Kona Real Estate Market Update: September 2026 – Is This Finally a Buyer's Market?

If you've been watching the Kona real estate market and wondering whether now might be a good time to buy or sell, the September 2026 numbers give us plenty to talk about!

We're seeing some significant changes in the West Hawaiʻi housing market, particularly when it comes to condos. Sales are slowing, prices are adjusting, and buyers are finding themselves in a much stronger negotiating position than we've seen in recent years.

But here's what's interesting: The single-family home market is telling a slightly different story.

You can watch our market update video here, for more info: 

Let's break down what's happening.

Kona Condo Market: Buyers Are Gaining the Upper Hand

The Kona condo market continues to experience a slowdown, with both sales activity and median prices declining compared to September 2025.

In September 2025, 30 condos sold in Kona. Fast-forward to September 2026, and that number dropped to just 18 sales.

That's a 40% decrease in monthly sales activity.

The median condo price also dropped from $597,500 in September 2025 to $547,500 in September 2026, an 8.4% decline.

And this isn't just a one-month trend.

Looking at the year-to-date numbers, condo sales have declined from 241 in 2025 to 200 in 2026, a 17% decrease. The year-to-date median price has also fallen from $620,000 to $570,000, down 8.1%.

Perhaps the most dramatic change is in sales volume. September condo sales totaled just $14.9 million, compared to $48.2 million in September 2025. That's a whopping 69.1% decline!

What does this mean for condo buyers?

Kona currently has approximately 9.75 months of condo inventory. Generally speaking, anything above six months is considered a buyer's market. 

That means buyers have more choices, less competition, and potentially more room to negotiate.

Condos are selling at approximately 97% of their asking price, and the median time in RPR (Realtors Property Resource) is 65 days.

Of course, that doesn't mean every seller is willing to negotiate or that every condo is a bargain. Well-priced properties in desirable locations can still attract serious interest.

But compared to the highly competitive market we experienced just a few years ago, the negotiating environment has certainly changed.

Kona Single-Family Homes: A Different Story

While the condo market is experiencing a fairly significant correction, Kona's single-family home market is showing more resilience, although there are signs of slowing.

In September 2025, 35 single-family homes sold in Kona. This September, that number dropped to 20, representing a 42.9% decline in monthly sales.

However, unlike condos, the September median home price actually increased.

The median price rose from $1,295,000 in September 2025 to $1,350,000 in September 2026, an increase of 4.3%.

So, fewer homes are selling, but the median price for those that sold was higher.

Before we assume home values are rising, though, it's important to look at the bigger picture.,,which includes only 26 sales. 

Year-to-date home prices are actually lower

When we look at the first nine months of the year, the median single-family home price has declined from $1,260,000 in 2025 to $1,194,275 in 2026.

That's a 5.2% decrease.

Interestingly, the total number of homes sold year-to-date has actually increased slightly, from 278 to 284 sales, a 2.2% gain.

And year-to-date sales volume has jumped 23.3%, from $415.9 million to $512.8 million.

That tells us that while September was slower, overall dollar volume in the single-family market has been stronger this year.

One possible explanation is that more higher-priced properties have sold, contributing to increased dollar volume. We'd need to examine individual transactions to confirm that.

Are We Seeing a Buyer's Market in Kona?

The short answer is yes, particularly in the condo market.

Here's how the two markets compare.

The condo market is firmly in buyer's market territory, while the single-family market is closer to balanced, with a slight advantage for buyers.

Both markets are showing that sellers need to be realistic about pricing.

Homes are selling for roughly 3% below their asking prices, on average, based on the reported sold-to-list ratios. AND over 1700 properties on Hawaii Island have had price decreases.

Buyers are also getting more time to evaluate properties, arrange inspections, and negotiate terms.

That's a very different environment from the days when buyers were rushing to make offers and sometimes waiving contingencies just to compete.

Why Is the Kona Condo Market Struggling More Than Single-Family Homes?

One of the things we've been discussing with our buyers and sellers is the growing cost of condo ownership.

In addition to mortgage payments, condo buyers need to consider monthly HOA fees, insurance costs, special assessments, and the financial health of the association.

We've seen some significant increases in HOA fees across Hawaiʻi in recent years, often related to rising insurance premiums, maintenance expenses, and the need to build adequate reserves.

For buyers considering a condo as a vacation home or investment property, these additional expenses can make a big difference in the overall cost of ownership AND the bottom line. 

There's also the question of short-term vacation rental regulations and whether a particular property can legally operate as a vacation rental.

All of these factors can influence demand, particularly among buyers who are purchasing second homes or investment properties.

While the September statistics don't tell us exactly how much each factor is contributing to the slowdown, they're important considerations in today's condo market.

What Should Kona Home Sellers Be Thinking About?

If you're planning to sell a home or condo in Kona, pricing is probably the most important part of your strategy right now.

Buyers have access to more information than ever before, and they're paying close attention to comparable sales, property condition, HOA fees, and how long properties have been sitting on the market.

The days of simply putting a property on the market at an ambitious price and expecting multiple offers are not the norm in today's market.

That doesn't mean homes aren't selling. They absolutely are!

But sellers need to understand the competition, prepare their properties well, and be willing to negotiate when appropriate.

For condo sellers, this is especially important given the amount of inventory currently available.

Is Now a Good Time to Buy Real Estate in Kona?

For buyers who have been waiting for a little breathing room, the current market may offer opportunities that weren't available a few years ago.

You may have more time to compare properties, negotiate pricing, and request repairs or other concessions.

However, I wouldn't recommend trying to perfectly time the bottom of the market.

Real estate is very local, and even within Kona, different neighborhoods, condo complexes, and price ranges can behave quite differently.

A well-maintained ocean-view condo in a desirable complex may have a completely different market than a property with high HOA fees or upcoming special assessments.

The same goes for single-family homes.

Location, condition, views, elevation, and overall desirability continue to play a major role in determining value.

The key is understanding the specific market you're buying into rather than relying solely on islandwide or even Kona-wide averages.

Our Takeaway: Kona's Real Estate Market Is Changing

The biggest takeaway from September's numbers is that we're seeing two somewhat different markets in Kona.

Condos are experiencing a more pronounced slowdown, with fewer sales, declining median prices, and nearly 10 months of inventory.

Single-family homes are holding up somewhat better, although September sales declined significantly and year-to-date median prices are lower than last year.

For buyers, that means more opportunities to negotiate and potentially find a property that fits both their lifestyle and budget.

For sellers, it means understanding the current market and adjusting expectations accordingly.

And for those of us who live and work here in West Hawaiʻi, it's another reminder that real estate is constantly changing.

We believe that understanding these trends helps buyers and sellers make better decisions.

Whether you're thinking about moving to Kona, purchasing a second home, or selling a property you've owned for years, we're always happy to share what we're seeing on the ground.

Julie and Eric Ziemelis

365 Hawaii Real Estate | Real Broker