We had the best December in the last three years here at KW Big Island. Want to know why? It was all about sales. The number of properties sold was off the charts! In this update, we’ll cover why the market performed so well, what to expect with interest rates, and which properties are selling fastest on the Big Island in 2025.
Aloha and Thoughts for California
Aloha, everyone! Dan here from the Hawaii Team at KW Big Island. Happy New Year as we start 2025! I want to begin with a somber note: our thoughts and prayers go out to everyone affected by the recent wildfires in California. Having witnessed the devastation in Maui a few years ago, we understand the challenges you’re facing, and you are in our hearts.
Fire Preparedness & Recovery
Here at the Hawaii Team, we’ve developed two helpful lists for our clients:
- Prep List: Steps to take before a fire event occurs, including video documentation, photos of your home, and a go-bag checklist.
- Recovery List: Guidance on what to do if you are a victim of a fire and lose your belongings. Many people are unsure of the next steps, and this list is designed to help.
If you’d like a copy of either list, please email us at team@thehawaiiteam.com.
December 2024 – Record-Breaking Sales
December 2024 was exceptional. As an owner and investor at KW Big Island, I track contracts written, contracts closed, and overall market activity weekly. Once the election was over, buyers got out their checkbooks, and we sold more properties in one month than ever before.
This surge suggests that buyers are confident in the economy and willing to move forward, even with the current interest rates.
Interest Rates & Market Outlook
Interest rates will largely be tied to inflation this year. If the economy grows as expected, inflation could rise, meaning rates may not decrease. However, buyers have adapted to the new normal, typically paying between 6.75% and 7.25%, and many are moving forward knowing they can refinance later. Interest rates are unlikely to significantly slow the market in 2025.
Seasonal Market Trends
Our busy season runs from Thanksgiving through the end of April, when tourists and seasonal residents are most active. This past holiday season was smooth and positive for local businesses. With visitors from Alaska and Canada now on the island for the next few months, the market continues to thrive. Personally, I’m enjoying pickleball with friends from Canada several days a week!
Hot Properties – Short-Term Vacation Rentals
Right now, short-term vacation rentals (STVRs) are in high demand. If a property is in good condition and located well, it’s quickly snapped up, often near asking price. Investors and buyers are keeping a close eye on these opportunities.
2024 Market Statistics
For those interested in local market data, we have comprehensive statistics available on our website. If you’re curious about specific areas, like Mauna Lani, you can view:
- Number of homes and condos sold
- Price per square foot
- Other key market trends
Stay tuned for an upcoming YouTube video where I’ll walk through these stats page by page—perfect for understanding the market and making informed buying decisions.
Contact the Hawaii Team
If you’re interested in buying, selling, or investing on the Big Island, we’d love to hear from you! Reach out via email at team@thehawaiiteam.com or visit our website: thehawaiiteam.com.
Mahalo and aloha,
Dan
