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February 13th, 2017 12:26 PM by Korby Matsen RB-21643
The Kohala Coast is located on the west coast of the Big Island of Hawaii. It is called the Big Island 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 Kohala in December 2016 decreased considerablyfrom December 2015, with 34 homes selling in December 2015 down to just 19 homes this year. This drop in sales volume happened in both parts of Kohala, but more noticeably in South Kohala, where the volume decreased from 28 homes to 15, while North Kohala had a minor drop from 6 homes sold to 4. The decrease in sales volume also affected the condo market, with the number of units sold decreasing year over year in December from 28 to 23 units.
This drop in the number of single family homes sold in December from year to year also spilled over into the year-to-date numbers, with sales volume decreasing in 2016 over 2015, from 325 homes being sold last year and 306 homes sold this year. This overall decrease did not happen in both parts of Kohala however, as the number of single family homes in North Kohala actually increased from 45 homes sold last year to 57 this year. Yet, this increase was offset by the sales in South Kohala, with the number of single family homes sold dropping from 280 homes last year to 249 homes sold this year. The bright spot was found in the condo market, with year-to-date sales volume rising from 211 units sold in 2015, to an encouraging 251 units sold this year.
Even though the volume of single family homes sold in December 2016 from December 2015 decreased in both parts of Kohala, the change in median sales price was mixed between North and South Kohala. The median sale price in South Kohala increased a healthy $57,000, from $463,000 in December 2015 to $520,000 in December of this year, while in North Kohala the median sales price in December 2016 decreased a whopping $336,500 to $406,000 from $742,500 in December 2015. But wide swings in sales price can be expected when dealing with low sales volume in a rural area. Even with its promising increase in sales volume, the condo market also experienced a dramatic price drop, with the December 2016 median sales price decreasing to $322,500 from $449,000 in December 2015.
The 2016 year-to-date median sales price numbers were mostly positive in Kohala, with the single family homes in North Kohala having the largest increase, growing 12.7% from $630,000 in 2015 to $710,000 this year. The single family homes in South Kohala had a smaller increase of 3.09%, rising from $485,000 in 2015 to $500,000 this year. Meanwhile, the condo market year-to-date number was unable to stay positive, slipping a slight 1.75% from $457,000 in 2015 to $449,000 this year.
Analysis: With the monthly sales volume of single family homes in December decreasing in all areas and the year-to-date number decreasing overall, the Kohala real estate market continues to muddle along. The bright spot of the condo market, which saw encouraging increases in the monthly median sales price and year-to-date sales volume, was offset by a decrease in year-to-date sales price. The December and yearly numbers continue the “muddling along” trend we have seen throughout 2016, with little to no increase in sales volume or prices.
If you are thinking of buying or selling a home on the Kohala Coast, contact me today. I will produce a customized market report for the neighborhood or area you are interested in buying or selling in. You can also instantly find out what your Kohala Coast home is worth by visiting my Home Valuation Page.
If you found this Market Update informative, see more updates from other areas on the Kohala Coast on my Market Update Page. Mahalo.
December 2016 Market Highlights