With the end of the year fast approaching, I wanted to cover some important shifts for the Hawaii island real estate market, 2024 real estate observations, and current opportunities for home buyers and sellers. If you plan to buy or sell in 2025 - I highly encourage you to read the whole post! If you are not so much into reading about market research, scroll to the bottom for the Spark Notes version.
Since my business is mostly in the North Kona, South Kohala, and North Kohala markets - my reflections will be geared mainly towards those areas. As a disclosure, please know that there’s always more than meets the eye when it comes to real estate, and every transaction is unique, influenced by location, property condition, and even timing. Ready to go?
Condominiums
The condo market has experienced some notable shifts this year to say the least. Compared to last November, inventory is way up—we currently have 288 condos on the market on Hawaii Island, a significant jump from 117 last year. Days on the market have also doubled to 60, and prices have increased, with the median price climbing from $530,000 last year to $650,000 this year.
Median Prices by Area:
North Kona: $570,000
South Kohala: $1,347,500
We have about 6.18 months of inventory with an absorption rate of 16.17%. The absorption rate indicates how quickly homes are selling relative to how many are available. Typically, a market with 5 to 7 months of inventory leans toward a buyer’s market, so on the surface, we might think it’s a great time for buyers. But there’s more to the story—especially with rising HOA insurance fees. This has caused a bit of uncertainty, making it harder to pinpoint exactly where the market stands.
Opportunity for Buyers: While we are leaning toward a buyer’s market, HOA fees are something to consider, especially with potential increases in 2025. Be sure to ask about HOA fees upfront and how they might impact your monthly costs. It’s a not-so-small detail that will make a big difference in your budget and overall investment.
Opportunity for Sellers: If you're selling a condo, the longer days on the market mean pricing and presentation are critical. Buyers are cautious, especially with higher HOA fees, so be sure your condo stands out. Offering a competitive price and ensuring the property is well-maintained can help sell it in a slightly slower market.
Residential Homes
When we look at residential properties, the numbers show more demand compared to condos. With 4.74 months of inventory and an absorption rate of 21.11%, the residential market is holding strong—think faster sales and higher competition.
Median Sales Prices by Area:
Hawaii Island: $549,575
North Kona: $1,267,705
South Kohala: $922,500
North Kohala: $1,217,000
Sales numbers peaked this year in March and April, but since then, we've seen a slight decrease in the number of homes sold. However, this drop-off is seasonal, and the median sales price remains strong, especially for properties in North Kona and South Kohala.
Opportunity for Buyers: With interest rates improving recently (hovering in the 6% range for many buyers), now may be an opportune time to jump in and put in that offer. While there has been talk of interest rates continuing to decline in the new year- staying current with active listings is important if you are ready to buy - your dream home might hit the market before your dream interest rate does... and remember that refinancing is an option if you want to take advantage of a lower interest rate down the road. I highly encourage you to talk lending strategy with your local lender. Less buyer competition as we approach the holidays may give you an edge, and if rates do decline in the coming months, your negotiating power may also decrease as an increase in demand will likely follow falling rates.
Opportunity for Sellers: The market is still strong, but pricing is key. You’ll need to price your property strategically & competitively to stand out. Sellers who have well-maintained homes in desirable locations will continue to attract interest with the right marketing plan—especially in areas where demand holds strong.
Hawaii Island Real Estate Market Sales Trends
The number of sales across Hawaii has shown some interesting shifts. For example, in North Kona, residential home sales increased by 17% in November 2024 compared to the previous year (378 vs. 323), signaling a healthy demand for homes in the area. North Kohala and North Hilo also saw significant increases in residential sales—22% and 46% respectively—pointing to strong buyer interest in these regions.
However, North Kona condos saw a slight dip in sales, down 4.53% from the previous year, suggesting that the condo market here may be weaker relative to the residential market.
When it comes to sales price trends, North Kona residential homes saw a 7.26% increase year-to-date for the median sales price, with the median sales price currently at $1,267, 705, while South Kohala experienced a 10.84% increase (currently the median sales price is $922,500).
On the condo side, North Kona prices rose by 17.12% (currently at $570,000), and South Kohala saw a 13.01% increase (currently at $1,347,500)—pointing to solid appreciation in both regions, despite the overall dip in number of sales.
Nerding out on real estate statistics is a surprisingly exciting way to spend an afternoon, in my humble opinion...but I know that this is not necessarily the popular opinion - so if you are still with me, bravo! To conclude there are still opportunities for buyers and sellers in this market! Buyers might benefit from improving rates and more inventory. Meanwhile, sellers can still take advantage of strong demand—just be sure your home is well-priced and ready to stand out.
Remember, Real estate isn’t just about the property itself—it’s about understanding the bigger picture: how the home, the market conditions, and the timing all fit together in today’s economy. It’s all connected!
Spark notes version? Here you go!
The Hawaii Island real estate market is showing some notable and important shifts. Condo inventory has more than doubled compared to last year (288 listings vs. 117), and the median sales prices have risen from $530,000 in November 2023 to $650,000 in November 2024. While condos are seeing slower movement, with days on the market at 60, residential sales are in higher demand, with a 21.11% absorption rate and median sales prices of $549,575 (island-wide). For a deeper dive into the numbers and insights on what this means for buyers and sellers, read the report above or reach out to me to chat in depth about your market.
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