The Condo Market Has Shifted: Why It’s a Buyer’s Market in 2025

If you’ve been considering purchasing a condo on the Big Island, now may be the perfect time to buy. After years of a competitive market favoring sellers, we see a substantial shift into a buyer’s market. This change is primarily driven by several factors, including rising HOA fees, increasing inventory, high interest rates, elevated prices, and special assessments impacting condo complexes island-wide.

1. Rising HOA Fees and Special Assessments

One of the most significant changes affecting the Big Island condo market is the substantial increase in HOA fees. Many condo associations have raised monthly dues to cover rising insurance costs, maintenance, and reserve fund requirements. Additionally, last year, we viewed many complexes having to issue special assessments, requiring unit owners to pay extra fees to cover the significant increase in the complex insurance rates.

2. Increased Inventory Gives Buyers More Choices

The number of condos for sale on the Big Island has been steadily increasing. More inventory means less competition for buyers and more room for price negotiation. In some condo complexes, units are staying on the market longer (days on the market), giving buyers leverage when making offers.

3. High Interest Rates and Pricing Pressure

Interest rates remain higher than in previous years, which has slowed buyer demand. While sellers initially resisted price reductions, many are now adjusting their expectations to attract buyers in a less competitive market. This means well-qualified buyers can find deals that weren’t available just a year ago.

4. Condo Prices Are Stabilizing (or Declining in Some Areas)

Over the past few years, condo prices on the Big Island surged due to high demand and low interest rates. However, with increased HOA monthly dues and interest rates, in today’s market, we are seeing fewer buyers in the overall market and are resident to purchasing. As a result, many condo prices have stabilized or even begun to decline in some areas, creating more opportunities for buyers to enter the market at a more reasonable price point.

5. Motivated Sellers Are More Open to Negotiation

With longer days on the market and higher carrying costs (such as HOA dues and assessments), many sellers are more willing to negotiate. This could mean:

• Price reductions
• Seller concessions (such as covering closing costs or even monthly/yearly HOA costs)
• Negotiating special assessments into the purchase agreement

This flexibility can make buying a condo more affordable and less stressful compared to the ultra-competitive market of the past.

Final Thoughts: Should You Buy a Big Island Condo Now?

If you’ve been waiting for the right time to buy a condo on the Big Island, the current buyer’s market presents a unique opportunity. With rising inventory, increased HOA fees, special assessments, and pricing pressure, sellers are more motivated than ever to work with buyers and negotiate favorable deals.

Whether you are looking for a primary residence, second home, or vacation rental, now is the time to explore the market. If you’re ready to take advantage of this shift, let’s connect—I’d be happy to help you find the right condo at the right price. Contact me today to start your search!

With Aloha,
Leeana