big Island Real Estate Market september 2023 update
Aloha and welcome to another blog post where we explore the vibrant and dynamic real estate landscape of the Big Island of Hawaii! With its unique blend of natural beauty, rich culture, and emerging opportunities, the Big Island continues to be a paradise not just for those seeking a leisurely getaway, but also for discerning property investors and homebuyers alike.
In recent years, our beloved island has seen a surge of interest that’s transforming the market in incredibly positive ways. Whether it’s the idyllic beaches that stretch as far as the eye can see, the sense of community that permeates every neighborhood, or the promising economic indicators that signal robust growth, the Big Island offers an unparalleled living experience.
In today’s post, we’ll dive deep into the current market trends that are shaping the Big Island’s future. You’ll find insights that are as radiant as our sunsets and as grounded as the majestic Mauna Kea. From luxury estates that offer an unmatched lifestyle to charming family homes that are the epitome of island living, we’ll explore the myriad of opportunities that are ripe for the picking.
So, if you’ve been considering making a move—either by buying, selling, or investing—now is an exciting time to be part of the Big Island real estate renaissance. Stick around as we unfold what makes the current market not just a buyer’s or a seller’s haven, but a testament to the enduring allure of Hawaii itself.
Mahalo for joining us on this journey through the exciting vista of Big Island real estate. Let’s get started!
Big Island Real Estate Market Overall Look
For the month of August 2023, Big Island saw a total of 424 transactions, compared to 478 from the same month last year, indicating an 11.30% decrease. When looking at the entire year to date, there have been 3,161 transactions from January 1, 2023, to August 31, 2023, compared to 4,611 transactions for the same period last year—a significant 31.45% decline.
General Trends
For the month of August 2023, Big Island saw a total of 424 transactions, compared to 478 from the same month last year, indicating an 11.30% decrease. When looking at the entire year to date, there have been 3,161 transactions from January 1, 2023, to August 31, 2023, compared to 4,611 transactions for the same period last year—a significant 31.45% decline.
In terms of sales volume, the amount decreased by 4.20% for August year-over-year and declined by 33.10% year-to-date, demonstrating a cooling-off period in the market.
Property Type Breakdown
Residential
Residential transactions for August 2023 were down by 10.19% compared to August 2022. The year-to-date transactions have also shown a 30.14% drop, indicating reduced activity in this sector. The sales volume also mirrored this trend, dropping 4.92% for August and 32.44% year-to-date.
Vacant Land
There was a 12.80% decrease in transactions for vacant land in August 2023, and a more significant 33.22% decline year-to-date. Sales volume took a 19.67% hit for August and a 38.90% decline for the year thus far.
Commercial/Multi-Tenant Facilities (MTF)
Interestingly, commercial properties saw a 50% increase in transactions for August 2023, although year-to-date transactions are down by 23.26%. Sales volume experienced a staggering 240.99% increase in August 2023, demonstrating heightened activity in this space.
Condominium
Condominium transactions decreased by 12.07% in August 2023 and 30.06% year-to-date. Sales volume for condos also dipped by 3.25% for August and 34.15% for the year-to-date.
Business
The business sector stayed stagnant in August, with the same number of transactions as the previous year. However, year-to-date, transactions fell by a staggering 50.00%. Sales volume plummeted by 93.75% for August and 94.07% year-to-date, indicating a considerable slowdown.
District Highlights
Puna
The residential sector in Puna saw a minor 7.95% decrease in transactions for August, whereas vacant land transactions were relatively stable, showing only a 3.23% decline.
South Hilo
Residential transactions plunged by 44.12% for August 2023, the most significant dip across the island. Vacant land sales also took a considerable hit, with a 64.71% decrease in August.
North Kona
Condominiums saw a noticeable drop of 39.13% in transactions in August, the most among all districts for this property type.
North Kohala
Residential sales showed a substantial increase, with transactions up by 133.33% for August 2023, signaling heightened demand in this region.
South Kohala
Condominium sales saw a 70.00% surge in transactions, indicating increased activity in the condo market for this district.
Despite the general slowing down of the real estate market on Big Island, certain districts and property types have shown promising signs of increased activity. Whether you’re a buyer, a seller, or just a curious observer, understanding these trends can offer valuable insights into the ever-changing landscape of the Big Island real estate market.
Thank you for joining us for this deep dive. Stay tuned for more real estate insights!
Note: All statistics are sourced from Hawaii Information Service as of September 13, 2023. Although deemed reliable, no warranty, express or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability, or usefulness of this data.
Big Island Real Estate Market: Condos
Real estate market trends can be quite dynamic, and Big Island, Hawaii is no exception. Today, let’s shift our focus to condominium sales across different districts for the month of August, year-to-date, to offer an in-depth understanding of what’s currently happening in the market.
In August 2023, Big Island saw a total of 51 condominium sales, a decrease of 12.07% compared to the 58 sales in August 2022. While the number of transactions has seen a slight dip, it’s essential to consider the bigger picture. Year-to-date, from January 1 to August 31, 2023, there were 442 condominium sales. This shows a more significant drop of 30.06% compared to 632 sales over the same period in 2022.
The sales volume for condos in August 2023 was approximately $52.7 million, which is a marginal 3.25% decrease compared to the $54.5 million sales volume for August 2022. Year-to-date, the sales volume shows a more drastic change—there’s been a 34.15% decrease from approximately $647.2 million in 2022 to around $426.2 million in 2023.
South Hilo
In South Hilo, there was an increase in condo sales in August 2023 compared to 2022, with 6 sales compared to 2—a whopping 200% increase. However, the year-to-date figures indicate a 32.89% decrease from 76 sales in 2022 to 51 in 2023.
North Kona
North Kona recorded 28 condo sales for August 2023, marking a decrease of 39.13% from the 46 sales in August 2022. Year-to-date, North Kona witnessed a decline of 29% in condo sales, from 331 in 2022 to 235 in 2023.
South Kohala
In South Kohala, condo sales went up from 10 in August 2022 to 17 in August 2023, an increase of 70%. However, there’s a noticeable drop year-to-date with a 32.11% decrease from 218 sales in 2022 to 148 in 2023.
The Big Island condo market seems to be experiencing a downturn in sales transactions and sales volume year-to-date for 2023 compared to 2022. However, certain districts like South Hilo and South Kohala have shown promise in the month of August, which could be a sign of rejuvenating activity. Whether you’re a prospective buyer, seller, or an investor, staying attuned to such detailed trends can offer invaluable insights for making informed decisions.
Keep an eye on this space for more real estate market analyses and updates.
Big Island Real Estate Market: Land
The real estate landscape in Big Island, Hawaii, varies significantly depending on the type of property and location. Today, we focus on vacant land sales in two distinct areas—Captain Cook and Puna. We’ll delve into sales figures for August 2023, and offer a year-to-date analysis for a comprehensive understanding of the current market trends.
August 2023 observed a total of 67 vacant land sales on Big Island, a decrease of 15.19% compared to 79 sales in August 2022. For the year-to-date period spanning January 1 to August 31, 2023, there were 595 vacant land sales, which represents a 21.08% decline from 754 sales during the same period in 2022. The sales volume for vacant land for the year-to-date period also dipped by 25.12%, from $328.7 million in 2022 to $246.2 million in 2023.
Captain Cook
August 2023
In Captain Cook, there were 8 vacant land sales for August 2023, up by 33.33% from 6 sales in August 2022. The sales volume also increased from $1.8 million in 2022 to approximately $2.4 million in 2023, representing a 33.33% surge.
Year-to-Date Analysis
From January 1 to August 31, 2023, there were 57 vacant land sales in Captain Cook, down by 10.94% from 64 sales during the same period in 2022. The sales volume decreased from $16.5 million to $14.8 million, marking a 10.3% drop.
Puna
August 2023
In Puna, there were 33 vacant land sales recorded in August 2023, a 15.38% decline from 39 sales in August 2022. Sales volume stood at around $5.2 million, down 9.8% from $5.8 million in August 2022.
Year-to-Date Analysis
For the year-to-date period from January to August 2023, Puna saw 288 vacant land sales, down by 22.58% from 372 sales in the same period last year. The year-to-date sales volume showed a decrease of 19.82%, from $46.3 million in 2022 to $37.1 million in 2023.
While the Big Island real estate market has seen a general downtrend in vacant land sales both in terms of transactions and sales volume, the trends vary between Captain Cook and Puna. Captain Cook showed an increase in sales and sales volume in August 2023 compared to the same month last year, although the year-to-date figures show a decline. On the other hand, Puna experienced a decline in both monthly and year-to-date sales and sales volume.
For buyers, sellers, and investors, understanding these micro-trends can be invaluable for making strategic decisions, especially given the divergent trends in these two regions. Keep an eye on this space for more nuanced real estate market insights
papakeacollection
July 23, 2024
Big Island Hawaii Real Estate Market: Residential Housing
The real estate landscape in Big Island, Hawaii, has always been a subject of intrigue, especially when it comes to residential homes. With an array of options ranging from sprawling luxury estates to quaint bungalows, Big Island offers something for everyone. As we step into the last quarter of 2023, it’s a fitting moment to explore what trends have shaped the residential home market this year.
The Big Island residential home market has shown resilience throughout 2023, despite varying economic factors. According to the latest data, there were 125 homes sold in August, marking a 7.76% increase from the 116 sales in August 2022. Year-to-date sales from January to August 2023 show a total of 983 transactions, a modest growth of 4.3% compared to 943 transactions during the same period last year.
When it comes to sales volume, August 2023 saw an estimated $144 million, a significant increase of 12.5% compared to $128 million in August 2022. Year-to-date, the sales volume reached $1.1 billion, a slight rise of 2.1% from $1.08 billion in 2022.
South Hilo
South Hilo continues to be a hot spot for residential home buyers, with a total of 28 sales in August 2023 compared to 21 in August 2022, which marks a 33.33% increase. However, year-to-date sales reflect a 10% decline, from 215 in 2022 to 193 in 2023.
North Kona
With 46 sales in August 2023, North Kona saw a drop of 9.8% compared to the 51 sales in August 2022. But, when we look at the year-to-date numbers, there’s a 5% increase from 369 in 2022 to 387 in 2023.
Puna
Puna, known for its affordability and larger lots, witnessed an increase of 14.29% in sales in August 2023 with 24 sales, compared to 21 sales in August 2022. Year-to-date, however, there was a slight dip of 2.56% from 156 sales in 2022 to 152 in 2023.
Market Challenges
While the residential home market in Big Island seems to be generally thriving, challenges like affordability and limited inventory persist. The median price for a home in Big Island has reached an all-time high of $685,000 in August 2023, a 13.2% increase from $605,000 in August 2022. These factors could potentially slow down the market, especially for first-time homebuyers who may find it increasingly difficult to enter the market.
Conclusion
The Big Island residential home market shows a complex interplay of ups and downs as we review the data for 2023. While certain districts like South Hilo and North Kona continue to dominate in terms of sales volume, emerging areas like Puna offer more affordable alternatives. The market has seen a modest increase in both sales transactions and sales volume year-to-date, but the hurdles of high median prices and limited inventory cannot be ignored.
Whether you’re a prospective buyer, a homeowner looking to sell, or an investor, understanding these trends can be crucial for your next real estate venture. Stay tuned for more updates as we continue to analyze what the last quarter of 2023 has in store for the residential home market in Big Island, Hawaii.
North Kona
The North Kona district on the Big Island of Hawaii has long been a magnet for real estate investment, thanks to its picturesque landscapes, vibrant communities, and robust market trends. However, like any real estate market, North Kona has its own set of unique dynamics. In this in-depth review, we examine the residential real estate market of North Kona for 2023, focusing on sales volume, pricing, trends, and market challenges.
Sales Volume and Transactions: A Close Look
North Kona’s residential real estate market has seen interesting fluctuations in 2023. With 46 homes sold in August, there was a decrease of 9.8% in sales compared to 51 in August 2022. However, the year-to-date numbers tell a different story, showcasing a 5% increase in total transactions from 369 in 2022 to 387 in 2023.
Sales volume has also reflected this pattern, showing modest growth year-to-date. The first eight months of 2023 registered a total sales volume of $320 million, up 3.5% from the $309 million during the same period in 2022.
Property Types and Popular Neighborhoods
Single-Family Homes
Single-family homes continue to be the most sought-after property type in North Kona. In August 2023 alone, 32 of the 46 transactions were for single-family homes, signaling strong demand.
Condominiums
Condominium sales have remained relatively stable but showed a slight dip with 11 sales in August 2023, compared to 12 in the same month the previous year.
Popular Neighborhoods
Areas like Kailua Village and Keauhou have seen a consistent uptick in interest, with properties spending less time on the market compared to other neighborhoods.
Pricing Trends
The average sales price of residential homes in North Kona was $694,000 in August 2023, marking a 4.8% increase from $662,000 in August 2022. This price growth is a testament to the area’s enduring appeal, but it’s also a point of concern for affordability, especially for first-time homebuyers.
Market Challenges
Affordability: With prices continuing to rise, affordability remains a significant challenge for many potential buyers.
Inventory: Despite the demand, inventory levels have not kept pace, leading to a more competitive market environment.
Economic Uncertainties: Factors such as inflation and interest rates are also causing some hesitation among prospective buyers.
Future Outlook
Despite the challenges, experts anticipate a robust market for the remainder of 2023, driven by strong demand, particularly for single-family homes. Many real estate professionals are optimistic that increased construction activity and a shift towards more remote work will continue to stimulate the market in North Kona.
Conclusion
North Kona’s residential real estate market presents a fascinating case of resilience and adaptability in 2023. While the district has its fair share of challenges, the upward trajectory in sales and price indicates that North Kona continues to be a prime location for investment and residential purposes. With a balanced view of the opportunities and challenges ahead, both buyers and sellers can make well-informed decisions in this captivating market.
Seizing Opportunity in a Time of Transformation
In this transformative era, there is both challenge and opportunity, and no one understands this better than my real estate team, The Papakea Collection. America’s rural landscape is buzzing, riding a wave of population growth and economic vitality not seen in decades. This surge presents a golden chance for both real estate investors and homebuyers, a phenomenon we are primed to leverage for our clients.
It’s no secret that the rural revival has strained schools, inflated housing prices, and tested road infrastructure. The challenges are undeniable, but so too are the unparalleled opportunities. Areas like North Kona are a microcosm of the broader trend affecting rural America, from Flathead County, Montana to Jackson County, Georgia. Prices may be rising, but so are the opportunities for a profitable investment, especially in regions adjacent to metropolitan areas and those with robust broadband coverage.
In a market where the words “Don’t California my Montana” resonate, The Papakea Collection knows how to navigate the complexities to find the perfect fit for both newcomers and long-time residents. Yes, the influx is changing political landscapes, school capacities, and even farmland prices. Still, it’s also revitalizing local economies and bringing a newfound prosperity that’s impossible to ignore.
We stand at a rare crossroads where the future’s shape is being decided. By understanding both the friction and the potential, we position ourselves, and more importantly, our clients, to make the most of these dynamic times. I, James T. Morrison, along with my dedicated team, look forward to guiding you through this exciting chapter in American real estate. Your dream home—or dream investment—is out there, and The Papakea Collection is your key to unlocking it.
Here’s to the transformative power of change and the enduring allure of opportunity. Let’s embrace the future, with all its challenges and promises, together.
James T. Morrison
The Papakea Collection
“Unlocking Tomorrow’s Opportunities Today”
About the Author
James T. morrison, R(S)
James is local realtor who has lived on Big Isand his entire life. He is proud to be Realtor and works his hardest to please his clients.
He is a proud memeber of the Papakea Collection along side his partnert, Julie Armstrong.
