Big Island

Kohala Ranch 2021 Year-End Market Update and Recap

Aloha from Jake at Mauna Kea Realty,

As a courtesy to Kohala Ranch homeowners and prospective Buyers, I present to you the 2021 Kohala Ranch market recap and sales information breakdown.

Mauna Kea Realty has been extremely active within Kohala Ranch over the past several years and we continue to have a large share of the listings and sales within the community.

aerial photo of kohala ranch big island

In 2021, Mauna Kea Realty and our parent company Hawaii Life together closed more transactions and accounted for more in sales volume within the district of North Kohala than any other brokerage firm. Our team sold over $84 Million in the district of North Kohala last year, which is more than twice the sales volume compared to the closest competing brokerage; 105% more to be exact. 

Furthermore, in 2021, Jake sold 11 properties and represented Buyers & Sellers in 16 total sides of business within Kohala Ranch, totaling over $15M in volume, which is more than any other REALTOR.

Below please find the Kohala Ranch market update and recap highlighting 2021 sales information, current available inventory, and local trends. I hope you find this information interesting and helpful*.

gazebo with ocean view in kohala ranch hawaii island

The Big Picture

2021 was a very active year within Kohala Ranch as there were a total of 20 residential sales. That is a 25% increase compared to 16 residential transactions in all of 2020, and a 5% increase from the 19 residential sales that were recorded in 2021.

For vacant land, there were 72 sales recorded last year. That is a 118% increase compared to the 33 vacant lots sold in all of 2020, and a 300% increase from the 18 vacant land sales in 2019.

Furthermore, there was a total of $65 Million in real estate sales recorded within Kohala Ranch in 2021, which is a 76% increase compared to the $37 Million in sales recorded within the community in 2020, and a 91% increase in sales volume from 2019 when there was $34 Million in sales.

The substantial uptick in the number of sales and volume was induced by remarkable levels of demand in our market driven by a newfound sense of urgency from Buyers coming from dense cities where the Covid-19 virus is still a real concern. This led to a large increase in the desire for real estate in less-dense, clean, and environmentally healthy locations (like Hawaii) with more overall space, a relatively low rate of infections, and year-round outdoor living to enjoy with loved ones.

As we progress into the new year, we expect the over-arching theme of 2021 to continue and be one of rapid and resounding growth. There will be the ongoing trend of fully or partially-remote work opportunities as companies continue to revise their work from home policies, higher asset prices and motivation for enjoyable living spaces outside of the city. As a result, “secondary markets” (a term which, by virtue of this trend, may become obsolete) have seen a continued increase in demand as people leave major metropolitan areas in favor of less crowded and more spacious, safe, and health-conscious surroundings. The market may slow slightly because of an inventory shortage and higher interest rates, but we are already witnessing and expecting even higher trades, high-profile buyers, and an increase in overall volume.

2021 Residential Sales Analysis

As result of a very strong 2021 within Kohala Ranch, the listing inventory of available residential properties is low, with only 3 properties currently being offered for sale. As we progress through the winter season there is need for additional inventory in all segments of the market, particularly within Kohala Ranch. The current lack of inventory is sure to create a demand for owners who may be considering selling.

If you have considered selling, or would like to explore that option, this is an opportune time to take advantage of a strong and bullish market. If you have any questions about recently sold properties or if you are curious about the value of your property, our team is here to help. Feel free to contact me with any of your real estate questions.

Please find below detailed data of the 2021 residential sales categorized by the coastal Heathers section, the middle Meadows section, and the elevated Summit section. 

(Click Here) to view a detailed list of the seven (7) 2021 sales in the Heathers section. (Lower Coastal Section approx. 200ft -1,000 ft elevation, 3-5 Acre Parcels)

(Click Here) to view a detailed list of the nine (9) 2021 sales in the Meadows section. (Middle Section approx. 1,200ft -2,000 ft elevation, 3-5 Acre Parcels).

(Click Here) to view a detailed list of the four (4) 2021 sale in the Summit section. (Upper Ranch Section approx. 2,000ft -3,000 ft elevation, 10+ Acre Parcels).

For a Complete List of Residential Properties Currently Available within Kohala Ranch (Click Here).

For a Complete List of Vacant Land Properties Currently Available Within Kohala Ranch (Click Here).

Local Trends

HAWAII REAL ESTATE DEMAND EXPECTED TO CONTINUE IN 2022: After a record-breaking 2021, the demand for Hawaii residential real estate is expected to continue in the new year, according to local brokers.

With no signs of letting up, Matt Beall, CEO and principal broker of Hawaii Life told Pacific Business News just before the new year that fourth-quarter sales in 2021 may have outpaced those in the first three quarters. “When the dust settles, “I think we may be surprised by the results.”

“Inventory is as low as it’s ever been, but properties are getting “snapped up” at the fastest pace it ever has, selling almost immediately as it comes on the market,” Beall said. But big numbers are still anticipated in the first quarter of 2022.

When looking at luxury and ultra luxury market trends for the new year, Beall thinks there will be more private transactions, off-market sales and “trades that we can’t talk about.” Demand won’t go away and it’ll be more difficult to find inventory in those markets,  he said.

“And I actually do think we’ll keep having those kind of ‘catnip moments’ of crazy sale prices and celebrity purchases, and I think 2022 will have a lot of drama, just like 2021,” Beall said. “It may not be quite the same intensity … and I think some of that will be given by just the pace of the inventory, but I don’t think we’re done yet. I think this round is still going.”

Beall expects record-breaking, “very large sales, probably on all the islands, but I’m not convinced that it’s going to be at the same intensity and aggregate as 2021. [But] it would not surprise me if it did, I’ll say that …” (Source:www.bizjournals.com)

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