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July 23rd, 2017 12:12 PM by Korby Matsen
The Kohala Coast is a majestic area located on the west coast of the Big Island of Hawaii. The Big Island received its name as to not confuse it between the State of Hawaii and the Island of Hawaii. The Kohala Coast is split into two areas, 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 June 2017 in Kohala increased dramatically over June2016, with 34 homes selling in June of this year, up from 19 homes selling in June 2016. That impressive increase in sales volume happened in both South and North Kohala, with both areas nearly doubling their sales count over 2016. North Kohala increased from 5 homes sold in June 2016 to 9 homes in June of this year and South Kohala rose from 14 homes sold in June 2016 to 25 homes this June. The number of condos sold in June followed the same pattern, almost doubling from 14 units last year to 27 units in June of this year.
With this dramatic monthly number increase, the year to date sales volume in 2017 has caught up to the 2016 numbers. There have been 165 homes sold so far this year, the same number that was sold by this time in 2016. This increase in June sales in both parts of Kohala has allowed the year-to-date volume in North Kohala to surpass the 32 homes sold in 2016, with 36 homes sold this year. In South Kohala the sales volume has come close to reaching the 2016 number, with 129 homes selling this year, down slightly from the 133 homes sold last year. The number of condos sold year-to-date was another bright spot, with 144 units sold this year, up impressively from 122 units sold in 2016.
As with the rise in sales volume of single family home in June 2017 over June 2016 in both North Kohala and South Kohala, the rise in median sales price also happened in both regions. The median sale price in South Kohala rose from $553,750 in June 2016 to $595,000 in June of this year, while in North Kohala, the median sales price in June 2017 increased to $650,000 from $585,000 in June 2016. The condo market also experienced a healthy price increase, with the May 2017 median sales price rising to $549,000 from $477,500 in June 2016.
The rise in the year-to-date median sales price numbers are a direct reflection of the monthly numbers, except for North Kohala. North Kohala was the only sector to see a decrease, and quite a decrease it was. The median year-to-date sales price in North Kohala dropped 19.35%, from $775,000 in 2016 to $662,000 this year; this kind of dramatic change can sometimes be expected when you have such a low sales volume. Meanwhile, South Kohala experienced a change in the other direction, with its median sales price increasing a notable 15.15% from $495,000 in 2016 to $570,000 this year, while the condo market had a similiar increase, rising 15.61%, from $442,000 in 2016 to $511,000 this year.
Analysis: The rise in sales volume in June 2017 is a dramatic change from the somewhat steady pace of sales in previous months. It remains to be seen if this is a trend or an aberration. One thing remains steady, and that is the upward trend in price appreciation.
If you are thinking of buying or selling a home anywhere on the Kohala Coast, contact me today. I will produce a customized market report for the neighborhood or area you are interested in. Mahalo.
May 2017 Kohala Coast Market Highlights
If you enjoyed this update, you may like Mauna Lani Resort Update for Q1 2017.