By Kai Ioh and KE TEAM Hawaii
Kai Ioh is a luxury real estate advisor based in Kona, Hawai‘i, specializing in second home, resort, and ultra-high-net-worth markets across the Big Island.
September 2026
Key Takeaways
A Kona real estate price reduction needs to change how buyers perceive value, not simply lower the asking price.
According to MLS data, buyers have typically negotiated about 3% below the final asking price this year, which helps explain why reductions of only 2% or 3% may have limited impact.
Properties that reduced their price and subsequently went pending had a typical reduction of approximately 8.2%, compared with about 5% for reduced listings that remain active.
Single-family homes and condos are behaving differently. Many correctly positioned single-family homes are going pending without reductions, while price reductions have become much more common in the condo market.
A price reduction is not simply about lowering a number. In the Big Island market, particularly Kona and the broader west-side market toward the Kohala Coast, the more important issue is whether the new price meaningfully changes how buyers compare a property with its competition.
How much to reduce is one of the more difficult conversations we have with sellers because there is no single answer that works for every property. Emil and I look closely at showing activity, competing inventory, days on market, condition, location and, of course, price.
But there is one thing we generally agree on: if you are going to reduce the price, the reduction needs to be meaningful.
A 2% or 3% reduction may sound like a lot of money, especially on a luxury property. In many cases, however, it may not significantly change how buyers see the home.
Buyers Already Expect Some Negotiation
This year, the average difference between the final asking price and sale price in Kona has been approximately 3% for both single-family homes and condos.
That is important.
Buyers are looking at the same market data we are. They generally understand that there may already be some room to negotiate from the asking price once you pass the 30-day mark.
If a seller reduces a $2 million property by 2%, or $40,000, a buyer may not view that as a meaningful change. They may simply think, “I could probably have negotiated that anyway.”
This is why I generally do not believe reductions of less than 3% move the needle.
A price reduction needs to do more than lower the number. It needs to change the buyer’s perception of value.
Current Kona Data Supports a Larger Adjustment
Our latest Kona market data reinforces something Emil and I have observed in practice.
Among properties that reduced their price and subsequently went pending, the typical reduction was approximately 8.2%.
Meanwhile, active listings that have declined but are still on the market have declined by only around 5%.
That difference caught our attention.
It does not mean an 8% reduction automatically produces a buyer. Every property is different, and showing activity matters. But the pattern suggests that simply reducing the price is not necessarily enough.
The size of the adjustment matters.
Our general rule of thumb is around 7% for a meaningful price correction.
Single-Family Homes Show the Value of Correct Pricing
Kona single-family homes tell an especially interesting story.
Overall:
46.4% of active single-family homes have had a price reduction
Only 21.7% of pending homes have had a price reduction
The $500,000 to $999,999 range is even more striking:
48% of active listings have reduced
Only 5% of pending listings have reduced
Only one of the 20 pending homes in this price range had reduced its price.
To me, the lesson is fairly clear. There are still buyers.
Homes that enter the market positioned correctly can attract them without chasing the market later.
The best price reduction is the one you never need to make.
Kona Condos Are a Different Market
Condos are more challenging right now.
The percentage of listings with price reductions is remarkably similar across active, pending and sold properties:
Active condos: 44.7%
Pending condos: 40.0%
Sold condos: 44.0%
Price reductions have become a normal part of the condo market. But market time tells us something more.
Pending condos that had reduced their price spent a median 147 days on market, compared with only 44 days for pending condos without a reduction.
Buyers are absorbing the well-positioned inventory first. Properties that miss the market initially can still sell, but they often require considerably more time and eventually a meaningful adjustment. Also, many buyers wait for a price reduction rather than negotiate hard.
Kona single-family home inventory is around 4.5 months, which is a fairly balanced market. Condo inventory is approximately 9 months, clearly in buyer’s market territory.
Pricing a condo correctly in this environment is difficult. We have far fewer buyers, and even aggressive pricing may not always be enough.
Price is certainly not the only differentiator. View, condition, location, HOA fees, rental potential and competing inventory all matter.
But price is usually the most important one.
Showing Activity Helps Define the Price Gap
There is no perfect formula for a price reduction, but showing activity gives us valuable feedback.
Little or No Showing Activity
If a property is receiving almost no showings, the market may be telling us that it is approximately 10% above where buyers see the value.
That does not mean every listing with limited activity automatically needs a 10% reduction. Unique properties and luxury homes can require more time.
But a lack of buyer activity is an important signal.
Showings Without Offers
If buyers are coming through the property but nobody is writing an offer, we may be closer to market value.
In many cases, however, the property may still be at least 5% too high.
The listing is generating enough interest to get buyers through the door, but the value proposition may not be strong enough compared with competing properties.
A Meaningful Correction Around 7%
If Emil and I decide that a meaningful price correction is appropriate, we generally recommend considering approximately 7%.
Part of the reasoning is simple.
Buyers already expect around 3% through normal negotiation. A 2% or 3% reduction often does not create a new value proposition.
Seven percent begins to reposition the property relative to its competition. And we negotiate to stay at that reduced price, avoiding further price cuts.
That is usually the real purpose of a price reduction.
Larger Reductions Can Reset Buyer Perception
Sometimes a listing has been on the market long enough that the issue is no longer simply the asking price.
The property may have become stale in the eyes of buyers.
In that situation, a 10% to 15% reduction may make more sense than a series of small reductions.
Several small adjustments can lower the asking price without attracting a meaningfully different group of buyers. One substantial correction can give buyers and agents a reason to look at the property again.
This is particularly relevant in slower segments of the Kona market, where buyers have more choices and less reason to compromise.
Listening to What the Market Is Telling Us
The first few weeks remain our best opportunity to capture buyer attention.
That does not mean we should automatically reduce a property because it has not sold immediately. Some unique homes simply need more time, particularly in the luxury market.
But we need to watch the signals carefully.
Showing activity, second showings, competing properties and offers below asking all tell us something about where buyers see value.
Sometimes the correct decision is to hold the price.
Sometimes it is a 5% adjustment.
Sometimes we need 10% or more.
But if we are going to reduce, I would rather make one meaningful adjustment than several small reductions that buyers barely notice.
In today’s Kona market, particularly for condos, pricing is not simply about choosing a number. It is about understanding where the property fits among the competition and positioning it so buyers see the value.
Kai and Emil - KE TEAM HAWAII
Frequently Asked Questions
How much should you reduce the price of a home in Kona?
There is no single percentage that works for every property. Showing activity, competing inventory, condition, location and days on market all matter. When Emil and I determine that a meaningful correction is appropriate, we generally consider approximately 7%, although some situations may call for 5%, 10% or more.
Is a 2% or 3% price reduction enough in Kona?
Often, probably not. Buyers have been negotiating approximately 3% from the final asking price this year. Because buyers may already expect that amount of negotiating room, a 2% or 3% reduction may not meaningfully change their perception of the property’s value.
Why does a 7% price reduction matter?
A reduction of approximately 7% begins to reposition a property relative to competing listings. Buyers may already expect around 3% through normal negotiation, so a small reduction may not create a new value proposition. The goal is not simply to lower the price. It is to change how buyers see the value.
What does it mean if a Kona listing is getting no showings?
Very limited showing activity may indicate that buyers see the property as approximately 10% above its perceived market value. This is not a fixed formula, and other factors can affect activity, but a lack of showings is an important signal that the property may not be positioned correctly.
What do showings but no offers usually mean?
If buyers are touring the property but not making offers, the pricing may be closer to the market, but there can still be a meaningful gap. In our experience, the property may still be at least 5% above where buyers perceive the value.
Why are Kona condos more difficult to price right now?
Condo inventory is approximately nine months, compared with about 4.5 months for single-family homes. Price reductions are also common among active, pending and sold condos. With fewer buyers relative to inventory, condo sellers face more competition.
Is it better to make one large price reduction or several small reductions?
If a meaningful correction is needed, I generally prefer one noticeable adjustment over several small reductions that buyers barely notice. A larger correction can reposition the property against its competition and, in some cases, reset buyer perception of a listing that has become stale.
Can a correctly priced Kona home sell without a price reduction?
Yes. Nearly 76% of pending Kona single-family homes in the data discussed here remain at their original asking price. This suggests there are still buyers for homes that enter the market positioned correctly. The best price reduction is the one you never need to make.
