Resort Style Home Close to Town! Kona
MLS 622594 • $1,970,000
Privacy and space abound
in this 3,944 sf. home with
5 bedrooms, 3-car garage
situated on approximately
6.36 acres of land with photo
voltaic solar, pool, spa and
75-5995 Kuakini Hwy.
Kailua Kona HI 96740
R, GRI, SFR
Specializing in You
& Kona Real Estate
KONALINDA3@GMAIL.COM • WWW.PROPERTYINKONA.COM
Joseph A. Garcia, BIC
Christina Sotelo, BA
West Hawaii Real Estate | January 18, 2019 15
“A small but professional
company, (father licensed
since 1972 and daughter
since 2004) both Hawaii
real estate brokers,
specializing in long-term
rentals, as well as listings
and sales and home
check services. Call us
today for more details on
how we may be of service
1 bed / 1 bath
Second Floor Unit
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It’s not always working.
Metrostudy data show cancellations in
Southern California are up compared
to a year earlier.
Builders and agents blame a
variety of factors for ebbing demand.
Fewer buyers can afford homes
following a jump in mortgage rates
in 2018 and more than six years of
steady price increases. Some of those
who can afford a mortgage believe
prices simply can’t keep rising — a
sentiment worsened by uncertainty
on Wall Street and in Washington —
and don’t want to buy at the top.
“They are waiting for reassurance
that we are not in a crash,” said Mullin.
While predicting a collapse
is always a fraught business,
economists, citing strong job growth
and relatively tight lending standards,
generally don’t foresee a crash.
They do disagree on exactly what
Some experts believe price
growth is simply slowing as buyers
adjust to higher rates. Others think
values will come down a bit, arguing
they have gotten too far out of whack
Many families struggling to afford
a mortgage in California coastal
markets would cheer price declines.
But on quarterly earnings calls, major
home builders are quick to point out a
variety of factors that would continue
to put upward pressure on values.
Not only is job growth proceeding
despite uncertainty — California
added 30,700 jobs in November, and
its 4.1 percent unemployment rate
is the lowest in more than 40 years
— the large millennial population is
entering prime home-buying years
and oversupply doesn’t appear to be a
In California, builders on average
have constructed an average of 91,000
homes a year during the current
housing upswing, according to data
from the Construction Industry Research
Board. That compares to an average
of 158,000 a year during the boom
of the late 1990s to mid 2000s. In the
1980s housing expansion, construction
averaged 267,000 units a year.
“Long term, we really love
California,” Douglas C. Yearley Jr.,
chief executive of luxury builder Toll
Bros., said on a recent conference call.
Builders may have gotten too
aggressive on pricing. On a recent
single-family project in downtown
Huntington Beach, luxury builder WJK
Development tried unsuccessfully
to push prices up to $2.2 million,
10 percent above the previous persquare
foot record for the area.
“We took prices beyond the realm
of realty,” said Grant Keene, chief
executive of the Irvine company. “It
made consumers balk.”
A surer picture will emerge in the
spring, when many families usually
launch their home search. One thing
that may boost demand is a steady
decline in mortgage rates from a high
of 4.94 percent in November. This
week, Freddie Mac said the average
for a 30-year fixed mortgage was 4.45
percent, still up considerably from
3.99 percent a year earlier but at its
lowest level since April.
The drop-off has been caused in
large part by uncertainty surrounding
the economy, but there are signs
it helped spur a recent burst in
mortgage applications. Interest has
perked up at the Valley Village
development, for instance, and
for now the builder is no longer
marketing the Mini Cooper lease, said
Marc Tahler, the property’s agent.
Others see better times ahead.
“I believe spring should be a pretty
healthy, normal selling season,”
Douglas Bauer, chief executive of
Irvine-based home builder TRI Pointe
Group Inc., said in an interview.
Not everyone is so sure.
According to Tom Dallape, co-owner
of prominent local land broker the
Hoffman Co., some builders have
backed out of buying lots they had
previously agreed to scoop up. They
didn’t want to move forward, Dallape
said, because they wanted to “see
what happens in the spring.”