Big Island

Second Quarter East Hawaii Sales Report (2015) – Home Prices Projected to Spike

My how time flies! Hard to believe we have passed the mid-point of 2015! With the exception of the areas still recovering from the threat of lava (especially Nanawale, Ainaloa, Leilani, and likely Hawaiian Beaches), East Hawaii sales are moving right along.

(All numbers are residential /condo median numbers provided by Hawaii Information Service)

(All numbers are residential / condo median numbers provided by Hawaii Information Service)

Hilo Sales Numbers & Pricing Continue to Trend Up

Interestingly, the median price of active listings in Hilo is less this year than last, which theoretically means one of two things: Either the gap between asking and sales price will decrease or the next reported median sales price point will decrease.

  • The current median year-to-date sales price in the South Hilo area is $324,490.
  • The median price of a home that moved to closing in Hawaiian Paradise Park (HPP) declined during this past quarter compared to last year (number of sales is up), but in looking to the future, the median price of homes moving to close indicates that this trend is reversing.
  • There was little activity in Pacific Paradise Gardens while Volcano Golf and Country Club (VGCC) perked up.

There is compelling evidence that East Hawaii prices are about to spike in a big way. Remember, in simplest terms, supply and demand dictates pricing, so let’s look at things a different way. Using current numbers, the approximate demand for homes in Hilo over the next year will be 288 homes. With only 160 on the market, supply will not nearly meet current demand. Similarly, HPP demand should be around 244, but there is less than half that number currently for sale (113).

Even areas recently threatened by lava will not, in theory, have enough inventory to meet demand (Ainaloa: 28 demand/22 supply, Leilani: 36 demand/19 supply, Nanawale: 36 demand/12 supply).

Only VGCC deviates, but given the up-tick this past quarter, there’s a good possibility this area will trend upward as well.

Don’t See Your Neighborhood?

I wish space would allow me to cover every area, but as always, if you don’t see your neighborhood listed, I’m happy to provide a custom report. Keeping up with your neighborhood on a regular basis is very easy. All I need is your address/TMK and I can arrange for you to receive periodic factual updates right to your inbox. It’s the simplest way I know to determine if your piece of paradise is going up!!

About the Author

Denise Nakanishi

Denise Nakanishi is a REALTOR Broker with Hawai'i Life. Denise Nakanishi is one of Hilo's most acclaimed real estate agents. She reached the rank of Major in the US Army and is now known by many as "Major Mom." The nickname fits–not only does Denise bring the discipline and mission-oriented attitude you'd expect, she's also caring and compassionate, always looking out for her clients like they're her own family. Having made the Big Island her home since 1987, Denise combines her extensive knowledge of the area with a sharp focus on customer service and the results speak for themselves. She's the recent recipient of the Best East Hawai`i, Best of Zillow, Chairman's Circle Award, President's Circle, Top Producing Agent since 2001, and Realtor of the Year awards. Denise stays ahead of the curve because she's passionate about education–she served as Education Chair for Hawaii Island REALTORS® for many years. She's one of Big Island's best real estate resources, known for her weekly article in the Hawaii Tribune Herald. Denise leads Team Nakanishi for Hawai`i Life, who is committed to their family, work, and community. In her little time away from work, Denise is a committed runner and Grandy. She also devotes many hours to various Veterans' Organizations, the East Hawaii Cultural Center, and the Hawaii Island REALTORS®. You can email me at or via phone at (808) 936-5100.

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