Quick Answer: The Kona-Kohala Coast real estate market in February 2023 reflects a slowdown in sales volume across single-family homes, condominiums, and land compared to the previous year. However, median sales prices continue to rise, supported by limited inventory and sustained demand for luxury properties.
Key Takeaways: Kona-Kohala Coast Market Insights
- Sales Volume Down: Sales across property types declined approximately 35% year over year.
- Median Prices Up: Single-family home median prices increased 11.5%, while condominium median prices rose 19%.
- Limited Inventory: Ongoing supply constraints continue to support pricing despite fewer transactions.
- Days on Market Increasing: Properties are taking longer to sell, indicating a shift toward a more balanced market.
- Outlook: Continued moderation in activity is expected, with price stabilization rather than sharp declines.
What Is Happening with Single-Family Home Sales?
Quick Answer: Sales volume has declined year over year, but median prices have continued to increase.
Compared to the same period last year, single-family home sales decreased significantly, reflecting broader economic factors such as rising interest rates and inflation. Despite the reduction in transactions, the median sales price rose from $590,000 to $658,000, an increase of 11.5%.
Days on market increased from 28 to 35 days, giving buyers more time to evaluate properties. New listings also declined, contributing to limited inventory and supporting price stability.
How Are Condominiums Performing?
Quick Answer: Condo sales declined, but median prices experienced strong growth.
Condominium sales followed a similar pattern to single-family homes, with fewer transactions year over year. However, the median condo price rose from $445,000 to $530,000, a 19% increase.
Longer marketing times and reduced new listings indicate a shift from the rapid pace seen in prior years. Nevertheless, strong demand for well-located vacation rental properties continues to support value growth in key resort communities.
What Is the Outlook for Land Sales?
Quick Answer: Land sales volume declined, but median prices continued to rise.
Land transactions decreased year over year, mirroring trends in residential property sales. Despite fewer sales, the median land price increased from $445,000 to $530,000.
Limited availability of prime lots in desirable communities continues to sustain pricing. While buyers may experience less competition than in previous years, quality parcels remain in demand.
What Does This Slowdown Mean for Buyers and Sellers?
Quick Answer: Buyers have more negotiating power and time, while sellers must price strategically and present properties carefully.
The current market reflects a normalization from an unusually rapid growth period. Buyers benefit from reduced urgency and greater opportunity for due diligence. Sellers, however, must be realistic in pricing and ensure properties are well-prepared and competitively positioned.
Although the pace of transactions has slowed, limited inventory continues to provide price support, particularly for high-quality luxury properties.
Will Rising Interest Rates Cause Significant Price Drops?
Quick Answer: A substantial price decline appears unlikely given ongoing supply constraints and sustained demand for Kona-Kohala Coast real estate.
Higher interest rates and inflation have contributed to reduced transaction volume. However, the Kona-Kohala Coast market operates within a unique environment characterized by limited developable land and strong appeal to affluent buyers.
Rather than a sharp correction, the data suggests continued moderation and price stabilization. Inventory levels remain relatively low, providing a structural floor that supports long-term property values.
