Big Island, Hawaii Real Estate Market Trends

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Q4

2020

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Our Big Island Hawaii real estate market data is updated quarterly to aid in your real estate forecasts. Historical Hawaii real estate data and trends are included below the latest update. We break down our data by region, but cover the residential areas in Hawaii including Hilo, Kailua-Kona, and Waimea (Kamuela).

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Q4 2020 Gardner Report

Big Island, Hawaii
Real Estate Market Update

by Matthew Gardner

Below is the latest Big Island, Hawaii housing market trends analysis. Additional links:

Historical Big Island HI Data
Maui Data
Southern California Data
Other Regional Data

 

The following analysis of the Big Island real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

 

Regional Economic Overview

The impact of COVID-19 on the Big Island’s economy remains significant. That said, jobs started to return after the spike in new infections in September. The latest available employment data (November) showed that the labor market has recovered 14,650 of the jobs that were shed and that employment is now only 6,850 jobs lower than in February of 2020. The unemployment rate on the Island continues to improve but still stands at 9.8%. For perspective, the rate in November of 2019 was only 3.3%. All of the islands continue to suffer from slow economic growth, but I remain hopeful that jobs will continue to return—assuming new infection rates do not go up again.

big island of hawaii Home Sales

❱ In the fourth quarter of 2020, 1,083 homes sold on the Big Island. This was an increase of 30.5% compared to the final quarter of 2019 and a significant 21.7% higher than in the third quarter of 2020.

❱ Sales were static in Kau but higher in all other markets. North Kona and North Hilo saw significant increases in sales. All but two markets saw sales rise by double digits.

❱ The growth in sales came even though inventory levels were 33.5% lower year-over-year. The average number of homes for sale in the quarter was also down 14.4% from the third quarter of 2020.

❱ Pending home sales fell .9% compared to the third quarter of 2020, but this can most easily be attributed to a lack of supply of homes to buy—not a lack of demand.

A bar graph showing the annual change in home sales for various areas on the Big Island, Hawaii.

big island of hawaii Home Prices

A map showing the real estate market percentage changes in various areas of the Big Island, Hawaii.

❱ The average home price on the Island rose an impressive 33.9% year-over-year to $775,902. Prices were also 23.2% higher than in the third quarter of 2020.

❱ Affordability continues to be an issue, but competitive mortgage rates and the desire for vacation homes kept demand from mainland buyers very robust.

❱ The substantial increase in average sale prices was driven by significant price growth in North and South Kohala, but all markets except Hamakua saw double-digit price growth compared to a year ago.

❱ Given the events of 2020, the housing market has recovered very admirably.

A bar graph showing the annual change in home sale prices for various areas on the Big Island, Hawaii.

Days on Market

❱ The average time it took to sell a home on the Big Island dropped one day compared to the final quarter of 2019.

❱ The amount of time it took to sell a home dropped in North & South Kohala, North Kona, Kau, and South Hilo, but rose in the other four markets.

❱ It took an average of 102 days to sell a home in the fourth quarter, with the fastest sales occurring in South Hilo and the slowest in North Hilo.

❱ It took four fewer days to sell a home in the fourth quarter of 2020 than in the third.

A bar graph showing the average days on market for homes in various areas of the Big Island, Hawaii.

Conclusions

A speedometer graph indicating a seller's market on the Big Island, Hawaii.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Even though the economy and job market are still suffering from the fallout of COVID-19, the housing market is recovering nicely.

Demand appears to be in place, but buyers who want to get into the market are still finding limited choices, which has allowed prices to continue to rise at very significant rates. Even though I anticipate mortgage rates will not drop much further, demand is likely to continue to be strong. Therefore, I am moving the needle back a bit more in favor of home sellers.

 

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

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Major Big Island areas covered in this report:

Hilo

Kailua

Hawi

Paradise Park

Kalaoa

Waimea (Kamuela)

Holualoa

Waikoloa Village

Ocean View

Kahaluu-Keauhou

Ainaloa

Beaches

Mountain View

Captain Cook

Big Island disctricts covered in this report:

Kau

Hamakua

North Hilo

North Kohala

North Kona

Puna

South Hilo

South Kohala

South Kona

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Gardner Report Archive

Big Island, Hawaii
Historical Reports

2020
Market Trends report Big Island Hawaii Q1 2020

Q1 2020
POST | (PDF)

                    Big Island of Hawaii Real Estate Market Update

Q2 2020
POST | (PDF)

Market Trends Report Big Island Hawaii Q3 2020. Click to view full report.

Q3 2020
POST | (PDF)

Q4 2020 Big Island, Hawaii Market Trends

Q4 2020
POST | (PDF)

2019
                    Big Island of Hawaii Real Estate Market Update

Q1 2019
POST | (PDF)

Q2 2019
POST | (PDF)

                    Big Island of Hawaii Real Estate Market Update

Q3 2019
POST | (PDF)

                    Big Island of Hawaii Real Estate Market Update

Q4 2019
POST | (PDF)

2018
                    Big Island of Hawaii Real Estate Market Update

Q4 2018
POST

These Hawaii real estate reports, data, forecasts, and market trends are provided for informational use. If you find it useful, please properly attribute this resource with a link. The regions of Hawaii are also referred to as the Big Island, Island of Hawaii, Hawaii Island, Island of Hawai'i, Kona, Kohala, Hilo, Puna, Hamakua Coast, Kamuela, and Kau.