The Kohala Coast is our Live, Work, and Play - Destination

While most buyers and investors believe that the best time to buy real estate is in the summer here in Hawaii, we actually remind them that this is a time when some of the most lucrative deals are made and to be had. Others also think that it is quiet here this time of the year. There is some truth to that fact and most visitors from the mainland spend time here in the fall and winter. However, those are also the owners of properties who tend to list theirs for sale when they leave in the Spring. That being said, we have taken the time to analyze the pending and closed sales so for for this year and it looks like June and July this summer of 2021 has been super steadfast.

This year has been different. Covid 19 has completely changed everything. Forever...

Market prices during the first year of the pandemic dropped and then leveled off. The good news now for sellers is that the market continues to be strong with the majority of luxury Kohala Coast neighborhoods earning and setting new sales prices at closing. For example, within the gates of 49 Black Sand Beach there have been listings that simply had 200 plus days on the market. Most if not all of those have sold or are currently pending. In Hualalai Resort there simply is just no inventory. We have the buyers calling and emailing but there are very few sellers. The Good news is that in the ultra high end market when you see a stunning listing become available, you need really need to go after it.

In June alone there were 13 residential listings that closed in the Big Island MLS for over $5 Million. We also have noticed this month already in July that there is a market shift taking place. Some people take this term as a market correction but that is not necessarily the case. Most indicators start with conversations. Buyers and Sellers are starting to sound a bit differently than they did 3 months ago. It will be very interesting to see what happens as we head into the Fall and Winter months. Although new market prices are still being set, it certainly is a market where a shift is taking place. Multiple offers are still occurring and the market seems a little high and we will see what happens.

Hawaii, especially on the Big Island presents some of the most unique possibilities in real estate investments available. The ultra luxury market especially on the Kohala Coast is a very unique destination and oceanfront property is scarce. Nationally, the current inventory levels are at around 30 days. A more neutral market would be 3 months or more of supply. In addition, from an economy standpoint a balanced market may be headed in our direction. There are obviously many other factors and variables are involved especially when it comes to second home locations such as the Hawaiian Islands. In summary, a peak may be prevalent according to sales data accumulated by NAR - National Association of Realtors.

Closed sales chart depicting all Big Island MLS residential listings over $5 Million for June and July 2021:

Above; information provided by Hawaii Information Service - the Big Island MLS.

One of our Most Distinguished Listings Ever Listed on the The Big Island of Hawaii

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Contributed by Paul Adams - Broker in Charge, Luxury Big Island