The Year In a Flash:
October 2025 Real Estate Update
by Bherin Brown
As the years go by in a flash the older we get, it’s always interesting to look back at the data from the year before. For most of you that regularly follow the market, you are aware that lenders have promised lower interest rates for a while now. Well, they are continuing to come down yet not quite fast enough as some of us would like. Of course some may say that lowering the rates will stimulate more growth in the economy and this may be true, however I am ok with this slow rate decline. One of the reasons we got into this big inflation mess in the first place, accelerated by Covid, was in my opinion because the rates went too low for too long. Plus, a lot of other factors which I won’t get into at the moment!
This year we have continued to see prices level out and days on market go up. We are sitting at about 8% less activity in overall home sales, condos and land year to date in North Kona and South Kohala regions. Median single family home sale prices in the last year have gone down from $1,295,000 to $1,265,000 in North Kona and $1,030,000 to $980,000 in South Kohala. Land sale prices have also gone down about 10% in the last year in the combined regions of North Kona and South Kohala. But by far the most interesting stand out statistic to me is the condo sector. Looking at the year to date sales from last year to this year, condo sales prices have dropped about 10% in North Kona and South Kohala combined and median days on market have increased over 2x to 56 days on market. It has become evident that increased insurance premiums and maintenance fees due to the fires in Maui and California and Hurricanes in Florida have slowed condo sales. Also interestingly enough, if you look back over the last handful of years the condo price sector had increased in appreciation the most out of all aspects of real estate. From 2020-2022 the median condo sales price in North Kona and South Kohala rose 51% from $450,000 to $679,000. Then again in 2024 the median price rose to $755,000. That’s a whopping 68 percent from 2020 to 2024!!! This can be the POWER of real estate. Now, if you bought in 2020 or in the years before and sold in 2024 you are looking like a genius so good for you, but most people won’t be able to time the market that well!
If you are not in it for the long hall, as I am a strong believer that over time prices will continue to go up and I will continue to standby that idea, the future price of condos may continue to decline for the time being and it may be a good time to sell and get out now. However, if rates come down to that 5 % baseline that most buyers and sellers say would take them off the sidelines to make a move (think possibly spring) things in the condo sector could heat up again as more buyers come out to play and insurance premiums are renegotiated. In fact, if you are looking for a primary residence, I can connect you with a lender today that with great credit can find you a rate in the 5’s! If you are not sure which direction to go, feel free to reach out to me and we can discuss your real estate strategy at 808-818-8127 or livealoha@kw.com. Hope you’re Living Aloha Everyday and we’ll talk soon.
