Howʻs the West Hawaiʻi Real Estate Market? May 2025

Depending on who you talk to, real estate agents are slammed – or dead in the water. Depending on who you talk to, the economic uncertainty of the first few months of 2025  combined with a home insurance crisis, has been awful for the West Hawaiʻi (or every) real estate market – or has had very little discernible effect on sales activity and prices.

I am kind of in the “busy on both the sell and buy side” and volume and prices holding steady camp. Year to date, three of my residential listings in the Hawi – Kapaʻau area sold at solid prices. So far this year I have represented two buyers of residential properties using 1031 exchanges, and another family who chose a beautifully appointed short term vacation rental condo in Waikoloa Beach Resort.

But all real estate is local and there are markets where volumes are way down – indicating that prices could follow.

This is not a comprehensively data-driven analysis. This is just my anecdotal-backed-by-data answer to this frequently asked question.

55-853 Kukini Pl in Hawiʻs Maliu Ridge neighborhood – beautifully updated home on an acre – generating daily showings MLS 717629

Healthy West Hawaiʻi Residential Real Estate Market – First Four Months of 2025 Statistics

By the numbers, the volume of transactions and sales prices for the first four months of 2025 is not significantly different than what we saw in the same period 2024 for the West Hawaiʻi residential real estate market. While not the frenzied sellerʻs market for single family homes we saw immediately post-pandemic, the number of homes for sale and days on market to sell support the continued health of the market from a sellerʻs perspective.

Buyers are plentiful. The one difference I am seeing is that primary residence buyers are less likely to make offers contingent upon the sale of their home. That tells me there is nervousness about the health of our feeder markets – whether that is reality or perception, I donʻt know.

For North Kona, South Kohala and North Kohala – in the first four months of 2025 there were 240 residential properties sold – versus 225 in the same period of 2024. In my North Kohala back yard, the numbers were 31 last year and 29 this year. Average sales price gets way thrown off because of the super high end sales – so look at median sales price instead.

Here is 2024:

And here is 2025:

Scattered Softness in Kona Coast and Kohala Coast Condo Real Markets

Late last year the anecdotal narrative was that rising insurance premiums creating rising monthly association dues and special assessments would completely scare off buyers for condos in our oceanfront and resort communities along the Kona Coast and Kohala Coast.  The YTD statistics for our Big Island condo markets do show some affect on the level of sales and days on market – but not much difference in the sales price. It is clear, however, that buyers are savvy about paying in line with recent comparable sales. Sellers priced aggressively above those levels are finding their listings racking up days on market without showings – even if other units for sale are similarly priced.

Here is high season (4 months) 2024:

And here is YTD 2025:

To give a bit of perspective, pre-pandemic it was not uncommon for resort condos to take more than a single year to sell – we sometimes joked about wanting to be the third listing agent, not the first. The numbers may be down a bit, but they are still indicating a healthy West Hawaii condo market.

Vacant Land Real Estate Market – Most Challenged Sector in West Hawaiʻi

Great inventory of Kohala Ranch vacant lots from under an acre to over 10 acres for sale and these ocean views. Some lots have approved building plans – which would speed up the building process.

Vacant land is the one real estate segment where sales volume has dropped dramatically in West Hawaiʻi in the first four months of 2025. Anecdotally, the reason given by our prospective buyers is the general economic uncertainty and the predicted effects of tariffs on building costs. Buyers say their risk aversion is making them more comfortable with the certainty of buying this house today at this price with this mortgage rate, rather than buying a lot to building their dream home.

By the numbers, here is 2024 – first four months:

And here are vacant land sales YTD 2025:

Bottom line for residential and condo sellers continues to be to price in line with recent sales. Bottom line for the residential or condo buyer continues to be offer in line with recent sales. The West Hawaii real estate market continues to be stable in those segments.

If you have been thinking of buying vacant land – this could be an opportune time to look as inventory is healthy and contractors are starting to have more availability now that they have built homes for those folks who started the process in 2021 or 2022.