Market Trends

Touring QTR 1 2024

When looking at projected demand (column 6), there’s no surprise that Hilo and HPP remain extremely popular. Remember that the projected demand is calculated using the number sold in Quarter 1 times 4 and comparing it to the number of active listings added to those contingent/under contract. Most of the contingent sales will move to close which, in reality, pushes the number of homes available to meet demand even lower.

Interestingly, my buyer was recently in back-up position for a home priced over 2 million in Hilo (local buyer). I am told there were 5 offers. This demonstrates demand for higher priced homes even in Hilo and it’s not unusual to see homes over $800,000 moving to close in HPP. Local buyers normally hover around the $450,000 price point. There are few financeable homes in Hilo and only a handful in HPP listed at that price. This seems to push local buyers to Ainaloa where insurance is still readily available.

Factors Influencing Buyer Choices

Homes in HPP tend to be newer and offer more land than a comparable home in Hilo. HPP roads will eventually all be paved. Ainaloa homes are on smaller lots and, of course, both HPP and Ainaloa rely mainly on catchment water. Right now, Nanawale seems to have the most homes available. Prices are also most affordable.

Challenges in Lava Zones and Market Predictions

Insurance and loan programs are, of course, a problem in the so-called “lava zones” (1 & 2). In general, rates are hovering under 7% which isn’t terrible but affect a buyer’s ability to buy. We are told that rate decreases are coming but don’t expect to see 3% again soon. Price reductions are happening but prices still generally remain above of last year. National predictions are that inventory will increase but with demand so high, it seems unlikely this will affect pricing for the near term.

Personalized Home Valuation

Don’t see your neighborhood? As always, feel free to give us a call or drop us an email so we can deliver your personalized Home Valuation directly to your inbox. It’s free and no one will call. Don’t do computer? No problem. We will even snail mail the information if you wish.

Whether buying or selling, Team Nakanishi is always here to help. Onward to the rest of 2024!

*Thanks to Hawaii Information for the data included here.

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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