Big Island Real Estate Market Update
big Island Real Estate Market
In the constantly evolving world of real estate, staying informed about current trends is crucial, whether you’re a seasoned investor, first-time buyer, or property seller. This blog post aims to provide an in-depth and comprehensive analysis of the real estate market, shedding light on varying trends across condos, lands, multi-family and residential properties. We’ll dive deep into specific locales such as North Kona, offering you a snapshot of sales volume, median prices, and other key market indicators. Our intention is to present a clear and current picture of the real estate landscape to aid you in your property decisions. Furthermore, we invite you to leverage the expert insights of the Papakea Collection real estate team. They’re here to offer additional information and guidance, turning these market insights into actionable steps towards your real estate goals. So whether you’re buying, selling, or simply interested in the pulse of the property market, stick around for some key insights. Welcome to your one-stop resource for all things real estate.
Big Island Real Estate Market Overall Look
Business Properties: With an average of 257 days on the market and a final list to sold price percentage of 71.13%, business properties seem to be more challenging to sell. With just 4 sales total and 9 months of inventory, it’s a slow market sector.
Commercial Properties: This sector is showing moderate activity, with 27 properties sold at a median price of $775,000. The properties stay on the market for about 159 days and sell at approximately 88.12% of their final list price.
Condos: The condo market is quite robust, with 625 properties sold at a median price of $575,000. The average days on market are 33, indicating a fast turnover. The final list price to sold price ratio is high at 96.76%, demonstrating strong demand.
Land: The market for land is quite active with 2,061 sales and a median price of $41,000. However, the properties are staying on the market for about 87 days and are selling at about 89.74% of the final list price.
Multi-Family Properties: The multi-family market is smaller with 20 sales at a median price of $580,000. The days on market are 49, indicating a moderate pace. These properties sell above their list price, showing a high demand.
Residential: The residential market is the most active with 2,091 properties sold at a median price of $495,000. The properties are on the market for about 57 days and sell at approximately 92.44% of their final list price.
Looking at the districts, we can see some interesting trends:
North Kona: This district stands out with the highest sales volume ($1,107,729,267) and median price ($799,000). Properties spend an average of 41 days on the market and sell at 94.18% of the final listing price.
Puna: Puna district had the highest number of sales (2,133), but the median price is lower at $85,000. The absorption rate is at a healthy 21.42%, suggesting a balanced market.
South Kohala: This district has a high median price ($897,000) and properties sell at about 92.77% of their final list price. However, they also have a higher inventory of 4 months.
Year-over-year changes in different districts indicate the market’s trend. For example, North Kona shows a significant increase in median prices (from $1,000,000 to $1,245,000). In contrast, Puna shows an increase in the number of units sold but a decrease in median prices, suggesting a potential increase in affordability.
For Condo and Land sales, North Kona and South Kohala stand out for high median prices and dollar volumes, indicating a concentration of high-end properties in these areas.
In conclusion, the real estate market on the Big Island of Hawaii shows varied dynamics across different property types and districts. Residential and land sales are particularly active, with condos also showing robust performance. Districts like North Kona and South Kohala are showing significant high-end activity, especially for condos and land sales. Overall, despite some areas of slower performance, many segments of the market show healthy activity and strong demand.
Big Island Real Estate Market: Condos
The brisk pace of sales with an average of 33 days on market indicates a high level of demand for condos in this market. A median price of $575,000 suggests a middle market positioning, which is accessible to a broad range of buyers. The final list price to sold price ratio being 96.76% means buyers are willing to pay close to the asking price, another strong indicator of the health of the market. This shows that sellers have a good understanding of what the market will bear, and buyers are eager to close at these prices.
The active listings of 98 units are rather low compared to the rate of sale, with only 1.88 months of inventory, which could suggest that demand is outstripping supply. This scenario often leads to price increases as buyers compete for a limited number of available properties. This could present an opportunity for developers or for owners who are considering selling.
Land: The volume of sales indicates that there is significant activity in the land market, with 2,061 properties changing hands. The median price of $41,000 suggests these are likely raw land properties, which buyers may be purchasing for future development or as an investment.
The higher average days on market, at 87 days, is not surprising for land sales, as these often take longer than residential properties due to factors such as planning, permits, or buyer’s intent for long-term investment. The lower final list price to sold price ratio of 89.74% could indicate that buyers have more room to negotiate on land purchases, or that sellers are initially pricing their properties optimistically.
With 1,108 active listings and 6.45 months of inventory, there is a larger supply of land compared to condos. This could create more of a buyer’s market, where those looking to purchase land can afford to be choosy, negotiate harder on price, or wait for the perfect property to come along.
Overall, while the condo market is highly competitive right now, the land market offers more opportunities for buyers to negotiate and find the right fit for their long-term goals.
Big Island Real Estate Market: Land
The land market is described as quite active, with 2,061 sales. This high volume of transactions suggests a healthy interest from buyers, which could be driven by various factors such as favorable economic conditions, increasing population or positive future growth expectations in the area.
The median price of land sales is $41,000. This is the midpoint price in the range of land sales, meaning half the properties sold for less and half sold for more than this amount. This figure could reflect the availability of affordable land options, potentially making it accessible to a larger pool of potential buyers. It could also suggest that the land parcels being sold are relatively small, are in less-developed or rural areas, or lack prepared infrastructure (roads, utilities, etc.), which tend to lower the price.
The average time a land property stays on the market is 87 days. This is relatively long compared to faster-moving property types such as residential or commercial real estate, but it’s typical for land sales. There could be several reasons for this, including: land buyers often have specific requirements (such as size, zoning, location, etc.), the due diligence process for land can be more complex involving surveys, soil tests, checking for easements and rights of way, which can extend the sale timeline.
The final list price to sold price ratio is approximately 89.74%. This means that, on average, land parcels are selling for about 89.74% of the list price. This could imply a few things:
– Sellers might be setting their initial list price high, which gives them some room to negotiate.
– Buyers are willing and able to negotiate lower prices. This suggests that although there is a high volume of transactions, it might still be a buyer’s market.
– Land is a unique commodity with a value that can be harder to estimate than residential property. Hence, the final sale price can often diverge more from the original listing price.
In conclusion, while there’s a high volume of transactions in the land market, the relatively low median price, longer time on the market, and lower sale-to-list price ratio suggest a market where buyers have more negotiating power and can afford to take their time to find a suitable property.
papakeacollection
July 23, 2024
Big Island Hawaii Real Estate Market: Residential Housing
The Residential section of the real estate market is particularly dynamic, with a total of 2,091 properties exchanged. This volume of sales denotes a high level of activity and interest, signifying a robust and healthy market.
The median price, a figure that represents the middle point of property prices in this category, stands at $495,000. The advantage of the median price over the average price is that it isn’t skewed by extremely high or low values. This number provides a more accurate reflection of the typical residential property transaction, making it a valuable metric for both buyers and sellers.
Another critical metric is the average number of days properties remain on the market – in this case, around 57 days. This is a relatively moderate pace, suggesting a balanced market where neither buyers nor sellers have extreme advantage.
Lastly, properties in this category are selling for approximately 92.44% of their final list price. This reveals that there is some room for negotiation in the residential market, but not a significant amount. Buyers can expect to purchase below the list price, but sellers are still getting a significant proportion of their asking price.
North Kona
North Kona: This district is noted for having the highest sales volume ($1,107,729,267) and median price ($799,000). High sales volume indicates a high number of transactions, demonstrating significant demand in this area. The high median price suggests that properties in this district are generally more upscale or in desirable locations, attracting buyers who can afford higher prices.
Properties in North Kona spend an average of 41 days on the market, which is faster than the average in many markets, indicating a strong demand and/or efficient sales processes. They sell at 94.18% of the final listing price, suggesting that sellers are pricing their properties accurately and there’s a healthy balance between buyer’s and seller’s market dynamics.
Multi-Family Properties: This market segment is smaller with only 20 sales at a median price of $580,000. Given the lower number of sales, this indicates that multi-family properties may be less common or less in demand in the area under review.
These properties stay on the market for an average of 49 days, a moderate pace, suggesting a steady interest from buyers. Interestingly, these properties sell above their list price, indicating high demand or perhaps underpricing by sellers. It’s quite unusual for properties to sell for more than their listed price, suggesting a competitive market where multiple offers may be driving up the final sales price.
Residential: The residential market is the most active with 2,091 properties sold at a median price of $495,000. This high volume of sales indicates that the residential sector is a significant part of the real estate market in this region, and that demand for residential properties is robust.
Properties are on the market for an average of 57 days, a slightly longer period than the previous categories, which might indicate a larger inventory of homes or more discerning buyers. They sell at approximately 92.44% of their final list price, which could imply some room for negotiation on price, reflecting a balanced market where neither buyers nor sellers have a significant advantage.
In sum, the North Kona district appears to be a high-end market with quick sales and limited negotiation on price, while the multi-family market is smaller but potentially competitive given the above-list price sales. The residential market is the most active, with moderate time on market and room for price negotiation.
The Market is Always Changing
The current real estate market is quite active across all sectors. The condo market shows fast turnover rates and strong demand, with properties selling close to their list price. Similarly, the land market is also active, though properties stay longer on the market and tend to sell below the listing price, offering potential opportunities for price negotiation.
In terms of location, North Kona stands out as a vibrant market with high sales volume and median price. Despite its relatively upscale pricing, properties in this district are selling relatively quickly, illustrating strong demand.
Different property types offer unique dynamics. Multi-family properties, while a smaller market, appear to be in high demand, selling above their listing prices. The residential market is the most vibrant, with a significant volume of transactions, although properties stay on the market slightly longer, implying room for negotiation.
Overall, the market shows robust activity, with strong demand across different property types and regions. However, the trends vary by property type and location, indicating the importance of targeted strategies for buyers and sellers.
At the Papakea Collection real estate team, we’re dedicated to helping both buyers and sellers navigate these nuances. With our deep knowledge of local market trends, we can provide tailored advice to help you make the best possible decision. Whether you’re considering a condo, a plot of land, a multi-family property, or a residential home, we’re here to assist with data-driven insights and expert guidance. For more information or help with your real estate decisions, don’t hesitate to reach out to us.
About the Author
James T. Morrison, R(S)
James T. Morrison is a Realtor with KW Big Island, and part of the Papakea Collection Sales Team. You can email him directly at:
JTM@Jamesmorrisonhawaii.com or call or text him directly at (808) 339-8249
Licesnse #79190 Realtor
