As we move through 2025, the Kailua-Kona real estate market continues to show a mix of stability and shifting trends. While the single-family home market remains balanced, the condo market is showing signs of slowing, particularly in resort areas. Here’s a breakdown of what’s happening in the local market and what it means for buyers and sellers.
🏡 Single-Family Homes: Steady with Slower Buyer Activity
The single-family home market in Kailua-Kona remains relatively stable, with the median price at $1.3M—a slight 0.8% decline YoY. Closed sales are up slightly, but pending sales are down 23% YTD, indicating a slower pace of transactions.
- Inventory remains at 4 months’ supply, meaning there is still a balance between buyers and sellers.
- The Days on Market decreased to 18 days, showing that well-priced homes are still moving quickly.
- While buyer activity has slowed, demand remains steady, and the rate of new listings has increased by only 1.7% YTD, preventing an oversupply.
🏢 Condo Market: More Inventory & Buyer Caution
The Kona condo market is seeing a notable slowdown, with inventory levels exceeding 8 months’ supply—the highest in years. While YTD sales are up 58%, the growing number of listings is giving buyers more choices and putting pressure on sellers to price competitively.
- Pending sales are up MoM and YoY, but the overall demand is softer than the surge seen in 2024.
- Days on Market have jumped 200% to 42 days, indicating that condos are taking much longer to sell.
- Many buyers are wary of rising AOAO maintenance fees and potential special assessments, especially in resort communities.
- Condo associations are hoping for lower master insurance premiums in 2025, but final pricing won’t be clear until early summer.
Big Island Resorts
📉 Mortgage Rates & Affordability
With 30-year mortgage rates holding at 6.5%, affordability remains a key factor for buyers. Higher borrowing costs are making some buyers more cautious, especially in the higher-priced condo segment, where ongoing fees and assessments add to monthly expenses.
📊 What This Means for Buyers & Sellers
- For buyers: The single-family home market remains competitive, with homes selling quickly at the right price. In the condo market, buyers have more negotiating power due to rising inventory.
- For sellers: Single-family homeowners should expect steady demand but must price strategically as buyers become more selective. Condo sellers should be prepared for longer market times and consider pricing adjustments to attract offers.
💡 The Bottom Line
The Kailua-Kona real estate market is evolving, with single-family homes maintaining balance while condos experience a shift toward a buyer’s market. With inventory growing in the condo sector and mortgage rates at 6.5%, buyers and sellers alike need to stay informed and adjust their strategiesaccordingly.
Thinking of buying or selling? Contact us today to navigate these changing market conditions with confidence! 📩📞