Quick Answer: July’s market data for the Kona-Kohala Coast shows a stabilizing trend with fluctuating median sales prices and steady buyer demand. While median prices dipped from June, luxury resorts such as Kohanaiki, Kūkiʻo, and Hualālai continue to demonstrate robust activity, suggesting targeted investment opportunities remain strong.
Key Takeaways: Navigating the July 2024 Kona-Kohala Market
- Luxury Resilience: High-end resorts, particularly Kohanaiki, Kūkiʻo, and Hualālai, maintained strong sales, proving their enduring appeal even as broader market metrics shift.
- Price Adjustments: Median sales prices for both single-family homes and condominiums decreased from June, and in some cases from July 2023, indicating market recalibration rather than collapse.
- Days on Market Increase: Properties are generally taking longer to sell, with median days on market rising across most segments, giving buyers more time for due diligence.
- Geographic Nuances: South Kohala experienced a more pronounced decrease in median sales prices for both homes and condos compared to North Kona, highlighting the importance of hyper-local analysis.
- Steady Demand: Despite price fluctuations, buyer interest remains consistent, particularly for well-positioned luxury properties, reinforcing the Big Island’s appeal as a premier destination.
Over nearly two decades selling luxury homes on the Kona-Kohala Coast, I have worked with hundreds of discerning buyers and sellers. One of the most common questions I hear is: “Should I buy or sell my luxury property now, given the latest market numbers?”
The answer is not magic—it is a system. What I call the Polimino Market Insight System is the result of years of testing, refinement, and proven results. Rather than simply describing the system, let me address the most common questions luxury buyers and sellers ask about July’s market trends and provide straightforward insights.
Are Big Island Luxury Homes Still a Good Investment, Even with Price Drops?
Quick Answer: Yes, luxury homes on the Kona-Kohala Coast remain a strong long-term investment, especially in premier resorts, despite recent median price adjustments.
Median price shifts often represent recalibration rather than collapse. July data shows a 13% decrease in median single-family home prices in North Kona from June, and a 13% to 16% decrease in South Kohala. However, North Kona’s median price remains 14% higher than July 2023. This indicates that while the rapid pace of recent years has cooled, underlying demand—particularly in resorts such as Kohanaiki, Hualālai, and Kūkiʻo—persists.
In July, the resorts nearest Kona recorded seven home sales, with Kohanaiki accounting for four of those transactions. This concentrated activity in the ultra-luxury segment demonstrates that well-positioned properties continue to command significant value.
How Do July’s Longer Days on Market Affect My Decision to Sell?
Quick Answer: Longer days on market require precise pricing and exceptional presentation from sellers, while offering buyers slightly greater negotiation leverage and time for due diligence.
In July, median days on market for North Kona single-family homes increased from 39 days in June to 56 days. In South Kohala, the figure rose from 13 days to 26 days. This reflects a maturing market rather than a decline. Homes are no longer selling within days without contingencies.
For sellers, accurate pricing and professional marketing are critical from the outset. For buyers, this environment allows for thorough inspections, detailed review of disclosures, and thoughtful negotiations. A more balanced market often leads to more sustainable transactions.
Is Now a Good Time to Buy a Luxury Condo on the Kohala Coast?
Quick Answer: For strategic buyers, July’s condo price decreases—particularly in South Kohala—may present an attractive opportunity.
South Kohala condominiums experienced a 13% decrease in median sales price from June and a 5% decrease year over year. North Kona condos declined 4% from June and 10% year over year. These adjustments suggest sellers are recalibrating expectations, creating favorable conditions for well-prepared buyers.
In July, the northern resorts—including Waikoloa, Mauna Lani, and Mauna Kea—closed eight condominium sales. Although the median price in South Kohala dropped to $1,050,000, buyer activity indicates continued confidence in well-managed luxury communities.
What Do the Differences Between North Kona and South Kohala Mean?
Quick Answer: Variances between North Kona and South Kohala underscore the importance of hyper-local market analysis.
North Kona’s single-family median price, while down from June, was up 14% year over year. South Kohala’s was down 16% year over year. These differences reflect variations in inventory levels, buyer profiles, and property types.
In July, North Kona recorded 24 single-family home sales with a median price of $1,250,000, while South Kohala had 16 sales at a median of $1,375,000. For condominiums, North Kona posted 37 sales at $675,000 compared to South Kohala’s 28 sales at $1,050,000. These figures demonstrate that each submarket requires a tailored strategy.
Is Market Stabilization a Good Sign?
Quick Answer: Yes. Stabilization generally reflects a healthier, more sustainable market environment.
Stabilization suggests the market is finding equilibrium after periods of rapid growth. While median prices decreased from June to July, buyer demand remains steady. Slightly longer days on market indicate a more deliberate transaction process, benefiting both buyers and sellers.
A balanced market reduces volatility and allows for strategic, data-driven decisions rather than reactive ones.
The Bottom Line: Strategic Action in a Stabilizing Market
The July update confirms a Kona-Kohala Coast market that is finding its footing. For luxury buyers and sellers, this is not a time for hesitation but for informed, strategic action. Whether acquiring a second home in Hualālai or preparing to sell in Mauna Lani Resort, understanding micro-market dynamics is essential.
Frequently Asked Questions
Q: Is the Big Island real estate market stabilizing?
Yes. The market is showing signs of stabilization, meaning reduced volatility and more balanced conditions. Buyers have more time, and sellers must prioritize pricing and presentation.
Q: What do increasing days on market mean for sellers?
An increase in median days on market highlights the importance of competitive pricing, professional marketing, and compelling property positioning.
Q: Are luxury resorts still performing well?
Yes. July data shows strong activity in premier resorts such as Kohanaiki and Hualālai, demonstrating resilience in the ultra-luxury segment.
Q: Do recent median price changes affect long-term value?
Short-term fluctuations are normal in any real estate cycle. Historically, well-located luxury properties on the Kona-Kohala Coast have demonstrated strong long-term value retention.
Q: Should I wait for prices to drop further before buying?
Timing the exact bottom of a market is difficult. With recent price adjustments already reflected in July’s data, strategic buyers may find favorable opportunities now, particularly when focusing on properties aligned with long-term goals.