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May 6th, 2018 3:45 PM by Korby Matsen RB-21643
The Kohala Coast is located on the west coast of the Big Island of Hawaii. The Big Island received this 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 March 2018 in Kohala decreased slightly over March 2017, with 35 homes selling in March this year, down from 38 homes selling in March 2017. The decline in sales volume only occurred in South Kohala though, with 26 homes being sold this March down from 34 homes sold in March 2017, while the volume in North Kohala increased from 4 homes in March 2017 to 9 homes this year. The number of condos sold year over year in March had a slight increase this year, increasing to 33 units this year from 27 units last March.
Although the overall monthly number decreased, the year to date volume saw a slight increase in 2018, with 82 homes being sold this year, as opposed to 78 homes being sold by this time in 2017. This overall increase happened despite the sales volume decrease in South Kohala, with the number of single-family homes in North Kohala increasing to 22 homes sold this year from 15 homes sold last year. South Kohala decrease was a small one, dropping from 63 homes last year to 60 homes sold this year. The number of condos sold year-to-date in Kohala also saw a considerable increase, rising from 67 units sold last year, to 77 units sold in 2018.
With the sales volume of single-family homes sold in March 2018 being a mixture of up and down numbers compared to March 2017 in Kohala, the change in median sales price from segment to segment also reflected that. The median sale price in South Kohala rose from $570,000 in March 2017 to $654,000 in March of this year, while in North Kohala, the median sales price in May 2018 increased an astounding $358,000, from $495,000 in March 2017 to $853,000 this year. As I have stated in the past, this type of dramatic change in median sales price is quite common when dealing with such a low sales volume. The condo market was the only segment to see a decrease, with the March 2018 median sales price dropping to $495,000 from $550,000 in March 2017.
The year-to-date median sales price changes in the different areas and sectors mirror the changes in the monthly March 2018 numbers. The only area to see a decrease was the condo segment, as it did in the monthly number. The median year-to-date sales price in the condo market fell a slight 2.94% from $510,000 in 2017 to $495,000 this year. Meanwhile, North Kohala saw a huge change in the other direction for its year-to-date median sales price, increasing an extraordinary 37.35% from $565,000 in 2017 to $776,000 this year; again, this had a lot more to do with the low number of sales in that area than price increases. The single-family homes in South Kohala also enjoyed a healthy increase, moving upward 11.41%, from $587,000 in 2017 to $654,000 this year.
Analysis: With five to six months’ supply of inventory being considered a balanced market, the five months of inventory in the condo market and single-family home market in both North and South Kohala, confirms that every segment of the market is firmly in a Balanced Market.
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 read more Market Updates from the different areas of the Kohala Coast, visit my Market Update Page. Mahalo.
March 2018 Kohala Market Highlights
If you enjoyed this update, you may like Waikoloa Beach Resort Market Update for Q1 2018.