Located on the picturesque western shore of Hawaii’s Big Island, the Kona real estate market owes much of its prosperity to the bustling tourism industry. There is no question to believe that the economic lockdown would result in slower demand and reduced real estate values. The question is: how much softer? Naturally, the listing and sale of properties during this time created extreme challenges. Home sellers would not allow the buyers to show their homes. But still, local buyers are showing interest to buy luxury homes in Kailua-Kona, Hawaii. The lowered interest rates influence buying decisions. However, the local buyers have a tough time competing and a limited number of off-island buyers may open a small window of opportunity.
Before buying property, please do your homework first and get pre-approved. By doing a thorough reading of the listings and searching the neighborhood on your own help a lot. Some home sellers allow you to virtually walk through the home and take the roof off, allowing you to look down into the living spaces. It is a great way to preview a home like this one on 360 interior walkthroughs. If you would like to visit the property in-person once you have done all your homework, book the appointment with the property owner to meet you at the luxury property. While visiting the property practice social distancing, avoid touching the stuff at the home and wear gloves. Most of the owners of the houses are trying to disinfectant the home, but it is not a seamless process. Home sellers should wipe all doorknobs and keep the cabinet doors open.
What about the new listings? Fresh inventory is coming on the market, so the sellers recommending the buyers get ready to sit tight. The home sellers release the property to “preview” on the multiple listing services once it is ready. Many home buyers especially off-island buyers work from home and wonder what they are doing? Oh, they are hunting for their dream home. Escrow companies and lending companies are still open, but they do not make appointments in the office. Mobile notaries are available so far. A modern idea of virtual notary has not been implemented locally but being used on the mainland. Although it is early to assess the full impact, we foresee a temporary slowdown, of course.
New buyers are expected to keep a tab on the rate lock. You can start this discussion with your lender right row. Appraisals are affected especially for occupied properties. Some appraisers will not be going to access an occupied property. Buyers are now in a position to step into the market and are able to simultaneously take advantage of the latest price tampering and benefit from the appreciation that may result from the recent development announcement.
Kona’s real estate market remains remarkably lucrative. Nonetheless, rates started to mimic pre-recession highs nearly a decade ago. As a result, the real estate in Kona is especially expensive at the moment, although the early part of this year indicates that the city may see a return to normalcy. Despite rates collapse in the near future, it may now be time for homebuyers to start dreaming about the purchase of luxury properties again. That said, the high-price environment of the Kona real estate market can benefit those with longer-term properties.
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