Hilo, Hawaii, is the largest city on Hawaii Island (more commonly referred to as the Big Island), and the second largest city in the state, with a population of more than 40,000. it is located on the Hilo Bay on the windward (eastern) side of the island, has its own airport, the Hilo International Airport, and is the county seat of the island. Despite all these claims to Hawaiian fame, however, the Hilo real estate market has not been able to avoid the plague that has stricken nearly every local and major real estate market across the United States over the past couple of years. Here, like in so many other communities, the rule of supply and demand has taken effect: Home values have fallen as the number of Hilo homes for sale has risen as more and more homeowners have found themselves either unemployed and unable to make their mortgage payments or underwater and owing more on their homes than its now-valued price, and the number of foreclosures in Hilo has risen.
Though the real estate market here has stopped what seemed like a never-ending free fall, it is still far from out of the financial crisis woods. According to the Hawaii Island Board of Realtors' monthly statistics, there were 14 residential homes sold in South Hilo in September, a decrease from 18 at the same time last year. North Hilo, on the other hand, saw four homes sold in September, up from no sales at the same time last year. Although sales seemed to be struggling in September, however, so far in 2010, the number of residential homes sold in South Hilo is outpacing last year's figures to date by more than 24%, with 149 homes sold in the first nine months of the year. North Hilo, too, has seen sales figures besting last year's, with eight home sales this year so far versus just six last year at the same time. But despite promising sales volume, home values are still stuck in the mud. In September, South Hilo residential homes fetched a median sales price of $257,500, down 8% annually. So far this year, South Hilo homes sales price stand at a median of $255,000, down just over 7% from the same time a year ago. North Hilo sales are faring better though, with the median sales price for the first nine months of the year at $550,000, up almost 20% from a year ago.
Signals from the Hilo condo markets were mixed in September. There were four condos sold in South Hilo in the month, double the number sold in September of 2009. But so far this year, sales volume has failed to outpace 2009. There have only been 29 condos sold in South Hilo through September, down 21% from volume at the same time last year, which stood at 37 over the first nine months. Though the median price for condos sold in Hilo fell in September, it's actually up annually based on sales figures for this year to date. The September median price for a condo in Hilo was just over $61,000, down by more than 44% from $110,000 a year ago. But in the first nine months of 2010, the median condo sales price comes out to $90,000, eclipsing last year's same figure of $76,250 by more than 18%.