Neighbor island housing markets mixed in September

Neighbor island housing markets fluctuated greatly in September with single-digit, double-digit and triple-digit changes to median prices and sale volumes.

Recent reports from sale agent trade associations on Maui, Hawaii island and Kauai mostly show double­-digit gains, though a few market segments diverged from that and included a slight dip in one instance.

The biggest variation occurred in Kauai’s condominium market where the number of sales nearly doubled to 55 in September from 30 in the same month last year, while the median sale price slipped 2% to $588,000 from $597,500.

In Kauai’s single-family home market, sale volume rose 31% to 64 last month from 49 a year earlier, while the median price jumped 45% to $1,172,500 from $810,000.

Maui’s condo market had the overall strongest performance, as the number of sales surged 112% to 182 last month from 86 a year earlier and the median price jumped 47% to $729,125 from $497,500.

In Maui’s single-family home market, the number of sales edged up 6% to 114 in September from 108 a year earlier while the median price rose 27% to $996,500 from $728,500.

Single-family home sale volume also rose only a little on Hawaii island where there were 264 sales last month, up 4% from 253 a year earlier. The median price for these homes rose 18% to $497,000 from $420,000 in the same period.

There were 80 condo sales on Hawaii island last month, up 23% from 65 a year earlier, and the median price rose 19% to $488,750 from $410,000.

Though some market segments appear to be settling back to moderate historical sale volume growth, the higher demand in other segments can be attributed to a drop-off in activity last year followed by a release of pent-up demand.

Also, strong mainland visitor arrivals this year up until a recent slowdown have contributed to some sales along with new residents taking advantage of remote working opportunities created by the coronavirus pandemic.

“COVID-19 proved that a home could be a viable alternative working environment, including a home in Hawaii,” the University of Hawaii Economic Research Organization said in a September report.

UHERO’s report said mainland residents represented nearly a quarter of all Hawaii home purchasers in the first half of this year, compared with one-fifth in 2019, though the number of international buyers is down because of travel restrictions.

Sale data for neighbor island homes includes new homes in addition to previously owned homes.

The median price is a point at which half the sales were for a higher price and half for a lower price, and this measure can be swayed by the size, quality, age and location of homes being sold especially in neighbor island markets where a lot of vacation homes are part of the landscape.

For instance, condos in the South Kohala resort area on Hawaii island sold for a median $805,000 last month, up from $545,000 a year earlier. In South Hilo where more primary resident housing exists, condos sold for a median $140,000 last month, down from $217,500 a year earlier.

Reports for Hawaii island and Kauai were compiled by Hawaii Information Service using data from the Hawaii Island Realtors and the Kauai Board of Realtors trade associations. The Realtors Association of Maui produced its own data for Maui County, which includes a few sales on Lanai and Molokai.