July 18, 2019||Mortgages/Economy/Market

Trend Watch: Q2 2019 Hawaii Island Market Report

The following Big Island real estate market overview is compiled from MLS data for transactions that closed escrow in the 2nd quarter of 2019. Pictured above: MLS 628361, a Keauhou Estates property listed by Keauhou agent Zita Annen that sold for $1,100,000 in June 2019.

District Map with Median Prices Q2 2019

Q2 2019: Hawaii Island Sees a Real Estate Rebound

After a slow first quarter nationally and here on Hawaii Island, the 2nd quarter of 2019 ushered in an impressive uptick in activity in the Big Island real estate market. All three segments—residential, condo and land—saw increases in the total number of transactions over Q1. Residential and condo sales also outperformed Q2 of last year.

The islandwide median price for residential and condo properties increased slightly from Q1 2019 but dipped for land due to lower median price points in the Puna and Ka’u Districts, where 72% of the island’s total land transactions took place. The median price for condos increased in all districts that had condo sales in Q2 and six of the nine districts had increases in residential median price.

The above graphic breaks out the 649 residential transactions that took place in Q2 2019. Below is a deeper dive into the specifics by segment.

Residential Transactions

Total single-family residential transactions on Hawaii Island increased by 22% over Q1 and beat Q2 2018 by just over 4%. All nine districts had an increased number of transactions over Q1, and every district except Hamakua also had more transactions closed than in Q2 2018. The districts of South Hilo, North Kohala, South Kohala, North Kona and Ka’u all saw the number of closed transactions increase by at least 20%. The total number of closed residential transactions for Q2 2019 of 649 was up from 505 last quarter and 622 in Q2 2018.

Residential Median Price

The islandwide median price was up 4% from Q1 and currently stands at $385,000 (see the residential median price breakout by district at the top of the page). While there was an improvement over Q1, the combined median price across districts was off by 2% from Q2 2018. In the districts representing the most residential sales, only South Kohala had a decrease in median price from Q1, while the districts of Puna, South Hilo, North Kona and Ka’u posted an increased median price over Q1. Two of these districts had slight decreases in median price from Q2 2018, North Kona (-3%) and Puna (-6%).

Luxury Market Update

63 homes and condos closed escrow with sale prices over $1M across Hawaii Island in Q2, down slightly from 66 last quarter. The average number of transactions closing escrow over $1M for all of 2018 was 69 per quarter. Of the $1M+ properties sold in Q2, 37 were in North Kona, 19 in South Kohala, 4 in North Kohala, 2 in South Kona and 1 in Hamakua. The median price for homes sold over $1M was $1,410,000.

As of this post, there are 352 homes and condos listed for sale across the island priced above $1M, much lower than the 402 available last quarter at this time. All luxury listings on Hawaii Island can be viewed here.

Big Island Condominium Sales

The Big Island condo market exists primarily in three areas: Hilo (in the South Hilo district), Kona (North Kona district) and the Kohala Coast resort areas (South Kohala district). Condominium sales on the island continue to perform well with increases in both the number of units sold and median price in Q2 2019. Overall there were 250 condominium sales last quarter, up from 187 in Q1 and 233 in Q2 2018. The median combined condo price closed in Q2 was $411,000, up 11% from Q1.

North Kona had the greatest number of condo sales at 135 units sold and a median sales price of $372,000. South Kohala had 94 condo units close escrow at a median price of $524,500. South Hilo had 20 condo closings and a median price of $151,500.  As of this post, there are 297 active fee simple condo listings located on Hawaii Island, down from 336 at this time last quarter.

Residential Land Sales
(5 Acres Or Less)

With a great deal of available inventory and attractive pricing, the districts of Puna and Ka’u led the number of transactions with 248, and 75 closings, respectively. Together, these districts had 323 of the total 415 closed residential parcels in Q2. While number of sales are up for both districts from last quarter, they both remain down by 19% and 26% in total transactions from last year in Q2. Both districts also saw median pricing slip. Puna median price stands at $20,000 and Ka’u at $12,500.

Land sales elsewhere across the island generally saw an increase in transactions, with the exception of Hamakua (-2) and South Kona (-12). Land sales in South Hilo more than doubled from 12 last quarter to 25 in Q2. The median price for South Hilo residential parcels was $212,000. Other notable sales increases happened in North Kohala (from 3 to 10), South Kohala (from 7 to 16) and North Kona (from 24 to 30). North Kohala median price for Q2 was $200,000, South Kohala $195,000 and North Kona $317,500. There are currently over 1,500 active fee simple listings for land parcels up to 5 acres across the island. To view them, click here.

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