Buyers Aren't Stupid And More Insights Into The West Hawaii Real Estate Market

I was talking to a "hesitant home buyer" this morning at a pickleball game. She said she found a home she loves in her neighborhood for sale, but said the price is too high. I asked her why she thought that. "I used Zillow, Redfin and Realtor.com to check for a value estimate and I watch YouTube videos to check for trends".  And she also has been watching that neighborhood for awhile and knew when the past few homes sold and for how much and how much below listing price. Yes, it's all on the internet and buyers are doing their research. No one likes to pay more for anything if they don't have to, right? Same goes for homes.  

 

The home buyers of today, and I am talking ALL ages, are savvy, research thoroughly, and won't overpay just because a seller wants a high price. They often look at current market data (windshield view) versus past values (rearview mirror) to make logical decisions based on features, needs, and affordability, though emotions can also play a role. It's the emotions that play into a purchase that may actually be the goal that sellers hope for when they discuss the listing price with their Realtor. (I have been there, I can tell you!) Who doesn't think their home has a great view or location or amazing improvements? 

 

What I'm seeing in the West Hawaii real estate market are sellers who expect past purchase prices to dictate current value and they often clash with buyers who see market realities. I ran a search on single family homes sold since last July and it shows when the home sold, what was the final purchase price, days on the market and original sales price. The screen shot is gives you the story. 

 

MOST of the homes received less than list and the average was about 96% of list price. This is NOT a crashing market by any means. It's a slow softening, with an over all 3% decline in single family home value in 2025. Buyers can research this information and they usually have a pretty smart Realtor who knows how to run a Comparative Market Analysis, as well. 

 

 

Information Access: Buyers have extensive data at their fingertips (reviews, price comparisons, market trends) to inform their choices, making them less reliant on seller (OR Realtor!) narratives.

Rational & Emotional Factors: Decisions balance logical assessments (price, quality, utility costs) with feelings (trust, desire for a home and living in Hawaii, no matter what) 

Market Awareness: Smart buyers look at comparable sales (comps) and current conditions, not just what a seller paid years ago, understanding that markets fluctuate. 

Focus on Value: They evaluate if a product or property truly meets their needs and offers good value, sometimes walking away from deals that don't make financial sense.

 

Don't Rely on Past Prices: Sellers stuck on what they paid are often detached from current reality. Or they want to test the market, but when the test is over after 30 days, buyers wonder what is wrong with the house. 

Be Realistic: High prices unsupported by market data will deter informed buyers. Buyers are not just randomly making low ball offers. They are waiting for the price correction on the MLS. 

Understand Buyer Behavior: Buyers are looking for solutions and value, not just a transaction; they notice details like utility costs and local amenities. They will ask for solar output, electricity,water and cable bills, and landscaping costs. I have seen this in all our transactions in 2025. 

•  

If I can do a little, "I remember when" - I have been writing about the real estate market for 30 years. Back in 1996, they predicted buyers would be able to get as much information as a Realtor on this new thing called the internet. Yes, I was there, working as the Public Relations Director for the Silicon Valley Assocation of Realtors. 

I also was a content writer for a predictive real estate analytics company that now fuels Housing Wire with it's data. Data that is shared consistently via Realtors and content producers on Instagram, Tik Tok, YouTube and Facebook. Buyer's are consuming this info. There is no hiding..lol. 

Speaking of YouTube, I have been sharing West Hawaii housing trends since 2018 on our "365 Hawaii Real Estate Minute" YouTube channel. (I have been a Realtor for four years and am proud to say have helped dozens of clients in that time buy and sell homes in West Hawaii.) If you want to be a savvy homebuyer, check it out, and also join our 365 Ohana, where you can sign up for real estate listings alerts, receive my resource books, get access to my "I'm Moving to the Big Island of Hawaii and Buying A Home" private Facebook group and receive monthly newsletters about real estate and also events and lifestyle videos. If you are thinking about selling your home, let's use all this helpful information, price your home right and get it sold so you can move on to your next home.  Julie@Ziemelis.com