July 2025, BIG ISLAND, HAWAII

Aloha friends and colleagues,

We hope your Fourth of July was restful, fun, and safe. Our hearts go out to those affected by the recent tragedy in Texas. COMPASS Cares is stepping in to support relief efforts. If you're able, please consider donating here or share the GoFundMe with others. Thanks to your generosity, over $80,000 has already been raised.

Markets responded positively last week as the U.S. economy showed continued strength. Unemployment dipped to 4.1%, and wages rose 3.7% year over year, reinforcing the view that the Fed may hold steady on rates for now. Meanwhile, fourteen countries, including Japan, received notice of proposed blanket tariffs that could begin as early as August 1st. It remains to be seen whether this will move forward and how it might ripple through the global economy.

Back here on the Big Island, the real estate market is beginning to stabilize after a bumpy spring.

Each month, we share our Big Island Market Update first, followed by a newsletter, to keep you informed and a step ahead.

If you're on the island, let us know - we’d love to connect.

Mahalo,

Kona Market Update

Mid-Year 2025

Single Family Home Market Insights

The Kailua Kona Single Family Home market continues to outperform national trends. Median prices rose +8.8% YoY, well above the national average of +1.3%. Inventory is gradually recovering, with active listings up 37% YoY, yet still only at 70% of pre-COVID levels, signaling a lingering supply constraint. The months' supply sits at 4.3, just under the national average of 4.4 months. Despite a slight dip in price per square foot (-0.6%), homes are selling quickly, with an average of 24 days on the market, and showing strong activity.

Kona Condo Market Insights

Kona's condo market is showing signs of normalization. While median price remained flat YoY, in line with the national +0.7%, inventory has returned to nearly pre-COVID levels, up 54% YoY. Months Supply now stands at 6.7, matching the national average. However, pending sales fell -15.4% YoY, and median days on market rose to 53, indicating a slowdown in buyer urgency. With price per square foot down -7.6%, condos are becoming more price-competitive—a positive shift for value-focused buyers.

The market is going through recalibration.

For a deeper dive into the numbers and insights, continue reading on our blog.

2025 Mid-Year Market Recap-

Big Island Luxury Resorts

As we hit the halfway mark of 2025, the Big Island luxury resort market continues to show strength—but with clear signals of recalibration in certain sectors. For buyers and sellers alike, the year has revealed some shifting dynamics, especially in the condo market, while ultra-luxury homes remain in high demand at our most exclusive resorts. Here's a breakdown of how each resort community is performing—and why lifestyle still plays a major role in value.

Median Prices by Island

Homes | Condo

Oahu : $1,150,000 | $512,000

Maui: $1,300,000 | $739,500

Kauai: $1,150,000 | $875,000

Hawaii(Kona):$1,305,045| $650,000

source: Title Guaranty Escrow

Could Compass' Antitrust Lawsuit Shatter Zillow's Empire?

On June 23, 2025, Compass filed a federal antitrust lawsuit against Zillow, claiming that its listing practices are harming competition and limiting seller and agent choice. At the center of the issue is a policy Compass refers to as the "Zillow Ban" - a rule Zillow enforces that prevents listings from appearing on its platform if they haven't first appeared on Zillow or an MLS within 24 hours of being marketed elsewhere.

Compass uses a phased marketing approach that gives our clients flexibility and power: we start with a Private Exclusive, move into Coming Soon, and then launch to the full public MLS. This structure allows sellers to test the market, protect their privacy, and time their launch in a way that builds momentum.

Lighting: The Silent Storyteller in Every Luxury Home

In real estate, we often discuss views, finishes, and floor plans. However, in our experience working on luxury homes, one thing became crystal clear: lighting plays a far greater role than most people realize.

It’s not just about brightness, it’s about creating mood, depth, and functionality across different times of day. From the glow of a stairwell to the ambiance in a chef’s kitchen, lighting decisions are deeply strategic.

If you're interested in where design is headed, I recommend this short read on current kitchen lighting trends. It covers the growing importance of layered lighting, statement fixtures, and more flexible, plug-in options—all relevant even beyond the kitchen.

In luxury homes, every detail matters, and lighting is often the detail that quietly ties it all together.

Fresh Kona listings from the past two weeks!

Ongoing political and economic volatility dampened the typically strong spring market, leading to some buyer and seller hesitation. While year-over-year sales declined, the shift wasn’t dramatic and may rebound with changing macro conditions.

Compared to a year ago, April’s median prices rose slightly (houses +1.3%, condos +0.7%). Active listings climbed 6% month-over-month and 20% annually. Months of inventory hit a 6-year high. Sales volume rose 11.5% from April but was 4% lower year-over-year. 60% of homes went into contract within 30 days; 28% sold above asking; 27% were all-cash. Price cuts, contract delays, and cancellations all increased slightly. Median DOM was 27 days. Distressed sales stayed low at 3%.

Featured Listings

Holualoa

77-212 Ke Alohi Kai Place

4 BD 7 BA 4035 SF $3,995,000

Successful Vacation Rental in Resort Zoned, Oceanfront Gated community

Kailua-Kona

75-2620 Keopu Lani Road

7 BD 6 BA 4399 SF $3,400,000

Excellent Family Compound Estate

NEW PRICE!

Mauna Lani Resort

68-1304 Akea Place

5 BD 6 BA 4606 SF $5,245,000

Shovel-ready homesite comes with HOA approval and a building permits

Makalei Estates

72-4027 Ke Ana Wai Street

0 BD 0 BA 0 SF $799,000

3-acre vacant lot in gated Makalei Estates community

Just Sold

Mauna Kea Resort

62-5153 Lot 5 Hapuna Place

0 BD 0 BA 0 SF $7,500,000

Iolani

76-881 North Pueo Place

3 BD 4 BA 2700 SF $3,100,000

North Kona

77-6516 Alii Drive, Unit 1

3 BD 3 BA 1950 SF $2,200,000

Kalani Sunset

77-298 Wikolia Street

4 BD 3 BA 2816 SF $1,365,000

Daisuke 'Kai' Ioh

RB-19352

kai.ioh@compass.com

M: 808.936.6148

Emil Knysh

RS-75490

M: 808.747.0503

contact us at: KEteam@compass.com

check out our latest blog at: KEteamHawaii.com