Quick Answer: The Kona-Kohala Coast luxury real estate market in 2024 is normalizing after years of unprecedented appreciation, with more sustainable price growth and gradually increasing inventory. While interest rates are stabilizing, affordability remains a concern, particularly for those considering a second home or vacation rental. Acting quickly on desirable properties remains important, and working with a knowledgeable local expert is essential in navigating these evolving market dynamics.
Key Takeaways: Navigating the Kona-Kohala Coast Luxury Market in 2024
- Market Normalization: The market is shifting from bidding wars toward more balanced conditions, with slower but steady appreciation. Buyers have more negotiating room than in recent years.
- Stabilizing Rates: Interest rates appear to be settling, offering greater predictability for financing luxury purchases and vacation rentals.
- Affordability Challenges: Despite normalization, high median home prices on the Big Island, particularly along the Kona-Kohala Coast, require careful financial planning.
- Persistent Low Inventory: While inventory has improved, the supply of luxury homes and condominiums remains limited, requiring decisive action from buyers.
- Technology’s Role: Digital tools continue to enhance market transparency and efficiency, but they complement rather than replace experienced local guidance.
- Expert Guidance Is Essential: A seasoned Kona-Kohala Coast real estate professional can interpret market nuances, negotiate effectively, and help secure the right Hawaiian property.
Over nearly two decades selling luxury homes on the Kona-Kohala Coast, I have worked with hundreds of affluent individuals considering Hawai‘i as a second home or vacation rental investment. One of the most common questions I hear is: “What is really happening in the market, and how does it affect my decision to buy or sell?”
The answer is not guesswork. It is based on careful analysis of market data, long-term trends, and the unique dynamics of our luxury resort communities. Below are answers to the most common questions buyers and sellers are asking about the 2024 market.
Is the Kona-Kohala Coast Luxury Market Normalizing?
Quick Answer: Yes. The Kona-Kohala Coast luxury market is clearly normalizing, moving away from the rapid pace of the past several years toward more sustainable growth.
In recent years, the market experienced extraordinary appreciation, in some cases reaching 20 to 30 percent year over year. Intense bidding wars and historically low inventory levels defined that period. While those conditions strongly favored sellers, they created challenges for buyers, especially those seeking second homes or vacation rental properties.
In 2024, appreciation has moderated to more typical levels. Homes are spending more time on the market compared to peak pandemic years, and buyers have greater opportunity for due diligence and negotiation. This shift does not signal weakness. Instead, it reflects a healthier and more balanced market environment.
For sellers, realistic pricing aligned with current comparable sales is critical. For buyers, normalization offers a chance to enter the market with less competition and fewer rushed decisions. Overall, the Kona-Kohala Coast luxury segment remains fundamentally strong, supported by lifestyle appeal, limited developable land, and sustained demand from mainland and international buyers.