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November 24th, 2016 9:31 AM by Korby Matsen RB-21643
The Kohala Coast is located on the west coast of the Big Island of Hawaii. It is called the Big Island as to not confuse it between the State of Hawaii and the Island of Hawaii. Kohala 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.To view all homes for sale on the Kohala Coast visit my Home Search Page.To instantly find out what your Kohala Coast Home is worth visit my Home Valuation Page.Learn more about our Vacation Rental Management Program on my Vacation Rental Page.
The number of single family homes sold in October 2016 on the Kohala Coast decreased slightly from October 2015, with 24 homes selling in October 2016 down from 18 homes in October 2015. That decrease was only experienced in South Kohala (from 21 homes down to 15), as North Kohala’s low volume remained the same at 3 homes sold in both years. The condo market was the exception as volume surged upwards by 10 units, rising from 13 units sold in October 2015 to 23 units in October 2016.
As with the decrease in the number of single family homes sold in October, the overall year-to-date volume also decreased in 2016, with 260 homes being sold this year, down slightly from 268 homes sold this time last year. Even with the overall decrease in the Kohala number, the number of single family homes in North Kohala increased from 36 homes sold by this time last year to 47 homes this year. South Kohala, however, lost ground, with the number of single family homes falling from 232 homes last year to 216 homes sold this year. The number of condos sold year-to-date also saw an increase in volume, up 25 units to 185 units sold this year from 160 units sold in 2015.
The change in median price this October over last year was also a mixed bag. The median sale price in North Kohala was almost cut in half, dropping from $610,000 in October 2015 to $325,000 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 this. The South Kohala median sales price in October 2016 moved in the other direction, jumping to $540,000 this year from $450,000 in October 2015. The condo market median sales price also experienced a modest increase, from $392,000 in October 2015 to $486,000 this year.
The mixed bag theme continued with the year-to-date numbers. Single family homes in North Kohala had the largest increase in its year-to-date numbers, increasing an astounding 28.76% from $582,500 in 2015 to $750,000 this year. While the single family homes in South Kohala had only a slight increase of 2.78%, going from $485,500 in 2015 to $499,000 this year. The condo market was the only number that went down, decreasing a slight 1.06% from $470,000 in 2015 to $465,000 this year.
Analysis: Even with the volume of single family home sales decreasing in both the monthly and year-to-date numbers, the median sales price in both those categories still managed to increase. Conversely, the condo market saw sales volume surge upward in both the monthly and year-to-date categories, while only the monthly median sales prices increased. While this upward trend in pricing is encouraging, a sustained period of increased sales will be required to “eat thru” the amount of inventory currently available. Until then, the market on the Kohala Coast will continue to be a Buyers market.
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. To read market reports for other areas of the Kohala Coast, visit the Market Update Page. Mahalo.
October 2016 Market Highlights