North Kohala (Hawi to Kapaau) Home Sales 2024

I begin each year with a review of the real estate markets in the key neighborhoods in which I am active. I have shared these on the Hawaii Life website for 15 years! This report covers home sales in the portion of North Kohala with Hawi and Kapaʻau zip codes, and a separate report will cover the Kohala gated communities near Kawaihae. For reference here are links to the 2023 North Kohala residential market report and the 2022 North Kohala residential market report.

Letʻs go directly to the statistics on Kohala home sales in 2024.

Home on 9 acres with history and multiple structures for a farm or long term rental listed for $1,200,000 MLS 715832

Home Sales Up as Inventory Increases Slightly; Prices Steady At Historically High Levels

Recall that with so much inventory sold in the preceding two years, Kohala real estate sales activity slowed considerably in the second half of 2022, and prices stabilized after two years of rapid growth. That lack of inventory resulted in an even slower pace of sales in 2023. The quick summary is that 2024 was similar: the pace of sales was below recent years but similar to pre-COVID levels. Home prices, however, seem to have permanently found a new base level.

• There is still significant demand for Kohala homes at all price points, despite higher interest rates. 43 Kohala homes sold in 2024, compared with 33 homes sold in 2023, and 54 homes in 2022.
• The median (average) price rose slightly, from $837,000 in 2023 to $850,000 in 2024.
• Fifteen properties – more than 1/3 of all sales – were over $1 million.
• The highest price sale was $4,040,000 for a home in the gated Puakea Bay Ranch community
• Half of the homes sold in fewer than 37 days, less than a month on market.
• The long term rental market continues to be tight and rents high. For investor buyers, or those with an ADU on the property, this is a significant opportunity.

There are currently only 17 homes for sale in Kohala, down from 22 this time last year. The least expensive is asking $650,000 for a plantation era home on Akoni Pule Highway. The most expensive listing is for the renovated homes on 17 acres almost oceanfront at the bottom of Old Coastguard Road, asking $7,490,000.

One Commercial Building Sold in North Kohala in 2024

Kohala Hospital Administrator and the former owner of the clinic building with members of the Hawaii Health Systems staff happy about this win-win for even better healthcare services in Kohala

This doesnʻt really count as residential real estate news, but our health facilities are critical for those of us who are residents of Kohala. The historic clinic building next to Kohala Hospital was purchased by Hawaii Health Systems, owner of the hospital. Hamakua-Kohala Health Center will continue to lease the building until their new campus at the old Kohala Club Hotel site is complete. All good news for availability of health care services without driving to Waimea.

Outlook for 2025 – Is There Hope for Affordable Housing in Kohala?

In looking at the year ahead, it appears the real estate market in 2025 will be similar to 2024. We are seeing strong demand as the year begins, with lots of showing requests and an even dozen homes in escrow. Those range in price from a trustee sale of a possible “tear down” for $450,000 (essentially lot value), to a beautiful home on 20 acres in Ranch at Puakea oceanfront subdivision, asking $5,950,000. The top sale may set a new record high sale for Hawi – Kapaau in recent decades.

What does that mean for local buyers who have been priced out of their hometown of Kohala?

One of the surprises in 2024 was that six bank-owned (after foreclosure) properties were listed and sold, at prices from $290,125 to $800,000. Although some of these sold to buyers coming from outside of Kohala, others were financed with first-time buyer loans. That is a small bright spot.

There is other good news for the future.

Two new housing development projects are working slowly through the Countyʻs subdivision process. The second phase of non-profit developer Hawaii Island Community Development Corporationʻs self-help housing is one. The Hawi Nani project, also proposed near existing self-help projects, is another. Some version of these projects is likely to be under construction in the next 2-3 years, providing dozens of new homes for income-qualified resident buyers.

The other news of 2024 was the formation of the non-profit Kohala Community Land Trust, which can acquire properties to permanently take them out of the speculative resale market and keep them affordable for members of the community to rent or own. It is a Kohala-grown solution to the affordable housing crisis. If you are reading this and would like to support the effort Kohala Community Land Trust membership is open to all for $20/year. The first annual meeting is scheduled for Tuesday, January 28, 2025 at the Hub Barn in downtown Hawi.