The Kona real estate market, part of the larger Hawaii real estate housing market, showed strong signs of improvement in the most recent tracking period. Both condos and homes sold more units in the month of June, while the median price for single-family houses increased slightly over the same period. This might have been a reflection of overall improvement in the economy, or partially as a result of the recently expired federal tax credit. According to a July 9, 2010 report from Pacific Business News, “Single-family home and condominium sales increased sharply in June on the Big Island of Hawaii compared to the same month last year, but median prices for condos were down. The 161 single-family homes sold last month were 56.3 percent higher than the 103 sold last year, according to Hawaii Information Service. The median price in June was $285,000, 1.8 percent higher than a year ago. Condominium sales almost doubled to 53 last month from 28 a year ago. But the median price of $210,000 was 29.9 percent lower than last year, when it was $299,450.” The local economy also benefited from an uptick in tourism, as discretionary spending gradually recovered in recent months.

The increased number of Kona homes for sale that were purchased in the month of June may have been boosted by a decrease in bankruptcies. According to a July 12, 2010 article from Pacific Business News, “Hawaii’s initial unemployment claims decreased by 6.3 percent in the past week. The Department of Business, Economic Development and Tourism released a report Thursday showing that a total of 2,699 claims were filed statewide in the past week, compared to 2,879 during the same week in 2009. Oahu topped the state with 69 new claims filed, bringing its total to 1,562 so far this week, an increase of 4.6 percent compared to last year…Maui and the Big Island of Hawaii both saw decreases in filings for the week. Maui was down to 370 claims last week compared to 547 claims filed during the same week last year, a decrease of 32.4 percent. The Big Island had 103 fewer claims this week than it had a year ago, bringing its total for the week to 500, a decrease of 17.1 percent from the same week last year.”