A Mid-Year Look at the Single-Family Home Market: January — May 2026

June 2026

If you’ve been watching the Hawaiʻi Island real estate market and wondering whether now is a good time to buy or sell, the short answer is: it depends on where you’re looking — and what you’re looking for. The Big Island isn’t one market. It’s a collection of very different communities, each with its own pace, price range, and buyer pool. Here’s what the numbers from the first five months of 2026 are actually telling us.

The Big Picture

Hawaiʻi Island was one of the busiest single-family home markets in the state through the first five months of 2026. Sales volume was up significantly year-over-year — April alone saw a 22% jump compared to April 2025 — and homes were moving faster than they were a year ago. That’s a meaningful shift, and it’s being driven largely by buyers who are priced out of Oʻahu and Maui and finding real value here.

Statewide, mortgage rates were hovering around 6.36% as of mid-May (Freddie Mac) — not exactly a bargain, but the market is clearly still moving. Buyers have adjusted their expectations, and sellers who have priced their homes realistically are getting results.

The Monthly Numbers

Here’s how the single-family home market tracked month by month. The four numbers are: homes sold, median sale price, average days on market, and sale price as a percentage of original asking price (SP/LP — above 100% means homes sold over asking; below 100% means buyers got a discount).

• January: ~145 sales | Median ~$550,000 | ~35 days on market | ~98% SP/LP
• February: ~150 sales | Median ~$560,000 | ~34 days on market | ~98% SP/LP
• March: ~165 sales | Median ~$580,000 | ~33 days on market | ~97% SP/LP
• April: 187 sales | Median $590,000 | 33 days on market | ~97% SP/LP
• May: 180 sales | Median $468,000 | 29 days on market | ~97% SP/LP

Wait — why did the median price drop so much in May? It’s not because values fell. It’s because a higher share of May’s sales came from more affordable East Hawaiʻi communities like Pāhoa, Hilo, and Volcano. Pāhoa alone had 42 sales at a $375,000 median — up 62% in volume year-over-year. When lower-priced neighborhoods drive more of the month’s activity, the island-wide median goes down even if individual neighborhoods are holding steady. Always look at the neighborhood, not just the island number.

If You’re Thinking About Buying

The Big Island continues to offer some of the most accessible price points in the state — and that’s attracting a lot of attention from buyers coming from the mainland and from other islands. With homes selling in about a month and buyers generally paying close to (but slightly under) asking price, this is a balanced market that favors prepared buyers.

• Lava zones matter — a lot. Hawaiʻi Island is divided into lava hazard zones 1 through 9. Zones 1 and 2 carry the highest risk and can be very difficult or impossible to insure. This affects your ability to get a mortgage and your long-term resale options. Always check the lava zone before falling in love with a property.
• East vs. West Hawaiʻi are very different markets. Kona and Waimea on the west side tend to attract buyers looking for resort-adjacent lifestyle and higher price points. Hilo and East Hawaiʻi offer lower prices and a more local community feel. Know which one fits your life.
• Get pre-approved before you look. Even in a balanced market, well-priced homes move in about a month. Having your financing lined up means you can act when the right property comes along.

If You’re Thinking About Selling

The good news: there are active buyers in the market, volume is up, and homes are selling in about a month. The catch: buyers are paying about 97% of the original asking price on average, which means overpricing is a real risk. A home that sits too long starts to look stale, and buyers start to wonder what’s wrong with it.

The sellers doing well right now are the ones who:

• Price based on what comparable homes have actually sold for recently — not what they wish the market would pay
• Present their home well — clean, decluttered, and photographed professionally
• Are realistic about negotiation — landing at or slightly below asking is the norm right now, not an insult

The Bottom Line

Hawaiʻi Island’s single-family home market is healthy and moving in 2026. It’s not the frenzied seller’s market of 2021, and it’s not a buyer’s paradise where you can lowball freely. It’s a balanced, active market where good homes priced right are selling in about a month — and buyers who do their homework are finding real value.

The biggest mistake you can make right now — whether you’re buying or selling — is treating the whole island as one market. Your neighborhood, your lava zone, your price range, and your timing all matter. That’s where a good local agent earns their keep.

The Waimea and North Hawaii Market

Waimea sits within South Kohala but tells a different story than the Kohala Coast resort market. While the coast is seeing average sales prices approaching $2M and heavy luxury activity, Waimea proper offers a much wider range — from entry-level homes in the $400,000s to ranches and estate properties well above $1M. Well-priced, well-presented homes in Waimea are moving. Properties that linger tend to do so for a reason — price, condition, or location. If you’re considering buying or selling in Waimea, now is a good time to have an honest conversation about what comparable sales are actually showing.

South Kohala

The broader South Kohala market — which includes the Kohala Coast resort communities of Waikoloa, Mauna Kea, and Mauna Lani — is showing strong numbers in 2026. Average sales prices rose to $1.99M, up 12% year-over-year, with total sales volume up 25%. Sales above $1M increased 17% year-over-year, reflecting continued strength in the luxury segment.

That said, the market is becoming more selective. Inventory is up approximately 15% compared to Q1 2025, days on market are increasing, and price reductions are appearing more frequently — a sign that buyers are becoming more disciplined and less willing to overpay for properties that don’t clearly justify their asking price. Sellers who price strategically and present their homes well are still getting results. Those who don’t are sitting.

Hamakua

The Hamakua Coast — Honoka’a, Paauilo, Laupahoehoe and the surrounding areas — is a small, relationship-driven market that doesn’t generate the same volume of data as the west side. There have been 20 sales so far this year, with a median sales price of $595,000. What I can tell you from direct experience is that Hamakua attracts a specific kind of buyer: people who value agricultural land, privacy, ocean views at elevation, and a genuine rural community feel. Properties here tend to stay on the market longer than the island average, but the right property finds the right buyer. If you’re considering Hamakua, patience and local knowledge matter more here than almost anywhere else on the island.

A Note on Other Markets

My practice is focused on Waimea, North Kohala, South Kohala, and Hamakua. If you’re interested in Kona, Hilo, Puna, or Ka’u, I’m happy to refer you to excellent agents in those areas who know their markets as well as I know mine. A good referral is worth more than a stretched relationship.

Sources: Locations Hawaiʻi, Coldwell Banker Island Properties, Hawaiʻi Life, and Maui Now. Figures marked ~ are estimates based on available monthly and quarterly data. This report covers resales of existing single-family homes only; new construction and condominium data are excluded. All data is deemed reliable but not guaranteed. This article is for general informational purposes only and does not constitute legal, financial, or investment advice.

Featured image courtesy of Sarah Anderson. Judy S. Howard, Esq. is a Realtor Broker with COMPASS in Waimea, Hawaii, and a licensed Hawaii attorney with over 30 years of experience. She can be reached at judy@livinginwaimea.com or 808-885-5588.

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May 2026

The Hawaii Island real estate market is active. Homes are going into escrow. But look a little closer and a more complicated picture emerges.

Nearly every buyer I have encountered recently needs to sell their existing home before they can purchase a new one. Mortgage rates remain high. And the broader economic environment has made buyers cautious about committing to major financial decisions.

The Economic Context

Buyers’ hesitation right now is not irrational — it is a reasonable response to a uncertain environment. Two major forces are at work simultaneously.

The conflict in Iran and the closure of the Strait of Hormuz has caused what the International Energy Agency has characterized as the largest supply disruption in the history of the global oil market, with oil prices surging significantly and ongoing concerns about both energy and food security. For the Federal Reserve, sustained high oil prices create an impossible position — caught between inflation that pushes rates higher and pressure to bring rates down.

Layered on top of that is unpredictable federal trade and tariff policy that has added its own uncertainty to an already stressed economy. High mortgage rates have dampened the real estate market, while rising insurance premiums are eating into operating costs — and now surging energy prices are adding further pressure on consumers and businesses alike.

The result is a buyer pool that is active but cautious — and a market where creative thinking on both sides of a transaction is more valuable than ever.

Seller Credits for Point Buydowns

This is my preferred strategy in the current market for motivated sellers.

Instead of reducing the price, the seller offers a credit at closing that the buyer uses to reduce their mortgage interest rate.

Why I prefer this to a price reduction: A price reduction is permanent and shows up on every real estate website as a signal that something may be wrong with the property. A seller credit achieves a similar effect on the buyer’s monthly payment without the stigma — and without reducing the comparable sale price for your neighbors.

Why sellers should consider it: In a market where buyers are stretched, making the monthly payment more manageable may be the difference between a sale and a listing that sits. The net to the seller is modestly lower, but a transaction that closes is worth more than a perfect price that never materializes.

Owner or Seller Financing

For the right seller in the right situation, owner financing can result in a higher net than a traditional sale. Instead of taking a lump sum and reinvesting it at current rates, the seller becomes the bank — receiving monthly payments at an agreed interest rate, often more attractive than what savings accounts or CDs currently offer.

The downside is real and worth understanding clearly: if the buyer defaults, the seller must foreclose. Foreclosure in Hawaii is not fast, not cheap, and not simple. This is not a casual arrangement — it requires careful legal documentation and confidence in the buyer’s ability to perform.

As both a realtor and a licensed attorney I can help direct sellers to experts who can structure these transactions properly.

Contingent Offers With a Kick-Out Clause

A contingent offer means the buyer’s purchase depends on selling their existing home first. Many sellers are accepting these in the current market — which reflects how motivated sellers are to move forward.

The kick-out clause offers some protection: the seller accepts the contingent offer but retains the right to continue marketing. If another buyer comes along, the original buyer gets a short window — typically 72 hours — to remove the contingency or step aside.

The complexity in the current environment is that buyers counting on a specific net from their home sale are making assumptions about a market that is difficult to predict right now. Both buyers and sellers entering contingent transactions should go in with realistic expectations and a clear plan for what happens if the numbers don’t work out as anticipated.

The Price Reduction

A price reduction is the most visible tool available. It triggers immediate alerts on Zillow, Realtor.com, and every other real estate portal for everyone who has saved your listing.

I’m not a fan of price reductions as a first strategy — they are a one-way door and they set a new comparable for your neighborhood. But if a property has been sitting and visibility is the problem, a price reduction is effective at generating renewed attention quickly.

What’s Right for Your Situation

There is no universal answer. The right strategy depends on your timeline, your financial situation, your motivation to move, and what the property looks like relative to current market conditions.

What I can offer is an honest conversation about your realistic options — without sugarcoating and without the cheerleading that sometimes passes for real estate advice. If you are a buyer or seller in Waimea or North Hawaii feeling uncertain about your next move, reach out. This is exactly the kind of situation where having a realtor who is also a licensed attorney makes a meaningful difference.

Judy S. Howard, Esq. is a Realtor Broker with COMPASS in Waimea, Hawaii, and a licensed Hawaii attorney with over 30 years of experience. She can be reached at judy@livinginwaimea.com or 808-885-5588.

Market Overview

The 2026 Hawaii Island market is active and finding its footing after a few years of unusual volatility.

In Kona, buyers finally have room to breathe. The frantic pace of recent years has eased, inventory has improved, and there are opportunities to negotiate and take the time needed to find the right property.

Hilo remains steady, with consistent demand particularly for well-located neighborhood homes.

Up in North Kohala, the space, beauty, and slower pace of life continue to attract serious buyers, and spring has brought renewed interest.

Here in Waimea, well-priced, well-presented homes are moving — sometimes quickly. Properties that linger tend to do so for a reason, whether price, location, or condition.

If you’re considering buying or selling in Waimea, Hamakua, or North Kohala, now is a good time to have an honest conversation about what the data actually shows. I have current, detailed knowledge of this market and I’m happy to share. Reach out anytime.

The Best Time to List Your House

Timing matters. A recent Redfin analysis found that late April hits a sweet spot for sellers — buyers are active, but the market isn’t yet flooded with competing listings. There are typically about 8% fewer homes for sale at the end of April than at the summer peak, meaning less competition for sellers.

Data also shows that May and April have historically had the lowest share of price cuts — in six of the past ten years, May was the month sellers were least likely to have to reduce their asking price.

For buyers, the best deals tend to emerge in late summer and early fall, when discounts off original asking prices peak — that’s the window when both selection and negotiating leverage are working in a buyer’s favor.

Here in Waimea, seasonal trends are less dramatic than on the mainland, but the same principle applies — well-priced homes listed now, before summer inventory builds, have the best chance of attracting serious buyers quickly.

Read the full Redfin analysis here

What’s Happening Around the Island

I’m late posting this, so many of the events have come and gone. But the IRONMAN 70.3 Hawaii (Honu) takes place May 30th starting at 6:30am along the Kohala Coast. Whether competing or spectating, the energy along the Queen Ka’ahumanu Highway is electric.

Featured Listing

64-5252 Hohola Drive, Kamuela — $970,000 3 bedrooms, 2 bathrooms, 1,348 sq ft. Peace and quiet on a quarter-acre lot with amazing views of Mauna Kea, just minutes from the center of Waimea.

Judy S. Howard, Esq. is a Realtor Broker with COMPASS in Waimea, Hawaii, and a licensed Hawaii attorney with over 30 years of experience. She can be reached at judy@livinginwaimea.com or 808-885-5588.