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April 1st, 2018 12:34 PM by Korby Matsen
The Kohala Coast is a beautiful area 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 my Market Update Page.
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The number of single family homes sold in Kohala in February 2018 rose slightly over February 2017, with 17 homes selling in February 2017 up to 20 homes this year. That increase was felt in all market segments, with the sales volume in North Kohala up ticking from 5 homes sold to 6 and the volume in South Kohala rising from 12 homes to 14. The number of condos sold year over year in February also saw a slight increase, rising from 19 units last year to 22 units this year.
With February only being the second month of the year, the overall year-to-date volume is not yet a significant number, but still an increase, with 46 homes being sold so far in 2018, as opposed to 40 homes being sold by this time last year. As with the February monthly number, this overall increase happened in all market segments. The South Kohala volume rose from 29 homes in February 2017 to 34 homes sold this year, while in North Kohala the increase was only by one, from 11 homes sold by this time in 2017, to 12 homes this year. The number of condos sold year-to-date also was up, rising from 40 units sold last year, to 44 units sold in 2018.
Although there were increases in sales volume of single family homes in February 2018 over February 2017 in both North and South Kohala, the change in median sales price did not move in the same direction in both regions. The median sale price in South Kohala rose from $606,500 in February 2017 to $681,000 in February of this year, while in North Kohala, the median sales price in February 2018 fell to $607,000 from $825,000 in February 2017. The condo market in Kohala also experienced a disappointing price decrease, with the February 2018 median sales price falling to $422,500 from $610,000 in February 2017. This could be explained by the sheer number of lower priced condos being sold, as opposed to prices dropping.
Although the monthly median sales prices were mixed between markets in February 2018, the year-to-date numbers were positive all the way around. The median year-to-date sales price in the condo market rose a modest 7.46% from $462,500 in 2017 to $497,000 this year. North Kohala experienced a similar increase for its median sales price, increasing 7.43% from $565,000 in 2017 to $607,000 this year, and the single-family homes in South Kohala had an even larger increase, rising 12.88%, from $600,000 in 2017 to $677,000 this year.
Analysis: With the monthly and year-to-date sales volumes both increasing in February over last year, the year-to-date median sales price rising in all segments, coupled with the continuing drop in inventory levels, the Kohala Coast market is firmly in the grasps of a balanced market (5 to 6 months of inventory). If this trend continues, we will be in Seller’s market in the not too distant future.
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. If you currently own a vacation home or a vacation rental, find out how you can save thousands in management fees with our Vacation Rental Management Program. Mahalo.
February 2018 Kohala Market Highlights
If you enjoyed this update, you may like Waikoloa Village Real Estate Update for Q4 2017.