Recently, Hawaii Life released two market reports revealing subtle but significant shifts in the state’s luxury real estate landscape — including the Big Island.
At first glance, it might seem that Hawaii’s high-end market is cooling. But look closer, and a more nuanced story emerges: this isn’t a downturn, it’s a recalibration.
Download/view full copies of the reports here:
- 2025 Q2 YTD Hawaii Luxury Market Report
- Hawai‘i Island Real Estate Market Report Q3 2025 Year-to-Date
A New Rhythm in Hawaii Luxury Real Estate Market
The latest data shows that Hawaii’s luxury market is adjusting to a more deliberate pace. Inventory has risen in many areas across the islands, especially at the ultra-luxury level. Volume has slowed, but this isn’t the result of distress or economic panic — it’s about timing, lifestyle shifts, and personal transitions.
Buyers are becoming more discerning, often waiting for the perfect turnkey property rather than tackling a renovation. Sellers, meanwhile, are recognizing the importance of pricing and presentation. Gone are the days of quick, emotional offers. This market rewards preparation, patience, and realism.
Statewide Trends: A Market Finding Balance
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Inventory is up statewide, especially in ultra-luxury price points. More properties are surfacing that haven’t been on the market in years.
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Days on market are rising, signaling that buyers are taking time to evaluate and compare before acting.
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Buyers favor move-in-ready homes. Dated properties, even with potential, are sitting longer, while newly built or recently remodeled listings attract stronger offers.
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Private listings and auctions are increasing, reflecting a strategic and quieter market where exclusivity and timing matter.
Big Island: Subtle Correction, Strong Foundation
On the Big Island, the shifts are even more telling. Comparing year-to-date quarterly data from Q1 to Q3 2025:
What stands out is the price moderation alongside increased sales activity. While the median sold price for $3M+ homes has declined since the beginning of the year, the number of sold listings has more than doubled — clear evidence that realistic pricing is moving inventory.
Property for sale on Big Island has actually decreased, even as statewide supply grows. That’s a critical distinction: demand remains steady in key resort areas, particularly along the West Side, where newer construction and turnkey properties continue to attract strong attention.
Meanwhile, days on market have increased, confirming the shift toward more deliberate decision-making. Sellers are learning that success now depends on pricing alignment and presentation — not just being on the market.
The Quiet Shift Beneath the Surface
What we’re seeing statewide — and especially on the Big Island — is a quiet correction, not a collapse. The market is filtering out over-ambitious listings and rewarding those that meet today’s buyer expectations.
Luxury buyers are becoming more value-conscious and selective. Sellers who adapt to that mindset are still achieving excellent results, while those holding to aspirational pricing are experiencing longer timelines.
Interestingly, while median prices have softened quarter to quarter, the caliber of homes selling remains high. That reflects a shift toward quality over volume — a defining theme for 2025.
Residential 3m+ Luxury Market Overview
Luxury price points are holding steady as high-end demand persists.
Luxury sales have dropped from last year, while there is a slight rise in median sold price. While overall inventory has grown this year, luxury product is still limited in key resort and oceanfront areas on the West Side. Buyers continue to show interest in top-tier properties, and sellers with well-positioned listings are finding traction even in a more selective market.”
Residential Submarket Snapshot
Residential Market Snapshot
The residential market on the Big Island largely follows the same trends as the luxury market: prices have fallen since the beginning of the year, sales have increased, and inventory has decreased. See the numbers below.
“Hawai’i Island saw a steady year marked by sustained interest and moderate price adjustments.”
Sales by Property Type
Looking Forward
“Steady demand and buyer selectivity likely to continue as the market moves into the new year.
As Hawai’i Island moves into Q4 and beyond, steady demand and expanding inventory suggest a paced but active end to the year. It seems plausible that buyers will remain selective, focusing on well-priced, move-in-ready properties. Broader market conditions may factor into buyer and seller decision-making.”
What I Think About It
From where I stand, this “correction” is healthy. It’s creating balance and restoring a sense of normalcy after years of frenetic activity.
For sellers, this means your strategy matters more than ever. Proper pricing, presentation, and understanding what today’s buyers value — turnkey condition, modern design, and lifestyle appeal — are key to standing out in a more selective market.
For buyers, this moment offers real opportunity. There’s less frenzy, more choice, and room for negotiation — especially for those ready to act decisively when the right property appears.
On the Big Island, luxury inventory is decreasing even as statewide supply rises, suggesting that well-positioned Big Island homes for sale are holding value and may even become more desirable in the months ahead. Add to that the 10-year trend of nearly 70% appreciation on the island, and it’s clear: long-term value remains strong.
This isn’t a market in distress — it’s a market rediscovering its rhythm. And for those who understand Hawaii’s unique cycles, that’s something to feel confident about.
Download/view full copies of the reports here:
2025 Q2 YTD Hawaii Luxury Market Report
Hawai‘i Island Real Estate Market Report Q3 2025 Year-to-Date
Ta Da!
Aloha,
Jan
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