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November 12th, 2017 9:58 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.
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The number of single family homes sold on the Kohala Coast in September 2017 decreased noticeably from September 2016, with 20 homes selling in September 2017 down from 27 homes last September. That decrease only happened in South Kohala (from 23 homes down to 16), with North Kohala’s volume remaining unchanged (4 homes sold in both years). The condos market, alternatively, had a remarkable increase, up from 15 units sold in September 2016 to 27 units in September 2017.
As with decrease in the number of single family homes sold in September, the overall year-to-date volume also saw a decrease in 2017, with 233 homes being sold this year, down from 245 homes last year. This decrease however, did not happen in both parts of Kohala. The number of single family homes in North Kohala increased slightly from 44 homes sold by this time last year to 46 homes this year. South Kohala, however, lost ground, with the number of single family homes falling from 201 homes last year to 187 homes sold this year. As with the monthly number, the condo year-to-date volume also improved, rising to 212 units this year from 185 units sold in 2016.
Like the volume numbers, the change in median sales price was also a mixed bag. The median sale price in North Kohala saw the wildest swing, dropping from $1,162,000 in September 2016 to $530,000 in September of this year. This type of wild changes in median sales price can be expected in this type of low sales volume environment. The South Kohala median sales price in September 2017 saw an modest increase to $582,000 from $535,000 in September 2016. The condo market median sales price also experienced a dramatic change, decreasing an astounding $265,000 to $465,000 from $730,000 in September 2016.
Except for the dramatic drop in North Kohala, the year-to-date median sales price continued in an upward trend. Single family homes in North Kohala decreased 16.77% from $775,000 in 2016 to $645,000 this year. While in South Kohala, single family homes had a steady increase of 12.73%, going from $499,000 in 2016 to $562,500 this year. The condo market had a slight increase, rising 5.16% from $465,000 in 2016 to $489,000 this year.
Analysis: As it has been throughout 2017, the numbers on the Kohala Coast continue to be a mixed bag. The number of condos sold is up over last year, but median sales price is down. I believe this is due to the lower priced condos being sold at a much faster pace than the higher priced ones, causing a drop in the median sales price, not due to condo prices actually dropping. The number of single family homes sold in South Kohala is up slightly over last year and the median sales price is as well, but there is still plenty of inventory, so it is still a good time to get into the 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 my Market Update Page. Mahalo.
September 2017 Market Highlights?
If you enjoyed this update, you may like Waikoloa Beach Resort Market Update for Q3 2017.