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May 21st, 2017 10:26 AM by Korby Matsen RB-21643
The Kohala Coast is a spectacular 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, containing the small towns of Hawi and Kapa’au, as well as the Kohala Ranch communities on the south end.
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 April 2017 in Kohala dropped significantly over April 2016, with 20 homes selling in April this year, down from 30 homes selling in April 2016. Although there was a decrease in both parts of Kohala, the major part of the decrease happened in South Kohala, as the volume in North Kohala only decreased by 2 homes (from 5 homes down to 3). South Kohala saw its sales volume in April 2017 decrease by a third over April of last year (down from 25 homes to 17). The number of condos sold year over year in April also saw a decline, dropping from 34 units last year to 25 units this year.
As with the monthly number, the year-to-date volume also saw a decrease in 2017, with 98 homes being sold this year, as opposed to 117 homes being sold by this time in 2016. Like the monthly number, this decrease also happened in both parts of Kohala, with sales volume in North Kohala, decreasing from 20 homes sold in 2016, to 18 homes this year. South Kohala’s year-to-date volume saw an even larger drop, with 80 homes being sold this year, down from 97 homes sold by this time last year. The number of condos sold year-to-date was the only bright spot, with volume rising slightly from 86 units sold last year, to 92 units sold in 2017.
While the volume of single family homes sold in April 2017 decreased compared to April 2016 in both parts of Kohala, the change in median sales price varied from region to region. The median sale price in South Kohala rose from $525,000 in April 2016 to $630,000 in April of this year, while in North Kohala, the median sales price in April 2017 dropped a dramatic $240,000 to $850,000 from $1,090,000 in April 2016. This type of dramatic change in median price is quite common when dealing with such a low volume of sales. The condo market also saw their prices move in the downward direction, with the April 2017 median sales price declining a slight $12,000 to $425,000 from $437,000 in April 2016.
As with April monthly median sales price, the year-to-date numbers were also mixed. But the only area that saw a decrease in year-to-date sales price was North Kohala, with a whopping 29.01% decrease in its year-to-date median sales price, decreasing from $882,500 in 2016 to $626,000 this year, again, this had more to do with the low number of sales in that area. The other two market segments saw increases, with single family homes in South Kohala increasing significantly, from $483,000 in 2016 to $594,000 this year, an increase of 22.98%. The median year-to-date sales price in the condo market also increased, albeit by a smaller amount, rising a modest 9.83% from $432,000 in 2016 to $475,000 this year.
Analysis: As we head deeper into 2017, sales volume in all segments continues to lag compared to 2016. But the median sales price is also continuing its trend of rising over last year’s numbers, except for North Kohala, which is more of an aberration than a trend. So even though prices may be rising, the abundance of available inventory continues to make the Kohala Coast a Buyer’s Market.
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.
April 2017 Market Highlights
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