April’s economic turbulence made its mark on real estate markets across the country, and Kailua Kona was no exception. While national momentum picked up in March with pending home sales rising 6.1% (according to the National Association of Realtors®), Kona’s April data reflected a momentary cool-down as financial markets and global uncertainty rattled buyer confidence. Here’s what the latest data reveals about the Single Family and Condominium markets on the Big Island:
Single Family Homes: Steady Prices, Fast Sales, Lower Activity
Kona’s single family home market remains relatively resilient despite softer buyer activity in April. The median price stayed strong at $1,395,000, representing a 3.3% increase year-over-year. However, pending sales dropped 25.7%, reflecting a slower pace of new contracts, a likely result of April’s economic unease.
Homes are still moving quickly, with the median Days on Market at just 18 days for sold homes, down 18% from the same time last year. Inventory remains tight at approximately 70% of pre-COVID levels, holding the months supply steady at 4.5 months. This constrained supply continues to support home values even as demand pulls back.
Condominiums: More Supply, Slower Movement
The condominium segment softened more visibly in April. The median price fell slightly to $679,900, down 0.4% year-over-year. Pending sales dropped 10.4%, and Days on Market soared to 53 days, a 278.6% increase compared to May 2024. These numbers indicate that condos are taking significantly longer to sell.
Inventory has rebounded, with active condo listings now close to pre-pandemic levels. The months supply rose to 7.2 months, suggesting that buyers are taking more time to make decisions amid greater availability and market caution.
What’s Influencing the Market?
April’s broader economic landscape played a role in the market’s performance. A volatile start to the month was followed by improving conditions. Stock market fears eased as the S&P 500 posted its longest winning streak in two decades. A strong jobs report and renewed optimism about U.S.-China trade relations also helped lift investor confidence. While national pending home sales surged in March, April’s uncertainty appears to have delayed decision-making among buyers on the Big Island.
Both the Single Family and Condo markets saw month-over-month price softening. Year-to-date sales, which had been positive through March, turned negative by the end of April. Despite that, the single family home segment remains fundamentally strong due to its limited inventory and fast-paced sales.
The Takeaway
The Kailua Kona market experienced a slowdown in April, but not a setback. Buyers remain cautious, especially in the condo segment, while sellers benefit from low inventory in the single family home market. As national sentiment improves, the Big Island market may be poised for a rebound—especially for well-positioned, competitively priced properties.
If you’re considering buying or selling in the Kona area, now is the time to align your strategy with current trends and make informed decisions.