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February 23rd, 2019 10:16 AM by Korby Matsen RB-21643
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 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, including the small towns of Hawi and Kapaau, and the Kohala Ranch communities farther south.
South Kohala 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 my Market Update Page.
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The number of single-family homes sold in Kohala in January 2019 decreased substantially over January 2018, with 26 homes selling in January 2018 down to 16 homes sold this year. That decrease was felt in all market segments, with the sales volume in North Kohala falling from 6 homes sold in January 2018 to 4 this year, while the volume in South Kohala fell from 20 homes to 14. The number of condos sold year over year in January in Kohala was a bright spot, increasing slightly from 22 units last year to 23 units this year.
With January being the first month of the year, the year-to-date volume is going to be equal to the monthly numbers, with 16 homes being sold so far in 2019, as opposed to 26 homes being sold by this time last year. The South Kohala volume fell from 20 homes in January 2018 to 16 homes sold this year, while in North Kohala the decrease was only by two, from 6 single-family homes sold by this time in 2018, to 4 homes this year. The number of condos sold year-to-date was the one segment with an increase in sales volume, rising from 22 units sold last year, to 23 units sold in 2019.
Along with the decreases in sales volume of single-family homes in January 2018 over January 2019 in both North and South Kohala, also came reductions in median sales prices in both regions. The median sale price in South Kohala fell from $677,250 in January 2018 to $535,000 in January of this year, while in North Kohala, the median sales price in January 2019 fell to $810,000 from $986,000 in January 2018. The condo market also experienced a disappointing price decrease, with the January 2019 median sales price falling to $510,000 from $548,000 in February 2018.
Along with the monthly median sales prices being down in all markets in January 2019, the year-to-date numbers were also down in all markets. The median year-to-date sales price in the condo market fell a modest 7.06% from $548,750 in 2018 to $510,000 this year. North Kohala experienced an even larger decrease for its median sales price, dropping 17.85% from $986,000 in 2018 to $810,000 this year, and the single-family homes in South Kohala had the largest drop, falling 21.0%, from $535,000 in 2018 to $677,250 this year.
Analysis: The sales volume of single-family homes dropped significantly on the Kohala Coast in January 2019 compared to the last six months of 2018. This is especially concerning since January is typically one of the stronger months for sales. We did not see the same drop in sales volume in the condo market, so it is possible the drop was just a monthly aberration.
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.
February 2018 Kohala Market Highlights
If you enjoyed this update, you may like Waikoloa Village Real Estate Update for Q4 2018.