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June 18th, 2017 4:31 PM by Korby Matsen RB-21643
The Kohala Coast is a spectacular region 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 May 2017 in Kohala increased slightly over May 2016, with 32 homes selling in May of this year, up from 29 homes selling in May 2016. That modest increase in sales volume happened in both South and North Kohala, with North Kohala up by two sales (7 homes sold in May 2016 and 9 homes this May) and South Kohala rising by just one sale (from 22 homes sold in May 2016 to 23 homes this May). The number of condos sold in May followed the same pattern, increasing from 22 units last year to 23 units this year.
Even though the monthly number increased, the year to date sales volume is still down in 2017 with 130 homes being sold this year, as opposed to 146 homes being sold by this time in 2016. This overall decrease did not happen in both parts of Kohala, with the number of single family homes sold in North Kohala remaining the same at 27 homes sold, while the South Kohala sales volume dropped from 119 homes last year to 103 homes sold this year. The number of condos sold year-to-date was a bright spot though, rising from 108 units sold last year, to 115 units sold in 2017.
Along with the sales volume of single family home in May 2017 rising over May 2016 in both North Kohala and South Kohala, the change in median sales price also increased in both regions. The median sale price in South Kohala rose from $483,000 in May 2016 to $540,000 in May of this year, while in North Kohala, the median sales price in May 2017 rose to $545,000 from $426,000 in May 2016. The condo market also experienced a healthy price increase, with the May 2017 median sales price rising to $575,000 from $500,000 in June 2016.
With such noteworthy rises in the monthly median sales price in most areas and sector in May 2016, you might expect the same with the year-to-date numbers; well you would be partly right. The only sector to see a decrease was in North Kohala, and quite a decrease it was. The median year-to-date sales price in North Kohala dropped 25%, from $800,000 in 2016 to $600,000 this year; this kind of dramatic change can sometimes be expected when you have such a low sales volume. Meanwhile, South Kohala experienced a change in the other direction, with its median sales price increasing a notable 17.81% from $483,000 in 2016 to $569,000 this year, while the condo market had a more modest increase, rising 12.44%, from $442,000 in 2016 to $497,000 this year.
Analysis: Although the sales volume of single family homes in 2017 continues to lag in comparison to 2016, price appreciation continues to rise. With the amount of available inventory, the rise in price seems to be counter normal supply and demand formulas. So for the Buyer, there is still plenty of homes to choose from, and for the Seller, prices keep rising. I guess we have the best of both worlds.
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 learn more about my Vacation Rental Management Program, visit my Vacation Rental Page. Mahalo.
May 2017 Market Highlights
If you enjoyed this update, you may like North Kohala Market Update for Q1 2017.