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June 14th, 2020 10:21 AM by Korby Matsen
The Kohala Coast is the spectacular area located on the west coast of the Big Island of Hawaii. The Big Island received its name as to differentiate 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, containing the small towns of Hawi and Kapa’au, as well as the Kohala Ranch communities on the south end.
South Kohala begins just south of Kohala Ranch and covers the major, world class resorts of Mauna Kea, Mauna Lani and Waikoloa Beach Resorts’, 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 Kohala in May 2020 decreased significantly over last May, with just 8 homes selling in May this year, down from 43 homes selling in May 2019. This decrease in sales volume was felt in both in North and South Kohala, with the South Kohala total falling from 36 homes sold in May 2019 to just 6 homes sold in May this year, while the volume in North Kohala decreased from 7 homes sold last May to 2 homes this year. The number of condos sold year over year in May also had a dramatic decrease, falling to 10 units this year from 30 units last May.
Even with the great 1st Quarter we had, the monthly decreases caused by the pandemic have caused the year-to-date volume to be down in all markets. There were 129 single-family homes sold this year, down from 137 homes sold by this time in 2019. The sales volume decrease in South Kohala was minimal, with the number dropping from 113 homes sold last year to 107 homes selling this year. The North Kohala decrease was even less significant, with 22 homes sold this year, down from 24 homes sold last year. The number of condos sold year-to-date experienced the most dramatic decrease, falling from 146 units sold last year, to 98 units sold in 2020.
Although the monthly sales volume of single-family homes sold in Kohala in May 2020 was down in all markets compared to May 2019, the change in median sales price was in the opposite direction. The median sale price in South Kohala rose from $570,000 in May 2019 to $693,000 in May of this year, while in North Kohala, the median sales price increased from $635,000 in May 2019 to $788,000 this year. The condo market also saw an increase, with the May 2020 median sales price rising to $622,500, from $530,000 in May 2019.
The changes to the year-to-date median sales prices did not mirror the monthly numbers. The only market segment to see a increase was the condo market in South Kohala, which rose an amazing 20.54%, from $522,000 in 2019, to $629,500 this year. The median year-to-date sales price in the single-family home market went in the other direction, with South Kohala falling a slight 2.12%, from $612,000 in 2019 to $599,000 this year. The North Kohala experience the largest decrease for its year-to-date median sales price, falling a moderate -11.25% from $946,500 in 2019 to $840,000 this year.
Analysis: As expected, the Covid-19 pandemic caused a sharp decrease in sales volume across all markets in Kohala. The strong 1st quarter we had was not enough to keep the year-to-date numbers positive. The year-on-year monthly price appreciation was somewhat surprising, and it remains to be seen how the ongoing emergency proclamations will affect the market in the coming months.
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 2020 Kohala Market Highlights
If you enjoyed this update, you may like Waikoloa Beach Resort Market Update for Q1 2020.