Big Island Hawai‘i Real Estate Market Update – June 2026

By Kai Ioh and KE TEAM Hawaii

Author Bio: Kai Ioh and Emil Knysh are luxury real estate advisors based in Kona, Hawai‘i, specializing in second home, resort, and ultra-high-net-worth markets across the Big Island.

Key Takeaways

• The Kona single-family home market continues moving toward a more balanced environment as inventory increases and buyers become more selective.
• Condo inventory remains elevated, creating favorable conditions for buyers despite improving pending sales activity.
• Inventory remains well below pre-pandemic norms, helping support overall home values despite softer demand.
• Market performance varies significantly by price range, with some luxury and upper-mid-market segments outperforming others.
• Resort markets remain relatively stable, while private club communities continue to benefit from limited supply.

Kona Single-Family Home Market: Is the Market Becoming More Balanced?

The Kailua-Kona single-family home market continues its gradual transition toward a more balanced environment.

The year-to-date median home price stands at $1.25 million, down 3.7% from the same period last year, bringing pricing back to levels seen at the end of 2025. The median sold price per square foot declined 5.4% year-over-year. These changes suggest buyers are becoming increasingly focused on value and property-specific characteristics rather than broad market momentum.

In the context of Hawai‘i, this does not necessarily indicate a weak market. Instead, it reflects a market that is becoming more selective after several years of exceptionally strong appreciation.

How Much Inventory Is Available?

Single-family home inventory in Kona is still on an increasing trend.

The number of active listings, which went down last month, increased 12% year-over-year and 8% month-over-month in June, bringing total inventory to 160 homes. Months of supply now stand at 5.7 months.

While this places Kona SFH market near the upper end of what is typically considered a balanced market, inventory remains below historical levels.

For perspective:

• June 2019: 212 active listings
• Post-2008 housing crisis: nearly 450 active listings
• June 2026: 160 active listings

Current inventory remains roughly 75% of June 2019 levels.

What Is Demand Doing?

Demand remains healthy but has softened in June.

Pending sales increased 17% year-over-year but declined approximately 10% from May to June. Closed sales are down 6.7% year-over-year.

The active-to-pending ratio currently sits at approximately 2.6-to-1 compared to slightly above 2-to-1 in June 2019.

Months of supply has increased to roughly 5.7 months compared to 4.5 months in June 2019.

Taken together, these metrics indicate that homes are still selling, but buyers have become more deliberate and absorption is occurring at a slower pace.

Which Price Segments Are Performing Best?

Market conditions vary considerably by price point.

Under $1 Million

This segment continues to show solid demand.

Inventory remains relatively limited and pending sales activity has remained stable. Affordability remains an important driver of demand.

$1 Million to $1.25 Million

This segment experienced a notable increase in inventory alongside fewer pending sales.

Sellers in this range are facing increased competition and may need to be more strategic with pricing and presentation.

$1.25 Million to $1.5 Million

This remains one of the strongest-performing segments in the market.

Inventory declined while pending sales increased, indicating healthy buyer activity despite broader market moderation.

Above $2 Million

Luxury properties continue to move at a slower pace.

Inventory and pending sales showed relatively little change, reflecting a more selective luxury buyer pool and longer decision-making timelines.

Why Haven’t We Seen a Large Inventory Surge?

Many forecasts anticipated a significant increase in housing supply during 2025 and 2026.

That has not occurred.

While buyer demand today appears lower than 2019 levels, inventory remains constrained relative to historical norms. This supply limitation continues to provide support for home values and has prevented the market from becoming materially oversupplied.

Unlike many mainland markets, Kona’s housing supply remains structurally limited by geography, development constraints, and long-term ownership patterns.

Kona Condo Market: Why Are Buyers Gaining More Leverage?

The Kailua-Kona condominium market remains firmly in buyer-market territory.

The year-to-date median condo price declined to $570,000, down 14.3% year-over-year. Closed sales fell 13.1%.

Even with fewer listings than last year, pricing continues to face downward pressure as buyers gain negotiating leverage.

It is important to note that current pricing remains substantially above pre-pandemic levels. In February 2020, the median condo price was approximately $340,000.

How Much Condo Inventory Exists?

Months of supply currently stands at 6.9 months.

Active inventory increased approximately 7% month-over-month while median days on market remained elevated at 51 days.

For comparison, the single-family home market currently averages approximately 36 days on market.

The longer marketing period reflects slower buyer decision-making and greater property selection.

Are Buyers Still Active?

Demand signals remain mixed.

Pending sales increased 11.4% year-over-year and rose from 35 to 39 properties month-over-month, higher than 2024 and 2025 level.

This suggests buyers remain active despite affordability challenges and higher mortgage rates.

However, stronger pending activity has not yet translated into price stabilization.

Which Condo Segments Are Strongest?

$600,000 to $750,000

This segment now represents approximately one-quarter of all active inventory.

While pending sales improved modestly, supply continues to exceed demand.

$750,000 to $1 Million

This remains one of the most challenging segments.

With 25 active listings and only one pending sale, the imbalance between supply and demand is significant.

$1 Million to $2 Million

Higher-end condos showed meaningful improvement.

Pending sales increased from two to six properties while active inventory declined.

Above $2 Million

Luxury condos also demonstrated stronger activity.

Active inventory declined from eight to seven units while pending sales increased from zero to three properties.

How Are Mortgage Rates Affecting the Condo Market?

Financing continues to play an important role as the interest rates climb.  The average 30-year fixed mortgage rate is approximately 6.56% as of early June 2026. This is slightly higher than May levels.

Approximately 46% of condo purchases utilize financing. Among buyers purchasing below the median price point of $600,000, approximately 55% rely on mortgage financing.

As a result, this portion of the market remains more sensitive to interest rate fluctuations than the luxury segment, where cash purchases are more common.

Big Island Resort Market Update

The resort markets experienced relatively little change during June.

Kohala Coast resorts’ spring condo market (Waikoloa, Mauna Lani, and Mauna Kea) performed the worst over the last four years.

Historically, Big Island resort markets perform strongest during the peak winter season until June.

Higher interest rates may continue to place pressure on resort condominium demand, particularly among lower priced properties.

Private Club Communities Continue to Benefit From Scarcity

The strongest resort performance continues to occur within private club communities( Four Seasons Hualalai, Kukio and Kohanaiki) where inventory remains extremely limited.

At Four Seasons Hualālai, no listings are currently available.

Kohanaiki continues adding new inventory through ongoing development, which may create negotiation opportunities for buyers seeking entry into a private resort community.

Scarcity remains one of the defining characteristics of the private club markets.

For more detailed market data and analysis, please access our latest monthly data flipbook here. 

Kai Ioh, KE TEAM HAWAII

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Frequently Asked Questions

Is Kona currently a buyer’s market or seller’s market?

The single-family home market is approaching a balanced market, while the condo market remains more favorable for buyers due to elevated inventory levels.

Why are home prices holding up despite slower demand?

Inventory remains significantly below historical norms, which continues to support pricing even as buyer activity moderates.

Which Kona price range is performing best?

The $1.25 million to $1.5 million segment currently shows some of the strongest supply-demand balance.

Why are condo prices declining more than home prices?

Condo inventory is higher relative to demand, giving buyers greater negotiating leverage.

Are luxury buyers still active on the Big Island?

Yes, although luxury buyers are generally more selective and transaction timelines are longer than during the pandemic-era market.

How do current inventory levels compare to 2019?

Single-family home inventory remains approximately 25% below June 2019 levels.

Are mortgage rates affecting the market?

Mortgage rates continue to impact entry-level and mid-priced condo buyers more than luxury buyers, many of whom purchase with cash.

What is months of supply?

Months of supply measures how long it would take to sell all active inventory at the current pace of sales. Higher numbers generally favor buyers.

Why do resort markets perform best in winter?

Many second-home owners and visitors spend more time on the Big Island during the winter season, increasing buyer activity.

What distinguishes private resort communities from the broader market?

Private club communities typically have much more limited inventory, creating stronger scarcity and often greater pricing stability.