The Kohala Coast is a majestic area located on the west coast of the Big Island of Hawaii. The Big Island is called that as to not confuse it between the State of Hawaii and the Island of Hawaii. Kohala is made up of two regions, North Kohala and South Kohala, with North Kohala covering the more rural, northern end of the island.
South Kohala covers the major, world class resorts of Mauna Kea Resort, Mauna Lani Resort and Waikoloa Beach Resort, the small town of Waikoloa Village, located 6 miles inland from the resorts and Waimea, the beautiful town in the interior Waimea Valley. You can find market updates for many of these areas by visiting the Market Update Page on my website.
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The number of single family homes sold in October 2017 on the Kohala Coast increased considerably from October 2016, with 31 homes selling in October 2017, up from 18 homes last year. That increase was enjoyed in both South Kohala, with 25 homes selling, up from 15, and North Kohala, with 6 homes selling, up from 3. The condo market also saw an increase, rising from 23 units sold in October 2016 to 25 units in October 2017.
As with the increase in the number of single family homes sold in October, the overall year-to-date volume is also up in 2017, with 265 homes being sold this year, up slightly from 263 homes sold this time last year. But the increase in the Kohala sales volume was not felt in all regions. The number of single family homes in North Kohala increased from 47 homes sold by this time last year to 52 homes this year, but South Kohala however, lost a little ground, with the number of single family homes falling from 216 homes last year to 213 homes sold this year. The number of condos sold year-to-date also enjoyed a healthy increase in volume, up 29 units to 237 units sold this year from 208 units sold in 2016.
The change in median price this October over last year was, however a mixed bag. The median sale price in North Kohala experienced a spectacular increase, rising from $325,000 in October 2016 to $835,000 in October of this year. This type of wild change in median sales price is quite common in a low sales volume environment such as North Kohala. The South Kohala median sales price in October 2017 was also up, jumping to $608,000 this year from $540,000 in October 2016. The condo market median sales price was the only segment to experience a downturn, dropping from $486,000 in October 2016 to $383,000 this year.
Even with the large jump in October’s median sales price, single family homes in North Kohala had a decrease in their year-to-date median sales price, decreasing a dramatic 13.13% from $750,000 in 2016 to $651,500 this year. While the single family homes in South Kohala had an increase of 13.23%, going from $499,000 in 2016 to $565,000 this year. The condo market also saw its year-to-date median sales price increase, rising a slight 4.30% from $465,000 in 2016 to $485,000 this year.
Analysis: Aside from the wild fluctuations in the North Kohala region, the Kohala Coast market continues to move upwards in all categories. Although sales volume has not increased drastically, it has slowly eaten away at the inventory to the point that we are now in a balanced market. The median sales price of condos has slowed to single digit growth in recent months, but single family home prices have been increasing at a 12% annual rate for over six months. For those thinking of entering the market, the time is now.
If you are thinking of buying or selling a home on the Kohala Coast, contact me today. I will produce a customized market report for the neighborhood or area you are interested in buying or selling in. Mahalo.
October 2017 Market Highlights
- No. of single family homes sold in North Kohala – 6
- No. of single family homes sold in South Kohala - 25
- No. of condo units sold in Kohala - 25
- YTD No. of single family homes sold in North Kohala – 52
- YTD No. of single family homes sold in South Kohala – 213
- YTD No. of condo units sold in Kohala - 237
- Median sales price of a single family home in North Kohala - $835,000
- Median sales price of a single family home in South Kohala - $608,000
- Median sales price of a condo in Kohala - $383,000
- YTD median sales price of a single family home in North Kohala - $651,000
- YTD median sales price of a single family home in South Kohala - $565,000
- YTD median sales price of a condo in Kohala - $485,000
If you enjoyed this update, you may like Mauna Kea Resort Update for Q3 2017.
First published at www.ViewHawaiiLuxuryHomes.com/MarketUpdates
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