|Things Are Looking Up!|
Things are looking up! Home sales in Kona indicate strong activity—pending sales are up and there is a decrease in active listings as shown in a report by master numbers cruncher and analyst, Mike Griggs, Realtor. Thanks, once again, Mike. The report refers to the “pending ratio” as an indicator of Market Strength and Market Trend. A pending ratio is a formula using the number of pending sales (accepted offers in escrow) and active listings. A pending ratio is a current leading indicator of market demand vs. supply dynamics based on listing and pending sale MLS data. The pending ratios for residential properties in Kona priced to $500,000 reflect a seller’s market currently, and prices greater than those listed over $501,000 would be considered a buyer’s market ratio.
For the period ending May 15, 2012, the report shows that 62% of all escrows are in the price range up to $400,000. But for those of you who are interested in buying or selling properties in the $701,000 to $900,000 range, the good news is that currently there are 21 residences in escrow vs. 9 for the same period last year.
Continued real estate values (over the last two years the Kona residential median price range has dropped from $403,000 to $366,000), still historically low interest rates and increasing buyer confidence has made the purchase of real estate more affordable and some consider real estate now less risky than equity investments.
Yes, indeed, things are looking up and now is a great time to be active in real estate.
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