As we move through the peak of summer, the Kailua Kona real estate market is entering a transitional phase. Inventory is growing, demand is showing signs of stability, and both the single-family and condo markets are approaching a more balanced state. Here is what you need to know this month:
Single Family Homes: Market Cooling, But Luxury Rebounding
The Single Family Home market in Kona has softened compared to this time last year. The median price dropped 1.6% YoY, and closed sales are down 15.8%. Active listings have climbed significantly since May, likely impacted by the implementation of a new tariff policy that has influenced buyer confidence.
One key milestone: Months Supply has reached 5.2 months, the first time since 2020. This marks a shift into a neutral market – a rare event in recent years for Kona. However, not all segments are slowing. After a quiet May and June, we’re now seeing movement in the $2.5M+ luxury home market, signaling selective buyer strength at the high end.
Condominiums: Signs of Recovery Post-Insurance Crisis
August marks one year since the onset of the Condo Insurance Crisis, and signs indicate the market may be adjusting. While median prices are still down 2.3% YoY, buyer activity is picking up. Condo pending sales are up 16.7% YoY (27% MoM), and the monthly supply has declined for three straight months – a positive sign for demand absorption.
Interestingly, active listings fell 11.2% month over month, though they remain elevated YoY at +26.4%. The pace of sales has improved, and condos are moving more quickly than earlier in the year. With summer still in full swing, this segment may continue to benefit from strong seasonal interest – though a traditional slowdown is expected as we move into September.
Overall Market Insights: Balance is Returning
The Kona real estate market is clearly shifting toward equilibrium. Both sectors are experiencing changes in inventory, sales pace, and buyer behavior. Single-family homes are now selling at a pace similar to condos.
With mortgage rates averaging around 6.6%, affordability remains a concern, but serious buyers are still active- particularly when value and timing align. As summer winds down, sellers, especially, should consider acting sooner rather than later to take advantage of the current window before fall brings a seasonal slowdown.
For more local market information, here is a link to our comprehensive Big Island Real Estate market flipbook.
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