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January 26th, 2019 11:19 AM by Korby Matsen RB-21643
The Kohala Coast is a magnificent area located on the west coast of the Big Island of Hawaii. The Big Island received that name to differentiate 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, that includes the two small towns of Hawi and Kapa’au, as well as the Kohala Ranch communities at the southern end.
South Kohala, which begins just south of Kohala Ranch, covers the major, world class resorts of Mauna Kea, Mauna Lani and Waikoloa Beach Resorts, 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 2018 decreased slightly from December 2017, with 30 homes selling in December 2017 down to 27 homes sold this year. This drop in sales volume only happened in North Kohala, with South Kohala remaining the same at 21 homes sold, while North Kohala had a minor decrease from 9 homes sold to 6. The condo market experienced the opposite, with the number of units sold increasing substantially year over year in December from 16 to 26 units.
This drop in the number of single-family homes sold in December from year to year did negatively affect the year-to-date numbers, with sales volume increasing in 2018 over 2017, from 326 homes sold last year to 341 homes sold this year. This overall increase did not happen in both parts of Kohala however, as the number of single-family homes in North Kohala decreased by one from 67 homes sold last year to 66 this year. Yet, this decrease was offset by the sales in South Kohala, with the number of single-family homes sold rising from 259 homes last year to 275 homes sold this year. The condo market continued its strong growth, with year-to-date sales volume rising from 275 units sold in 2017, to an impressive 303 units sold this year.
Even though the volume of single-family homes sold in December 2018 decreased in Kohala from December 2017, the change in median sales price was up in all regionsand markets. The median sale price in South Kohala increased a healthy $42,500, from $579,000 in December 2017 to $621,000 in December of this year, while in North Kohala the median sales price in December 2018 increased a staggering $362,500 to $731,000 from $579,000 in December 2017. But wide swings in sales price happen often in North Kohala, due to the low sales volume in this rural area. Along with its impressive increase in sales volume, the condo market also experienced a dramatic price increase, with the December 2018 median sales price increasing to $694,500 from $554,500 in December 2017.
The 2018 year-to-date median sales price numbers were all positive in Kohala, with the single-family homes in North Kohala having the largest increase, rising an impressive 19.45% from $640,000 in 2017 to $764,000 this year. The single-family homes in South Kohala had a more modest increase of 5.66%, rising from $565,000 in 2017 to $597,000 this year. Meanwhile, the condo market year-to-date number was also a bright spot, rising a robust 10.66% from $488,000 in 2017 to $540,000 this year.
Analysis: Even though 2018 was considered a great year in real estate on the Kohala Coast, and the 2018 yearly single-family home sales volume was up over 2017, the year over year monthly sales volume has been down every month since September. This was also the case in the condo market, up until December. It remains to be seen whether this is an aberration, or a trend.
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. Mahalo.
December 2018 Kohala Coast Market Highlights
If you enjoyed this update, you might enjoy Mauna Lani Resort Update for Q4 2018.