big Island Real Estate Market
As the warm, tropical winds of the Big Island whisper tales of ancient legends and the vibrant dance of waves serenades the shores, a different rhythm pulsates deep within the heart of Hawaii – the heartbeat of its ever-evolving real estate market. This article is your compass, guiding you through a realm where numbers and dreams intertwine, where market trends become the lyrics of a song you’re destined to be a part of. We journey through the varying landscapes of the Big Island, from Puna’s lush embrace to North Kona’s sun-kissed coastlines, unveiling the hidden truths behind sales statistics, the artistry of buying in changing times, and the strategic ballet of purchasing amidst fluctuating interest rates. Yet, as you delve deeper, remember: the essence of Hawaii’s real estate is not just in its figures, but in the stories waiting to be lived, the futures waiting to unfold. Welcome to a narrative of possibility, of hope, and of finding your own rhythm in the grand dance of life.
Big Island of Hawaii Market Update - From August to September Year To Date
As the Big Island’s fiery volcanoes sculpt new landscapes and the azure waves shape its shores, so too does the rhythm of the real estate market evolve with the passing months. Comparing September 2022 with September 2023, the island whispers tales of shifts and opportunities in its property bazaar.
Overall Sales:
- September witnessed an 11.24% dip in sales in 2023 when juxtaposed with the same month the previous year.
- Zooming out for a broader view, the year-to-date numbers reveal a decline of 29.60% in sales.
Sales Volume:
- The month of September 2023 saw the sales volume shrink by 21.40% from its predecessor in 2022.
- For the avid statisticians among us, the year-to-date sales volume too marked its territory lower by a notable 32.11%.
Median Sales Price:
- Now for a brighter note! September 2023 beamed with a radiant increase in the median sales price, surging up by 59.66% from September 2022.
- Alas, the year-to-date median price did not ride the same wave and dipped by 21.11%.
Journey Through The Districts:
- Puna: A gentle dance with a slight 1.28% dip in residential sales, yet the vacant land sales rhythm increased by 10.38%.
- South Hilo: A more dramatic ballet with residential sales tumbling by 53.33% and vacant land sales cascading down by 57.14%.
- North Kohala: A standing ovation for a staggering 250% crescendo in residential sales!
- South Kohala: A gentle sway with residential sales dipping by 13.33%, but condominium sales pirouetting upwards by 35.71%.
- North Kona: Residential sales waned by 41.86%, while condominium sales gracefully stepped with a minor 3.23% dip.
- South Kona: The residential beat slowed by 22.22% and vacant land sales took a sharper dive by 41.67%.
- Kau: The residential serenade softened by 31.25% and vacant lands sales also hushed down by 31.58%.
Golden Highlights:
- North Kohala’s Resonance: A mind-bending 280.06% crescendo in the residential sales volume.
- South Kohala’s Quietude: A significant mellowing in vacant land sales volume by 95.30%.
- North Kona’s Lull: Residential properties sales volume ebbed by nearly half, marking a 49.61% reduction.
- South Kona’s Elevation: A sterling rise in the median sales price for residential properties by 48.20%.
As the real estate orchestra continues to play, understanding the nuanced compositions of economic symphonies, local employment crescendos, and the dirge of interest rates becomes essential. Whether you’re the maestro or a connoisseur, approach this concert with an informed ear and a keen strategy.
Big Island Real Estate Market: Condos
On the paradisiacal shores of the Big Island, amidst the backdrop of lava-sculpted terrains and tropical vegetation, condominiums offer a contemporary lifestyle rooted in paradise. As the waves lapped the shores, and the sun set on another year, here’s an encapsulation of condominium sales for our vibrant island community.
Volume and Trends:
- A close inspection of the numbers reveals a mosaic of trends. While some districts like South Kohala showcased a buoyant 35.71% rise in condo sales, others, such as North Kona, witnessed a gentler reduction, edging down by a mere 3.23%.
Median Sales Price:
- 2023 has been intriguing, with the pendulum swinging in various directions. Some areas, such as South Kona, gleamed with a 48.20% spike in the median sales price for condos. This speaks volumes about the desirability and perceived value of condominiums in that district.
Days on Market:
- An essential metric that often mirrors market temperature, the average days on market varied significantly between districts. While North Kona condominiums were snapped up in just about 45 days, the South Kona condos took a more leisurely 119 days on average. Such disparities suggest North Kona’s market might be hotter, with properties moving faster, possibly due to its prime location, amenities, or other sought-after features.
Sales to List Price Ratio:
- An important indicator of the bargaining power between buyers and sellers, most districts still saw condos selling close to their asking price. With ratios such as 93.59% in North Kona and 93.34% in South Kohala, buyers seem to recognize the inherent value of these properties, often closing deals without demanding significant price reductions.
In Closing: The Big Island’s condominium market is a dynamic tapestry of trends, numbers, and human stories. Every purchase reflects a dream, an investment, or a new chapter. As the island continues to enchant with its beauty and allure, condominiums remain a pivotal part of the island’s real estate narrative, offering both luxury and convenience, rooted in the heart of paradise.
Big Island Real Estate Market: Land
The Big Island, with its ever-changing terrains, from volcanic landscapes to lush rainforests, provides a canvas for dreams to be built upon. As we venture into the wild embrace of nature and ponder the tales of the land, let’s delve deep into the contours of land sales on the Big Island.
Volume and Momentum:
- The ebb and flow of land sales have painted a vivid picture. Notably, Puna stood tall with a 10.38% increase in vacant land sales. In stark contrast, the southern charms of South Kona witnessed a significant downturn, with vacant land sales plummeting by 41.67%. South Hilo too, felt the squeeze with a dip of 57.14% in its land sales.
Median Sales Price:
- Land, the very essence of our island’s foundation, has seen varying median prices across districts. The sheer variation underscores the diverse topography, accessibility, and potential usage of these plots. Though specific figures were not provided for all districts, South Kona gleamed in the spotlight with its residential properties observing a 48.20% surge in median sales price.
Days on Market:
- The duration plots lingered on the market offered intriguing insights. While the average days on market varied across districts, it’s evident that certain terrains, perhaps due to their unique features or strategic locations, garnered quicker interest and sales.
Sales to List Price Ratio:
- The gap between asking and selling prices for lands can be revealing. While some districts saw lands selling quite close to their list prices, others indicated room for negotiation. These ratios, while numeric in essence, narrate the tale of buyer and seller expectations, market valuation, and the inherent potential seen in these plots.
In Retrospect: The story of land sales on the Big Island is as varied and vast as its landscapes. From the rugged lava fields to the serene pastures, every piece of land holds promise and potential. Whether it’s for investment, cultivation, or building a dream home, the allure of owning a slice of the Big Island remains undiminished. As we tread forward, these lands, rich with history and potential, await their next chapter in the ever-evolving tapestry of island life.
papakeacollection
July 23, 2024
Big Island Hawaii Real Estate Market: Residential Housing
The allure of island life, with its promise of serenity, rich culture, and nature’s embrace, has been a beacon for many. The Big Island, with its intricate dance of traditions and modernity, provides a myriad of residential opportunities. Let’s embark on a journey through the corridors of residential sales on this Hawaiian paradise.
Sales Dynamics:
- Puna: Standing resilient, Puna displayed minor fluctuations with a mere 1.28% decrease in residential sales.
- South Hilo: A more dramatic shift was observed here, with residential sales plummeting by a significant 53.33%.
- North Kohala: The star of our story, North Kohala saw a remarkable surge, recording a 250% increase in residential sales.
- South Kohala: In a contrasting rhythm, residential sales here dipped slightly by 13.33%.
- North Kona: The tides seemed rougher in North Kona with residential sales receding by 41.86%.
- South Kona: Observing a decline, South Kona marked a 22.22% decrease in its residential market.
- Kau: Moving to the southern end, Kau experienced a dip of 31.25% in residential sales.
Pricing Chronicles:
- The residential landscapes saw fluctuations in median sales prices, with some areas, like South Kona, celebrating a 48.20% escalation. North Kohala and South Kohala, with their luxe offerings, stood tall with impressive median prices, underscoring the value and demand in these regions.
Market Pulse:
- The rhythm of days on market and the sales-to-list price ratios narrated tales of market sentiments, negotiation dynamics, and buyer urgency. For instance, the brisk pace in North Kona, with an average of just 45 days on market, highlighted the region’s desirability.
Reflections: The tapestry of residential sales on the Big Island is rich and varied. From quaint island homes to luxury retreats, the market dynamics reflect both the dreams of prospective homeowners and the realities of island economics. At its heart, each sale is more than just a transaction; it’s a story of families finding their haven, investors seeing potential, and individuals embracing the island spirit. As we sail forward, the essence of the Big Island’s residential charm remains evergreen and inviting.
Potential Price Adjustments and the Role of Cash Buyers
The Big Island’s real estate scene is currently in flux. While certain areas have shown a notable decrease in sales, suggesting possible future price adjustments, there are other market dynamics at play. The recent decision by the Federal Reserve to increase interest rates adds another layer to this evolving landscape.
Areas of Potential Price Adjustments: Regions on the Big Island witnessing a decline in sales might hint at upcoming price corrections. Notable areas include:
South Hilo: A striking 53.33% drop in residential sales and a 57.14% decrease in vacant land sales might signal potential price recalibrations.
North Kona: The area’s 41.86% decline in residential sales indicates a potential price re-evaluation.
South Kona: With reductions of 22.22% in residential sales and 41.67% in vacant land sales, South Kona is an area to monitor closely.
Kau: The 31.25% decrease in residential sales and a 31.58% decline in vacant land sales suggest potential pricing adjustments.
Cash Buyers and the Market Dynamics: Despite the changes in the financial environment, cash buyers remain active and undeterred, particularly when purchasing homes and condos. Their actions are largely insulated from interest rate fluctuations, providing them with a unique advantage in the market.
Furthermore, the current market boasts limited inventory. With fewer properties available for purchase and sustained demand from cash buyers, there’s a likelihood that property prices might remain elevated. The low inventory paired with the purchasing power of cash buyers could counteract the downward price pressures that typically accompany decreased sales and higher interest rates.
Final Thoughts: For potential buyers requiring financing, the market may present challenges, but opportunities remain. On the other hand, sellers should be attuned to the evolving dynamics and adjust their strategies accordingly.
In conclusion, the Big Island real estate market is multifaceted, with various factors influencing its direction. Staying informed and agile is essential, and as always, consulting with local real estate professionals will provide invaluable insights and guidance.
A Forward-Thinking Strategy: Buy Now and Refinance Later
In the ever-evolving real estate market of the Big Island, potential buyers may be faced with the current challenge of higher interest rates. While this might seem like a deterrent, there’s a strategy that many are considering to navigate these financial waters: purchasing a home now and refinancing later.
Understanding the Approach: The basic idea here is to secure a property in the current market, even if it means accepting a higher interest rate on your mortgage. Given the unpredictability of markets and rates, there’s potential for interest rates to drop in the future. When this happens, homeowners can consider refinancing their mortgage to benefit from the lower rates, which can lead to considerable savings over the term of the loan.
Why Consider This?:
High Rental Costs: The rental market on the Big Island is notably pricey. In many cases, monthly mortgage payments (even at higher interest rates) can be comparable to, or even less than, rental payments for a similar property. Thus, investing in a property might make more financial sense in the long run than pouring money into rent with no return on investment.
Equity Building: Purchasing a home allows you to start building equity immediately. Over time, this can be a significant financial advantage, especially when considering the appreciation potential of properties on the Big Island.
Personal Satisfaction and Stability: Beyond financial considerations, owning a home brings a sense of stability and pride. You have the freedom to customize your space, and there’s no need to worry about lease renewals or rent hikes.
Market Anticipation: If history is any guide, interest rates fluctuate. By purchasing now and keeping a keen eye on market trends, you position yourself to capitalize on potential rate drops in the future.
In Conclusion: While the prospect of higher interest rates might seem daunting, it’s crucial to view the bigger picture. If you find a property that feels right and aligns with your long-term goals, purchasing now and considering refinancing later might be a savvy move. After all, the right home is not just about current financial metrics but about finding a space that resonates with you and offers long-term value.
The Pulse of Paradise: A Concluding Note
As we navigate through the intricacies of data, numbers, and market dynamics, I’m reminded that behind every home sold or purchased, there’s a deeply personal story. It’s not just about bricks, mortar, or parcels of land—it’s about the hopes, dreams, and aspirations of individuals and families. As a local, raised amidst the beauty and spirit of the Big Island, with a large family and deep roots here, I understand this sentiment profoundly.
For those who’ve found their dream homes here, may you relish every sunrise and every whisper of the ocean breeze. To those still on the quest, trust that your perfect slice of paradise awaits. In every transaction, I don’t just see properties changing hands, but rather lives embarking on new chapters, rich with promise and potential.
If you’re ever in need of guidance, advice, or simply a conversation about the Big Island real estate landscape, I’m just a call or email away. As a Realtor with the Papakea Collection, it’s my honor and privilege to be part of your journey, be it finding a new home or bidding farewell to an old one.
James T. Morrison, R(S)
(808) 339-8249
jtm@jamesmorrisonhawaii.com
Your locally raised realtor, forever connected to the heartbeats of Hawaii. Here’s to the stories we’ll write together, the dreams we’ll realize, and the legacy we’ll leave on this enchanting island.
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
