April 21st, 2017 3:04 PM by Korby Matsen
The Kohala Coast is 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. Kohala 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 March 2017 in Kohala decreased slightly over March 2016, with 37 homes selling in March this year, down from 38 homes selling in March 2016. The sales volume in South Kohala remained the same as last year (33 homes sold) while the volume in North Kohala decreased by one (5 homes last year, 4 homes this year). This continued stagnation of sales volume is an all too familiar pattern in Kohala. The number of condos sold year over year in March also had a slight decrease, dropping from 26 units last year to 23 units this year.
Although the monthly number stagnated, the year to date volume saw an increase in 2017, with 77 homes being sold this year, as opposed to 72 homes being sold by this time in 2016. This overall increase mainly due to the volume increase in South Kohala, as the number of single family homes in North Kohala remained the same (15 homes both years). South Kohala increase was sizable, rising from 62 homes last year to 72 homes sold this year. The number of condos sold year-to-date also saw a considerable increase, rising from 52 units sold last year, to 63 units sold in 2017.
With the volume of single family homes sold in March 2017 from March 2016 remaining virtually unchanged in both parts of Kohala, the mixed change in median sales price from each region was somewhat surprising. The median sale price in South Kohala rose from $459,000 in March 2016 to $575,000 in March of this year, while in North Kohala, the median sales price in May 2016 decreased a substantial $390,000, from $885,000 in March 2016 to $495,000 this year. This type of dramatic change in median price is quite common when dealing with such a low sales volume. The condo market also experienced a generous price increase, with the March 2017 median sales price rising to $530,000 from $435,000 in March 2016.
The year-to-date median sales price changes in the different areas and sectors mirrorthe changes in the monthly March 2017 numbers. The only area to see a decrease was North Kohala, which was to be expected with the dramatic decrease in the monthly number. The median year-to-date sales price in the condo market rose a solid 16.38% from $412,450 in 2016 to $480,000 this year. Meanwhile, North Kohala saw a huge change in the other direction for its median sales price, decreasing an extraordinary 35.80% from $880,000 in 2016 to $565,000 this year; again, this had a lot to do with the low number of sales in that area. The single family homes in South Kohala also enjoyed a hefty increase, moving upward 27.03%, from $462,500 in 2016 to $587,000 this year.
Analysis: Other than the big drop in median sales price in North Kohala, which was more than an aberration then a trend, the median sales price continues its upward trend in all other areas. Although the sales volume is not increasing, it is staying steady, which is not a bad thing. When you consider that six months supply of inventory is considered a market in equilibrium, the twelve months of inventory in the condo market and homes in North Kohala, and the six months supply of homes in South Kohala, this can still be considered 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.
March 2017 Market Highlights
If you enjoyed this update, you may like Waikoloa Beach Resort Market Update.
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