Q4 2025 Hawaiʻi Real Estate Market Report — A Market Finding Its Balance

As we close the books on 2025, the latest quarterly data gives us a clear picture of where our island real estate market stands. The Q4 2025 Hawaiʻi Real Estate Market Report confirms what many of us working in the field have been feeling throughout the year: the market has shifted from the frenzied pace of the post-pandemic years into something far more measured and balanced.

There were no shocking surprises in the numbers. Instead, we see trends that began earlier in 2024 continuing into 2025—inventory growing, buyers becoming more selective, and sellers adjusting expectations. Homes are still selling, but strategy matters more than ever.

Below is a closer look at what happened in the final quarter of the year and what it means for buyers and sellers heading into 2026.

Download a full copy of the report here.

The State of the Market on Hawaiʻi Island

The real estate market on Hawaiʻi Island remains active, but the urgency we saw in previous years has cooled. Buyers now have options, and when options increase, decision-making slows down. This is not a negative development—it is simply a normalization after several unusually intense years.

Across the island, activity varies by location. West-side resort markets, Kona, Kohala Coast communities, and East-side areas all move at different speeds. Still, the overall picture points toward a healthier, more sustainable pace.

Inventory has expanded modestly, homes take longer to sell, and pricing has leveled off in many segments. For buyers, this means more negotiating room. For sellers, preparation and pricing are now critical.

Residential $3M+ Luxury Market Overview

“Hawai’i Island’s $3M+ market remains active, with demand centered on spaciousness and setting.”

In Q4 2025, there were 68 sales in the $3M+ residential market. Buyers wanted privacy, land, and great locations, especially oceanfront homes and large-acreage properties suited to long-term ownership rather than quick resale.

The median sold price in this group rose 20.6% year-over-year to approximately $6.15 million.

• Median sold price increased by roughly $200,000 quarter-over-quarter.
• Inventory rose.
• Days on market increased.
• Price per square foot edged slightly downward.

This tells us something important: luxury buyers are fewer and more focused on value. They are willing to pay for exceptional homes, but they take their time and negotiate carefully.

Luxury is active—but thoughtful.

Residential Market Snapshot

• Median sold prices trending slightly downward.
• Price per square foot easing.
• Inventory rising.
• Sold listings increasing modestly.
• Days on market lengthening.

Median Sold Price

The median sales price was $551,000, only 0.4% higher than the same time last year—essentially flat growth.

Average Price Per Square Foot

The average price per square foot decreased slightly to $610, a 2.2% drop from the previous year.

Inventory

Inventory increased approximately 15% year-over-year, reaching 849 active listings.

Days on Market (DOM)

The average days on market rose to 82 days.

Months of Inventory

Months of inventory increased from 4.4 to 5.1 months, indicating a balanced market.

10-Year History

Over the past 10 years, the median price of homes sold on Hawaiʻi Island has increased by 68%.

Sales by Property Type

Sales volumes declined year-over-year across property types, reflecting higher interest rates and cautious buyers—but activity remains strong compared to long-term averages.

The market is active—just not overheated.

Be sure to check out my listing in Puako — the only Puako Beach Condo with an active vacation rental license.

Looking Forward

“Hawai’i Island enters 2026 with a steady, balanced backdrop.”

Heading into 2026, the outlook remains steady. Buyers are active but patient, focusing on value and move-in-ready homes. Sellers who prepare properly and price realistically continue to succeed.

What I Get Out of This Data

From my perspective, working daily with buyers and sellers across the island, these trends reflect a healthier environment. Buyers are present but thoughtful. Homes sell when priced correctly and presented well.

This market gives buyers opportunity and rewards prepared sellers.

Hawaiʻi Island remains one of the most desirable places to live, invest, and retire. As we move into 2026, steady activity is more likely than dramatic swings.

Download the full report here.

Aloha,
Jan