reach out to each of these people individually if you'd like. I put all their information down in the description so you can like say, hey, really what's going on in Waipahua Village or what's going on in South Hawaii. And also Andy does more than just South Hawaii, he also does South Kona and even Kona and Honoka'a. And same thing with Tanya, she'll go to Honoka'a. You guys, a lot of these people go, you know what, just give me a house and I'll go and show it to you. So I thank you guys again and happy Thanksgiving to all of you and to our viewers. And as we head towards the end of the year, we'll be doing this again near the end of December. I haven't figured out the date on this check and I don't want to put you guys in New Year's Eve here or anything. But it'll be interesting to see what happens as we go towards the end of the year and see if we get those numbers up again. So check the description below for more information, subscribe to the channel, ring the re-notification bell and we'll see you guys next month. So thank you.