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When people think of Big Island Real Estate they usually think of properties in Kailua-Kona or Kohala. Prices there have soared and some of these areas seem to now be unaffordable for the average Joe.
More recently Hilo Real Estate has experienced a major increase in value. Hilo, with its many business headquarters, legal and governmental offices, has become a desired place to live.
Still, the highest Big Island Real Estate prices are paid on the Kona side of the Big Island, although it’s probably only a matter of time until real estate on the Hilo side will catch up.
A 2006 publication from First Hawaiian Bank showed the median price development of Big Island Real Estate (Single Family Homes) in 4 key areas:
| 2001 | 2005 | Value increase | |
|---|---|---|---|
| Puna | |||
| North Hilo | |||
| North Kona | |||
| South Kohala |
It’s interesting that the article states, “As home prices continue to rise, they escalate well beyond the reach of many who live and work on the Big Island, which is especially painful for new entrants to the market and those considering relocation here.” It also mentions that the housing price boom will end when people become unable to afford the prices anymore.
The problem is that Big Island Real Estate is driven, - at least in part - by absentee owners. Most of these owners do not consider their Big Island dwelling as their primary residence.
Even though home sales on the Big Island slowed down a bit in the beginning of 2006, the median prices for single-family homes are still slightly increasing in value.
- October: $363,000
- November: $379,500.
- December: $432,000.
- January: $392,450.
- February: $421,000.
However, there is hope for those who are not millionaires and still want to live and own property on the Big Island. So, where is the biggest potential for good value property ownership?
According to the sales numbers for 2006, the hottest and most active markets are Hilo Real Estate and Puna Real Estate. And if you compare Puna median prices for single family homes of under $300,000 to that of North Kohala ($875,000), South Kohala ($617,000), North Kona ($671,000) and South Kona ($695,000), you will see clearly which Big Island Real Estate has the most potential for a good return on investment. To read more about Puna Real Estate, click here.
Go from Big Island Real Estate, to Puna Real Estate
