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July 21st, 2019 2:54 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 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, Kapa’au, and 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 June 2019 in Kohala decreased considerably over the impressive sales volume of June 2018, with 22 homes selling in June of this year, down from 38 homes selling in June 2018. That large decrease in sales volume was felt in both parts of Kohala, but more so in South Kohala. North Kohala saw 7 homes sold in June 2019, down slightly from the 9 homes sold in June 2018, but South Kohala fell substantially from 29 homes sold in June 2018 to 17 homes this June. The number of condos sold in June 2019 also fell year over year, with 24 units being sold this June, down slightly from 28 units in June 2018.
This substantial drop in sales volume for June helped to contribute to the drop in the year-to-date sales volume in 2019, which is well off the 2018 numbers. There have been 157 single-family homes sold so far this year, a big drop from the 183 homes that sold by this time in 2018. Both parts of Kohala have felt this year-to-date volume decrease, with North Kohala seeing 31 homes sold in 2019, down from the 42 homes sold in 2018. In South Kohala the sales volume has decreased by 15 homes, with 126 homes selling this year, down from the 141 homes sold last year, and the number of condos sold year-to-date also saw a small decrease, with 169 units selling this year, down from 171 units sold in 2018.
Along with the drop in sales volume of single-family homes in June 2019 over June 2018 in Kohala, the fall in median sales price also happened in most markets. The median sale price in the South Kohala and condo markets both fell, with South Kohala falling from $557,000 in June 2018 to $540,000 in June of this year, while the condo market fell from $650,000 in June 2018 to $478,750 in June of this year. The only market to see an increase in the median sales price was North Kohala, where the median sales price in June 2019 increased to $691,945 from $657,750 in June 2018.
As with the decrease in the monthly median sales price for homes in Kohala, all the markets year-to-date median sales price numbers reflected their monthly numbers. The median year-to-date sales price in North Kohala saw the only increase, rising 24%, from $825,000 in 2018 to $1,023,000 this year; this kind of dramatic change can sometimes be expected when you have an area with such a low sales volume. Meanwhile, South Kohala experienced a less dramatic change, with its median sales price decreasing a mere 1.17% from $600,000 in 2018 to $593,000 this year, while the condo market had a similar decrease, falling 1.71%, from $525,000 in 2018 to $516,000 this year.
Analysis: Although the monthly sales volume in Kohala as been higher in some months over their 2018 counterparts, the overall year-to-date number is down quite a bit from the 2018 numbers. The same could be said for the median sales price numbers, as they were mixed from month-to-month, but down overall for the year. This may have been caused by a combination of 2017 being a really good year and a nationwide slowdown in the real estate market. The question is, how long will the slowdown continue.
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.
June 2019 Kohala Coast Real Estate Market Highlights
If you enjoyed this update, you may like the Mauna Lani Resort Market Update for Q2 2019.