Looking at a snapshot of the West Hawaii housing market, you can see that the North Kohala, South Kohala and South Kona markets have seen double digit price increases for single family homes from January 2017 to January 2018. North Kona fell 12.5% year over year from a high of $640,00 for a single family home last January to $560,000 last month, according to data from the Hawaii Information Services.
According to Altos Research, the current median price for a 1300 sq ft 3 bedroom/2 bath home in Kailua Kona is $560,000 and a 2,100 sq foot 3 bed/2 bath single family home is $833,950. According to Zillow, home prices for single family homes are solidly where they were at the peak of the market in 2007 and condos are starting to catch up.
“As homebuyers realize they are priced out of the single family home market above $500k, they are flooding into the condo market, which has remained relatively flat for quite some time. I am now seeing condo prices in Kailua Kona going up by $3000 a month, a trend I noticed since November,” stated Lance Owens, LUVA Real Estate Realtor and President of the West Hawaii Association of Realtors. According to statistics from the local MLS, condo prices in South Kohala saw a 24% price increase year over year from $440,000 to $548,750. North Kona saw a dip in closed sales this year at 22 from 35 last year, but a 13.42% increase in prices from $300,000 to $340,250 year over year. Home sales dipped due to the persistent lack of homes on the market, driving up the prices for the remaining homes. Here are some valuable tips we created if you are interested in purchasing a condo in West Hawaii.
There continues to be an influx of homebuyers flocking to the Puna region, where 61 homes sold there last month compared to only 27 in North Kona and single family home prices rose by 27.66% as people are looking for affordable housing options. “For people unfamiliar with the Big Island of Hawaii, they don’t understand how the median price of a single family home can be $560k in Kailua Kona, but $240k in Puna. It’s all about the job opportunities, the lifestyle near a tourist town, the geography and proximity to some of the best beaches in the Hawaiian islands. Another factor is that Puna is located on Lava Zone 1-2 and Kona located on Lava Zone 3-4, which has a direct impact on price of insurance”, stated Owens. Vacant land sales are the main driver in the Puna District.
Overall, demand still remains high for homes in West Hawaii, and homes priced right are not sitting on the market long. Getting the best price for your home is always our goal and negotiating a great deal is what we offer to our buyers. Contact us at LUVA Real Estate today if you would like to learn more about listings on the market or how we can prepare your home for sale.