Quick Answer: Big Island real estate in September 2023 shows fewer sales across all property types compared to last year, but condominiums and land are holding their value, with condos seeing price increases. Days on market are up, giving buyers more time to make decisions. The Kohala Coast luxury market, while part of these trends, often demonstrates unique resilience in specific micro-markets like Mauna Kea or Hualalai.
Key Takeaways: Kona-Kohala Coast Market Insights for Luxury Buyers and Sellers
- Slower Sales Pace: Across the entire Big Island, the number of sales for single-family homes, condos, and land decreased in September 2023 compared to the previous year, indicating a general cooling. This trend was also observed in the resort communities of the Kohala Coast.
- Condos Remain Strong: Despite fewer transactions, the median sales price for condominiums island-wide increased by 2.8% in September and 4.7% year-to-date, signaling sustained demand, especially for properties with vacation rental potential on the Kona-Kohala Coast.
- Single-Family Homes Cooling: The median sales price for single-family homes saw a slight decrease of 1.9% in September and 6.7% year-to-date, coupled with a significant drop in sales volume and longer days on market.
- Land Value Appreciation: Land parcels experienced a 25% increase in median sales price in September and a 12.9% increase year-to-date, even as the number of sales declined, suggesting higher-value transactions or a shift in available inventory.
- Increased Days on Market: All property types are taking longer to sell, with median days on market increasing across the board. This offers buyers more negotiation leverage and time for due diligence.
Over nearly two decades selling luxury homes on the Kona-Kohala Coast, I have worked with hundreds of affluent individuals, many based on the mainland, considering Hawaii as a second home or vacation rental investment. One of the most common questions I hear is: “Should I act now or wait to buy or sell on the Big Island?”
The answer is not magic. It is a system. What I call the Polimino Market Clarity System is the result of years of testing, refinement, and proven results. Rather than simply describing the system, the following sections address the most common questions buyers and sellers are asking about the Big Island’s September 2023 real estate market, along with straightforward answers that explain our approach.
Are Big Island Home Prices Dropping, or Is It Just a Temporary Dip?
Quick Answer: Single-family home prices on the Big Island saw a slight monthly dip and a more significant year-to-date decrease, suggesting a cooling trend rather than a sharp drop. Specific luxury micro-markets on the Kona-Kohala Coast may show different patterns.
For single-family homes across the entire Big Island, the median sales price in September 2023 was $520,000, a 1.9% decrease compared to September 2022. Year-to-date, the median sales price is down 6.7% to $560,000. The number of sales decreased by 13.9% for the month and 24.3% year-to-date. Homes are also taking longer to sell, with median days on market up 25% monthly and 41.7% year-to-date.
This reflects a return to a more balanced market after the heightened activity of recent years. Buyers have more options and less pressure to make rapid decisions. For luxury properties in areas such as Mauna Lani Resort, island-wide trends may be less pronounced, as high-end demand often operates on its own dynamics.
Real numbers: While the island-wide median for single-family homes dropped to $520,000 in September, a unique oceanfront estate in Kukio could still command a premium, demonstrating that location and exclusivity often buffer against broader market shifts.
Is the Kohala Coast Condo Market Still Strong for Vacation Rentals?
Quick Answer: The Kohala Coast condo market, particularly for vacation rentals, remains robust. Median sales prices increased both monthly and year-to-date, despite a decrease in the number of sales.
In September 2023, the median sales price for condominiums island-wide was $560,000, an increase of 2.8% compared to September 2022. Year-to-date, the median sales price is up 4.7% to $560,000. Although the number of sales decreased by 18.2% both monthly and year-to-date, demand remains strong enough to support price appreciation.
Many buyers view condominiums as investment properties capable of generating rental income. Properties within Waikoloa Beach Resort or Mauna Kea Resort remain highly sought after for their amenities and established rental programs. Median days on market increased modestly, giving buyers slightly more time, but well-priced units continue to sell efficiently.
Real example: A two-bedroom condo in Mauna Lani Resort, priced correctly and supported by a strong rental history, can still attract multiple offers. While the island-wide median condo price was $560,000, luxury units in Hualalai Resort often sell for significantly more due to premium amenities and location.
Should I Act Now on Buying Land on the Big Island?
Quick Answer: Land sales saw significant price increases in September and year-to-date. Fewer transactions suggest that higher-value parcels are driving the median upward.
In September 2023, the median sales price for land was $400,000, a 25% increase compared to September 2022. Year-to-date, the median price rose 12.9% to $395,000. At the same time, the number of sales declined by 12.7% monthly and 25.1% year-to-date. Median days on market increased from 95 to 105 days monthly and from 80 to 89 days year-to-date.
This pattern suggests that while fewer land transactions are occurring, the parcels that are selling tend to be higher value. On the Kona-Kohala Coast, land remains attractive for buyers planning to build a custom home or hold a long-term asset. Factors such as views, access, zoning, and proximity to resorts like Mauna Kea or Kukio significantly influence value.
Real example: A prime ocean-view lot near Mauna Kea Resort, even if priced above the island median of $400,000, may represent a strong long-term investment due to scarcity and location within a luxury enclave.
The Bottom Line: Navigating the Kona-Kohala Coast Market
The Big Island real estate market in September 2023 presents a nuanced picture. Transactions are down across all property types, and single-family homes are experiencing a cooling trend. However, condominiums and land are demonstrating resilience and price growth. Increased days on market give buyers more time to evaluate opportunities, while sellers must adopt precise pricing and marketing strategies.
Understanding island-wide trends is essential, but luxury real estate on the Kona-Kohala Coast requires careful micro-market analysis. Whether considering a vacation rental in Mauna Lani, a second home in Hualalai, or land near Kukio, a personalized strategy grounded in current data and local expertise is critical.
It would not be surprising to see the condominium market on the Kona-Kohala Coast continue performing strongly in the coming months, driven by sustained demand for lifestyle and rental income potential.
Frequently Asked Questions
Q: Are Big Island home prices dropping?
A: The median sales price for single-family homes decreased 1.9% in September 2023 compared to the previous year and 6.7% year-to-date. This reflects a cooling trend rather than a sharp decline, with luxury micro-markets often showing greater stability.
Q: Is the Kohala Coast condo market still strong for vacation rentals?
A: Yes. Median condo prices increased 2.8% in September and 4.7% year-to-date, indicating continued buyer interest despite fewer overall sales.
Q: How long does it take to sell a luxury home now?
A: Median days on market for single-family homes increased to approximately 30 days in September 2023. Luxury properties may follow different timelines, but buyers generally have more time than in previous years.
Q: What is my Mauna Kea condo worth?
A: While the island-wide median condo price was $560,000 in September, the value of a specific Mauna Kea condo depends on views, condition, amenities, and recent comparable sales within the resort.
Q: Can I manage a Hawaii rental property from California?
A: Yes. Many mainland owners successfully manage Hawaii vacation rentals remotely, often working with local property management companies to handle operations and compliance.