Big Island Real Estate Update: Strong Start to 2025 with Rising Prices and Inventory
Jan Nores, RS- Apr 29
- 6 min read
The first quarter of 2025 kicked off with strong momentum for the Big Island real estate market. According to the latest Hawaii Life Q1 Real Estate Market Report, we saw not only an increase in median sold prices across all sectors but also a healthy rise in inventory. As a realtor who has worked through many market cycles here in Hawaii, I can say this is an exciting time for both buyers and sellers. Let's dive into the numbers and explore what this means for our Big Island real estate market.
Report Highlights
Current inventory is up 30.3% YoY.
Sold listings are up 1.0% YoY.
The median sold price is up 16.5% YoY.
The price per square foot is up 3.6% YoY.
Download a full copy of the report here:
Residential 3m+ Luxury Market Overview
The $3M+ luxury market saw a lift in median sold price. Inventory is up, presenting buyers with new options.
Hawai'i Island's luxury market, specifically the $3 million and above segment, enjoyed an active first quarter. The median sold price in this sector rose compared to the same time last year, reflecting the continued demand for premium properties.
What stands out is that even though inventory increased, the number of sales matched last year's pace, and properties moved even faster. This suggests that serious buyers are active and willing to move quickly when they find the right home. New inventory has provided buyers with fresh options, allowing for a more dynamic and competitive luxury market.
West Hawaii continues to be a strong driver for luxury real estate, offering world-class resorts, private communities, and oceanfront properties that are simply unmatched. It’s no surprise that buyers seeking the ultimate Hawaiian lifestyle are finding their dream homes here.
Residential Submarket Snapshot
Breaking down the data further, each submarket across Hawai'i Island saw unique dynamics, but the overarching theme remains the same: growth and opportunity.
West Hawai'i: Continues to lead with higher median prices and stronger demand, especially for luxury and resort-style properties.
East Hawai'i: Gains ground with rising price per square foot and a strong market for move-in-ready homes.
North Kohala & Hamakua: Offer attractive options for buyers seeking more acreage and rural living, with competitive pricing relative to West Hawaii.
Residential Market Snapshot
Hawai‘i Island had a positive start to the year with a lift in median sold price and sold listings.
The broader residential market on Hawai‘i Island also showed positive signs across the board in Q1 2025. Median sold prices climbed 16.5% year-over-year (YoY), while price per square foot (ppsf) also increased. This hints at a strong preference among buyers for move-in-ready homes, a trend we’ve been observing for some time now.
Inventory is up YoY, and the number of sold listings also increased. Together, these factors indicate a balanced and active market where demand continues to meet new supply. It is particularly encouraging to see healthy growth at a time when other parts of the country are experiencing more tempered real estate activity.
Residential Market Overview
Median Sold Price
Despite more inventory hitting the market, median sold prices rose significantly. Correct pricing remains crucial — sellers who align their properties with market realities are rewarded with quicker sales and strong closing prices. As usual, West Hawai'i is leading the way, boosting the overall figures for the island.
Average Price Per Square Foot
Price per square foot rose YoY, with the East side of the island making notable contributions to this trend. Buyers today clearly value homes that are ready to move into without requiring significant updates. If you're a seller, investing in strategic updates to make your home move-in ready can make a big difference in today's market.
Inventory
An increase in inventory is a healthy sign, reflecting the confidence of sellers and providing buyers with more choices. Particularly notable is the growth in workforce housing development on the West side. This much-needed segment not only helps local families but also contributes to the broader real estate ecosystem, creating more movement across all price points.
Days on Market (DOM)
Days on Market is higher YoY, which can be attributed to several factors, including buyer price sensitivity driven by interest rates and potential policy changes. Homes that are priced too ambitiously are sitting longer. Pricing strategically for the current market is absolutely vital to avoid extended listing periods.
Months of Inventory
"Months of inventory is higher than this time last year. This increase in months of inventory could possibly indicate a small shift towards a more balanced market, though it’s too early to tell."
10 Year History
"We can see the high median sold price increase across Hawai‘i Island over the past decade. The island’s population has grown since 2015, driven by factors like interisland relocation and remote work. This has helped fuel the increase in median sold price and ppsf."
Sales by Property Type
One of the most interesting developments this quarter is the 3% YoY increase in condo sales. This is a shift from prior quarters, where condo sales were more stagnant or even declining.
What's causing this? For one, many condo complexes have significantly increased their HOA fees. These increases are largely due to pressures from insurance companies demanding that HOAs maintain higher reserves. For some owners, the increased costs have been enough to prompt a decision to sell.
While this presents challenges for some, it's a golden opportunity for buyers. Increased condo inventory combined with motivated sellers creates favorable conditions for negotiation. If you’ve been considering investing in a Big Island condo, now is an excellent time.
Be sure to check out my latest condo listing in Waikoloa Village — the sellers are offering a $3,000 credit towards closing costs!
Looking Forward
The numbers point to continued demand for Hawai’i Island real estate heading into the next quarter.
As we move into Q2 2025, all signs point toward continued demand, especially for homes that are priced right. Interest rates and policy changes may have some influence on buyer behavior, but overall, Hawai'i Island's real estate market remains robust and approachable compared to the other islands.
Buyers continue to find better value here, while sellers benefit from the steady interest in our unique lifestyle and properties. Correct pricing, strong marketing strategies, and strategic property improvements will remain key to success for sellers.
What I make out of this data
This latest Hawaii Life report simply confirms what I’ve been sharing with my clients for months: pricing correctly is crucial to achieving a fast and profitable sale.
Sellers who invest wisely in pre-listing improvements and trust in a proven marketing strategy are finding success even as buyers become more price-sensitive. Interest rates and potential shifts in the national economy are factors to watch, but the fundamentals here on the Big Island remain strong.
Moreover, the steady rise in median sold prices and price per square foot over the past 10 years shows the Big Island remains a prime location to live and invest. Buyers continue to prioritize properties that are move-in ready, and condo buyers in particular are finding new opportunities thanks to motivated sellers.
My Advice to Buyers
If you're thinking about buying, this is a great time to explore your options. With increased inventory across the board and motivated sellers in some segments, there are opportunities to find a property that meets your needs and negotiate favorable terms.
Particularly in the condo market, buyers who are prepared can secure excellent deals — and potentially benefit from seller credits, price reductions, or other concessions.
If you’re financing your purchase, lock in your mortgage pre-approval so you’re ready to act quickly when you find the right property. Move-in ready homes continue to move fastest, so being prepared will give you a competitive edge.
My Advice to Sellers
Sellers, this market offers great opportunities — but only if your property is priced right from the start. Today's buyers are savvy. They understand the value and have access to a wealth of information.
Invest in necessary repairs and consider light cosmetic upgrades to make your home shine. Correctly pricing your property based on a professional market analysis will help you sell faster and for the best possible price.
Work with an experienced agent who understands the local market dynamics and can guide you through a strategic marketing plan. Quality photos, targeted online exposure, and strong network connections make a big difference in getting your home sold.
Final Thoughts
Hawai'i Island's real estate market had a strong start to 2025. Increased median sold prices, higher price per square foot, more inventory, and consistent buyer demand create an optimistic outlook for the months ahead.
While national trends and interest rates will always influence buyer behavior, the Big Island's approachable pricing, beautiful lifestyle, and growing opportunities continue to attract people from all over the world.
Whether you’re thinking of buying or selling, working with a knowledgeable, experienced local agent is more important than ever. I’m here to help you navigate this exciting market with expertise, honesty, and Aloha.
If you're curious about your home's current value, interested in buying your slice of paradise, or just want to learn more about the market, reach out to me anytime. Let's make your Big Island real estate dreams a reality!
Download the full report below.
Ta Da!
Aloha,
Jan
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