July 19, 2018||Mortgages/Economy/Market


Trend Watch: Q2 2018 Hawaii Island Market Report

The following Big Island real estate market overview is compiled from MLS data for transactions that closed escrow during April, May and June of 2018. Pictured above: MLS 611035, a property in Bayview Estates sold by “Team Sold Hawaii” in May. 

BIG ISLAND RESIDENTIAL SALES—Q2 2018

Once again, there was an increase in total unit sales in Q2 2018 with 622 sales across Hawaii Island, an increase over Q1 of 55 units. Six districts saw increases, with the greatest increase in North Kona (+35), while South Hilo and South Kohala increased by 21 each. The number of homes closing escrow in Puna declined in Q2 by 33 units while North Kohala and Ka’u experienced only very slight decreases. Good news for buyers is that the pending ratio has decreased from Q1, indicating an improved inventory situation across the island.

Islandwide, the median price increased in Q2 over Q1 and now stands at $399,000. By region, the west side of Hawaii Island (North Kohala to South Kona) stands at $630,000. South Hilo, North Hilo and Hamakua (combined) is at $368,300, and Puna and Kau (combined) come in at $231,500. The districts of South Hilo, North Kohala and North Kona show median price increases over Q1 2018.

District Map with Median Prices Q2 2018

Luxury Market Update

88 homes and condos closed escrow with sale prices over $1M across Hawaii Island in Q2, up from 71 closed $1M+ sales in Q1. This is also up from 2017, which saw an average of 70 residential properties sold per quarter for over $1M. Of the 88 sold in Q2 2018, 85 closed on the west side of the island (North Kohala–10, South Kohala–32, North Kona–40, and South Kona–three). The remaining three closings were located in South Hilo.

Median price in this market dipped to $1,612,500 from $1,800,000 in Q1, which included this sale in Kukio on the Kona Coast closing escrow at $27,500,000. This is the highest priced real estate sale in the State of Hawaii so far in 2018. As of this post, there are 295 active fee simple luxury listings across Hawaii Island, which can be viewed here.

Big Island Condominium Sales

The condo market on the Big Island primarily comprises three main areas—the population centers of Hilo (in the South Hilo district), Kona (North Kona district) and the Kohala Coast resort areas (South Kohala district).

As with single-family residential properties, the pending ratio for condominium properties has also dropped from Q1, indicating higher inventory levels. As of this post, there are 308 active fee simple condo listings located on Hawaii Island priced from $55,000 at Puueo Villa in Hilo to $8,100,000 at Shores at Kohanaiki Resort in North Kona. Overall, 38 more fee simple condo properties sold in Q2 than in Q1, with 121 (+32) in North Kona, 92 (+14) in South Kohala and 18 (-8) in South Hilo.

Island-wide, the median price of condos for Q2 2018 reached $400,000, surpassing the 2008 high of $370,000, as well as the single family residential islandwide median price. Median price for condos sold in Hilo dropped by almost $9,000 to $147,000, climbed by $73,000 in South Kohala to $570,000 and dropped by about $5,000 in North Kona to $360,000. The lowest condo sale was a Waiakea Villas unit in Hilo which sold for $80,000, and the highest being in South Kohala at Mauna Kea Resort which closed at $4,750,000.

RESIDENTIAL LAND PARCELS
(<5 ACRES)

As is always the case, the Puna District led in sales of land parcels with 294 closings in Q1 2018, up by 22 from Q1; however, median price did decrease by almost $4,000. By contrast, the Ka’u District increased sales by 24 parcels to 101 total and the median price increased by about $4,000. In fact, with a combined total of 395 closed sales, the Ka’u and Puna Districts accounted for over 81% of all vacant land sales on Hawaii Island.

Four island districts, Puna, North Kohala, South Kona and Ka’u all had increases in vacant land sales, with notable increases only in Puna and Ka’u. The remaining five districts had fewer closed vacant land sales, although only South Hilo had a notable decrease of 23.

The median sale price for residential parcels in Q2 2018 was $17,750 in Puna, $14,000 for Ka’u, $160,000 (unchanged) for South Hilo, $179,880 for South Kohala, $245,000 for North Kona and $61,000 for South Kona. There were too few sales in North Hilo, Hamakua or North Kohala for significant reporting.

By region, the South Hilo/North Hilo/Hamakua year-to-date median sale price for land is $165,000 versus $170,000 for all of 2017. Ka’u and Puna (combined) remains unchanged from 2017 at $18,000, and West Hawaii (North Kohala to South Kona) increased by $5,000 to $220,000.

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