The housing market in Hawaii—particularly in Kailua-Kona—continues to reflect a dynamic blend of opportunity and competition. With rising inventory, fluctuating condo activity, and continued interest in luxury properties, the local market offers valuable insights for both buyers and sellers. Here’s your in-depth look at the latest trends from September 2024.
Single-Family Home Market Trends in Kailua-Kona
Inventory in Kailua-Kona saw a notable increase of 20.4% in September, with 295 homes listed for sale. This signals a slight shift toward a more balanced market, although demand remains strong.
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Average Sales Price (ZIP 96740): $2.2 million
This reflects a 10.55% year-over-year increase, largely driven by a spike in luxury home sales. -
Median Home Price: $1.485 million (up from $1.299M previously)
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Average Days on Market: 55 days
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Total Homes Sold: 26 (a 6% increase from the previous month)
What This Means for Buyers and Sellers
While luxury listings may take longer to sell, buyer interest remains high. For those exploring the Hawaii housing market, Kona continues to be a competitive, high-demand area.
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Condo Market Update: A Mixed Picture
The condo segment of the housing market Hawaii showed more complex movement. Inventory decreased by 1.69%, leaving just 232 units available at the end of September.
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Average Sales Price: $613,500 (up 21.72% YoY)
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Median Condo Price: $544,000
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Average Days on Market: 53 days
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Condos Sold: 24 (a 17.24% decrease month-over-month)
Interpreting the Condo Numbers
The decline in condo sales may be linked to uncertainty surrounding vacation rental regulations. Many sellers appear hesitant, while buyers remain focused on well-priced, mid-tier properties. The small gap between median and average prices points to steady interest in the affordable condo range.
Seller’s Market Conditions Still Hold
Despite rising inventory, the Kailua-Kona housing market still leans toward sellers:
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Months of Inventory: 4.41 months (still below the 6-month balanced-market threshold)
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List-to-Sale Price Ratio: 97.3%
What Sellers Should Know
Buyers now have more leverage to negotiate, but homes are still closing close to asking price. A well-priced, well-prepared home can still sell quickly in this climate.
Real Estate Prices by Square Foot
Price per square foot in Kailua-Kona shows how pricing scales by price tier:
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$600K–$1M: $437/sq. ft.
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$1M–$1.5M: $683/sq. ft.
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$1.5M–$2M: $752/sq. ft.
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$2M–$5M: $1,009/sq. ft.
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$5M–$10M: $2,414/sq. ft.
These figures reflect continued appreciation, particularly in the luxury segment of the Hawaii real estate market.
Interest Rates and Buyer Behavior
Interest rates are expected to decline into the low 5% range by late 2024 or early 2025, which could trigger a surge in demand. Buyers waiting on the sidelines may begin entering the market, especially if rates drop and inventory remains healthy.
5 Tips for Sellers in Today’s Market
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Price Your Home Accurately: Avoid overpricing in a shifting market.
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Offer Buyer Agent Commissions: This still encourages stronger offers.
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Be Open to Negotiation: Counter every offer—it’s better than no response.
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Make Showings Easy: Availability increases buyer activity in the first few weeks.
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Service Your Systems: Ensure HVAC, roof, plumbing, and appliances are in top shape.
Final Thoughts on the Housing Market in Hawaii – September 2024
The Hawaii housing market remains strong, especially in sought-after areas like Kailua-Kona. With more listings and steady demand, it’s a good time for buyers to negotiate and for sellers to be strategic.
Whether you’re looking to buy, sell, or simply understand your home’s value, I offer free, no-pressure evaluations and personalized advice based on real-time market data.
Reach out today to get expert guidance on the Kailua-Kona real estate market.