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August 20th, 2017 4:15 PM by Korby Matsen RB-21643
The Kohala Coast is a majestic 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.
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 July 2017 in Kohala had a slight decreaseover July 2016, with 22 homes selling in July of this year, down from 25 homes selling in July 2016. That decrease in sales volume happened in both South and North Kohala, with North Kohala decreasing by just one sale, from 4 homes sold in July 2016 to 3 homes in July of this year and South Kohala decreasing by just 2 sales, from 21 homes sold in July 2016 to 19 homes this July. On a brighter note, the number of condos sold in July went in the other direction, increasing marginally from 17 units last year to 22 units in July of this year.
This decrease in the monthly numbers put the skids on the hope that the year-to-date sales volume would finally surpass last year’s numbers. There have been 187 homes sold so far this year, three less than what was sold by this time in 2016. The North Kohala year-to-date number is still ahead of the 36 homes sold in 2016, with 39 homes being sold this year, and the South Kohala sales volume has come close to reaching the 2016 number, with 148 homes selling this year, down slightly from the 154 homes sold last year. The number of condos sold year-to-date has continued to be a bright spot, with 166 units sold this year, up impressively from 139 units sold in 2016.
Although there was a decrease in sales volume of single family home in July 2017 over July 2016 in both North and South Kohala, only South Kohala saw a decrease in median sales price. The median sale price in South Kohala decreased from $565,000 in July 2016 to $510,000 in July of this year, while in North Kohala, the median sales price in July 2017 increased to a staggering $1,430,000 from $838,000 in July 2016. This type of a wild swing in median sales price can be expected when dealing with such low sales volumes. The condo market experienced a slight uptick in price, with the July 2017 median sales price rising to $568,000 from $529,000 in July 2016.
The year-to-date median sales price numbers were sort of a mixed bag this month, with North Kohala having the strangest number. Even with that immense increase in the monthly median sales price, North Kohala’s median year-to-date sales price dropped 19.35%, from $775,000 in 2016 to $662,000 this year. Meanwhile, South Kohala experienced a change in the other direction, with its median sales price increasing a notable 15.15% from $495,000 in 2016 to $570,000 this year, while the condo market had a similar increase, rising 15.61%, from $442,000 in 2016 to $511,000 this year.
Analysis: After a dramatic rise in the June 2017 sales volume and median sales prices, the July numbers were somewhat disappointing. What we had hoped was becoming a trend is looking more like an aberration.
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.
July 2017 Kohala Coast Market Highlights
If you enjoyed this update, you may like Waikoloa Village Market Update for Q1 2017.