Aloha! This is Chiaki Yamada with KW-Big Island. As we welcome the arrival of spring, the State of Hawaii is currently recovering from the damage inflicted by a “Kona Low,” the most impactful storm experienced in the last 50 years. The storm's aftermath highlights the importance of being aware of the island’s flood zones. If you'd like to check whether your property is in a flood zone, please visit this site and enter your address: Flood Zone Information.

The Kona real estate market continues to move slower than anticipated, especially for what is typically considered peak season in Hawai`i. However, with recent drops in interest rates, we are seeing more activity among local buyers, particularly in the residential sector for properties priced under $2 million. Conversely, the luxury market for homes priced above $2.5 million is slowing due to decreased demand from off the island. This winter, more residents are either selling or buying to accommodate relocations or to upgrade or downsize.

While some listings have been withdrawn or expired without securing buyers, there is currently about six months of inventory for both residential properties and condos, giving buyers more options. At the same time, although some sellers remain firm on pricing, it is essential to pair desirable features with competitive pricing to attract interest, as not all properties are finding buyers in the current market.

In the residential sector of Kona, the average closing price in the last 30 days has reached 91% of the original asking price and approximately 95% of reduced asking prices. This slight increase in the discount rate suggests a gradual decline in pricing for buyers.

As of March 16, 2026, here’s an overview of the Kona residential market, including active listings, properties under contract, the pending ratio, and other market insights. Please keep in mind that market conditions can vary significantly by price range, and it is currently taking longer to secure buyers, with the average days on the market now at 107 days.

In Kona’s condo market, inventory remains high while buying activity is low but steady. The highest inventory levels are found in properties priced between $500,000 and $1 million. Like the residential market, ocean view condos offered at competitive prices are attracting buyers more quickly. Presently, the Kona condo market is classified as a "buyer's market," with average days on the market reaching 120. Over the past 30 days, properties have closed at an average price of 93% of the original asking price and 96% of the revised asking price. The smaller discount rate compared to residential properties indicates that prices are stabilizing following the recent market shift.

For those looking to invest in the Kona condo market, now appears to be an opportune time, with increased activity and potential for favorable deals.
I am here to provide you with a detailed market analysis for your neighborhood. If you or anyone you know may be thinking of buying, selling or both, I would be happy to be of service!