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September 16th, 2018 9:46 AM by Korby Matsen RB-21643
The Kohala Coast is located on the west coast of the Big Island of Hawaii. The Big Island got its name 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, containing the small towns of Hawi and Kapa’au, as well as the Kohala Ranch communities.
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 August 2018 in Kohala increased moderately over August 2017, with 34 homes selling in August this year, up from 23 homes selling in August 2017. This boost came from the increase in sales volume in South Kohala, as the volume in North Kohala dropped slightly from 3 homes sold in August 2017 to 2 homes this year, while South Kohala’s August 2018 number rose to 32 single-family homes from 20 homes last August. The number of condos sold in August 2018 was also a bright spot, with sales almost doubling over 2017, from 18 units last August to 35 units this year.
Along with the moderate increase in the monthly numbers, the year to date volume in 2018 has already surpassed the 2017 number in all market segments. There were 248 single-family homes sold this year, up from 213 homes being sold by this time in 2017. This increase was felt in both parts of Kohala with the number of single-family homes sold in North Kohala increasing marginally, (from 42 homes in 2017 to 48 homes this year) while the sales volume in South Kohala had an even larger increase (from 171 single-family homes sold last year to 200 homes this year). The year-to-date number of condos sold is also ahead of last year’s pace, rising from 185 units sold last year, to 220 units sold in 2018
Although the increases in the number of single-family homes sold in August 2018 were felt in all regions, the change in median sales price was not felt everywhere. The median sale price in North Kohala rose from $640,000 in August 2017 to a spectacular $3,950,000 in August of this year, while in South Kohala, the median sales price actually experienced a slight decrease, falling from $604,000 in August 2017 to $577,500 in August this year. The change in median sales price in North Kohala can easily be skewed in one direction or the other when dealing with such a low volume of sales. The condo market also experienced a modest price increase, with the August 2018 median sales price rising to $585,000 from $532,500 in August 2017.
As with the monthly sales volumes, the year-to-date median sales price also rose across all market segments. The median year-to-date sales price in the condo market experienced the smallest gain, rising a modest 5.00% from $500,000 in 2017 to $535,000 this year. Meanwhile, South Kohala’s single family home median sales price also received a modest gain, increasing a 6.46% from $558,900 in 2017 to $595,000 this year. The single-family homes in North Kohala saw the largest increase, rising 33.95%, from $645,000 in 2017 to $864,000 this year. Again, this had more to do with the volatility of a low volume market, than any kind of trend.
Analysis: As we progress through 2018, both the monthly and year-to-date sales volumes continue to be improvements over the 2017 numbers. With a 3 to 4 months’ supply of inventory in both the single-family home and condo markets, we are entering into a Buyers’ 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. To view more real estate updates from different areas of the Kohala Coast, visit the Market Update Page on my website. Mahalo.
August 2018 Kohala Coast Market Highlights
If you enjoyed this update, you might like North Kohala Market Update for Q2 2018.