Kailua-Kona Real Estate Market Trends – February 2025
The Kailua-Kona real estate market is shifting as we enter 2025, with inventory rising and economic factors influencing buyer demand. Here’s a breakdown of key market trends:
🏡 Single-Family Home Market
- The number of active listings increased +24% in February after a +21% rise in January.
- Months of inventory reached 4.0 months, a key level that was last exceeded in March 2024 before falling to 2.7 months in Fall 2024.
- Pending sales are down -39.6% YoY, suggesting a slowdown in buyer activity.
With supply increasing, it will be interesting to see if buyers gain more negotiation power in 2025. 4.0 monthly supply indicates neutral market.
🏢 Condominium Market: Insurance Crisis Impact
The condo market is experiencing challenges, mainly due to the ongoing insurance crisis, which has made securing financing and affordability more difficult.
- 7.7 months of inventory, the highest since 2019 (compared to 6.7 months at peak COVID).
- Days on Market (DOM) increased to 57 days (+50% YoY), reflecting a slower market.
- $400K-$750K condos are struggling with a 15:1 active-to-pending ratio, while luxury condos ($750k+) are more resilient with a 3:1 ratio.
While buyers in the condo market may find more options, financing challenges due to rising insurance costs remain a key factor to watch.
What’s Next?
With inventory rising across both single-family homes and condos, 2025 could present new opportunities for buyers. If you’re considering buying or selling in Kona, now is the time to strategize.
Big Island Resorts
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