No one can deny that the condo market in West Hawaii has been soft. The HOA fees went up last May when it was announced that the insurance rates would be driving up the cost for insurance after the Lahaina Fire and a variety of wild fires and hurricanes on the mainland. Then the interest rates have not declined as hoped for, leaving buyers waiting on the sidelines and sellers who saw a drop in profit margins deciding to sell.

Condo Sales Volume Dropped 67% in May

It seemed to come to a head last month, in May, when sales volume for condos in North Kona dropped 67% year over year according to statistics from the Hawaii Information Service. We felt it, too, trying to sell a one bedroom condo for almost three months in Kailua Kona. Finally, a buyer was found and we closed escrow two weeks ago. We were clearly not alone.

Condo Sales Increased 44% in June

Sales volume dropped “only” 10% year over year in North Kona for June 2025 compared to last June and the sales price has declined 1.18% to $585,000 from $592,000 in June 2024. The number of condo sales in North Kona declined almost 30%, from 44 to 31 last month compared to an increase of 44% with 26 sales in June 2025 to 18 in 2024.

Good News- Lower HOA’s

Other good news in the condo market in Kailua Kona is Ali’i Lani condo complex announced a DECREASE in HOA fees as they received notice of a decrease in insurance premiums, giving residents there an average of $175 a month decline in their HOA fees starting August 1. This gives us all hope that the unprecedented boost in insurance premiums are settling out and will help owners, especially those on fixed incomes.

Buyers pressed the HOLD button in the Spring

Where is the fear and loathing then? Well, when we look at the over real estate market in West Hawaii, we can see that 2023 was the top of the market. The interest rates were favorable then, the insurance premiums had not yet been adjusted, and we had a bit more peace as a nation. Now, we are in a confluence of confusion, which has buyers pressing the HOLD button and sellers holding their 2023 prices, not wanting to lose the equity they gained during the run up in the market. (This holds true from some single family sellers, too).

With the data in from June, we can perhaps put the Xanax down. There may be movement in the market as we head through summer and into the fall.

We HAVE been getting more calls from buyers, who DO believe they can ask for discounts on homes that have been lingering on the market past 30 days, and that is MANY of them. So, if you are considering buying, this may be the time if you are trying to take advantage of the soft market we saw through the spring which has inventory of condos and single family homes piled up.

Possible Lower Interest Rates Later in 2025

The Fed announced a possible two point rate drop by the end of the year, which could shake out the inventory, but Goldman Sachs now expects the Fed to cut rates three times. Also, sellers who are placing their homes on the market with a competitive price, are seeing their homes go into escrow quickly. In late April, we suggested to our sellers to price their property so it would be the lowest in the complex and we were under escrow in five days. Other condos nearby are still on the market.

June sales were up 22% in South Kohala Condo Market

For investors, here’s a stat for you. In South Kohala in May, condo sales were down 42% year over year. In June, sales were up 22%. This could be that sellers, who decided to cut prices to get their condos off the market, were victorious and sales volume for June for condos was up 146% month over month. The time may be right, just saying.

Video Stats Update With 365 Real Estate Team This Week

We have our monthly YouTube real estate market reports coming up if you’d like to tune in (available to our 365Ohana members) as we discuss the stats in West Hawaii and East Hawaii this week, July 9-10th. We also have an island wide update with our Real Broker 365 Hawaii Group scheduled for July 24th, where we will have a mortgage update, as well. For all the updates, check out our real estate channel at 365 Hawaii Real Estate Minute.

Julie Ziemelis, Realtor at Real RS-85062 is an author, vlogger and community volunteer leader. Contact me if you would like more information about the real estate market, trends and neighborhoods and to be placed on a listing alert, or schedule a Zoom call to learn more! Julie@Ziemelis.com