A December 2025 Big Island Update: Inventory is Up, Showings are Strong & Luxury Listings are Growing
by Dan Polimino
As we wrap up 2025 and look toward the new year, the question I hear most often from clients and colleagues alike is: “Is the Hawaii housing market balanced?”
With shifting interest rates and national headlines painting a grim picture, it’s easy to feel uneasy. However, when we look at the specific data for the Big Island, the story isn’t one of a “crash,” but rather a significant and healthy rebalancing.
Here is what you need to know about the current state of Hawaii real estate as we head into 2026.
1. Inventory is Up: More Choices for Buyers
For the last few years, the story of Hawaii real estate was “low supply, high demand.” That has changed. We are seeing a noticeable uptick in inventory across the board—from residential homes to condos.
Notably, the luxury market (properties $3M+) has seen a surge in new listings. While this means more competition for sellers, it provides a much-needed breathing room for buyers who previously felt rushed into making offers.
2. Showings Remain Strong
You might think that higher inventory means interest has died down, but that isn’t what we’re seeing on the ground. Showings are still very strong. People still want to be in Hawaii. The “Aloha Spirit” and the lifestyle the Big Island offers remain a top priority for families and retirees. The difference now is that buyers are being more selective. They are taking the time to find the right property rather than settling for the first thing that hits the MLS.
3. The Return of Negotiating Power
If you’ve been waiting for a “buyer’s market,” we are the closest we’ve been in years. Because homes are staying on the market longer, sellers are becoming more flexible. We are seeing a return to:
Price Adjustments: Sellers are more willing to price realistically or drop prices if they don’t get immediate traction.
Credits & Repairs: Negotiation for closing cost credits or specific repairs is back on the table.
Contingencies: Buyers are once again able to include home inspections and other protections in their contracts without fear of being immediately outbid.
4. The Luxury Market Pulse
While the median-priced market is normalizing, the luxury resort sector is moving at its own pace. While inventory is growing there too, “trophy properties” in prime locations still command attention. (Stay tuned for my upcoming 2025 Luxury Market Report for a deep dive into the $3M+ price bracket).
The Bottom Line: Normalization, Not a Crash
The word “crash” implies a sudden, uncontrolled drop in value. What we are seeing is normalization. The frantic, over-asking-price frenzy of 2022-2024 has transitioned into a more stable environment where both parties have a seat at the table.
For Sellers: Success in 2026 will depend on being “market-ready.” Your home needs to be staged perfectly and priced accurately from day one. You can no longer “test” a high price—the market will simply ignore it.
For Buyers: This is your window. With more inventory and more room to negotiate, you have the leverage you’ve been waiting for.
Want to know what your Big Island home is worth in today’s shifting market? Contact me today for a custom valuation or a curated list of the best opportunities currently on the market.
