Kailua Kona, HI 96740 Real Estate Market Report

ZIP Code: 96740
Report Date: May 2026
Market Temperature: NEUTRAL
Scope: This ZIP code analysis focuses on single-family residential (SFR) properties. Metrics are calculated from recent sales and active listings within the past 90 days.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Kailua Kona, HI, are averaging approximately 6.4%, reflecting a market environment where rates have remained elevated throughout early 2026.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The primary market value signal is the median sold price 1,250,000, which should be used as the leading benchmark for pricing decisions; given the observed gap between the median listing price 1,500,000 and the median sold price 1,250,000, sellers may need to align expectations to avoid pricing friction when marketing SFR and condo inventory.

2. Transaction velocity appears slow with a median days on market of 294, which suggests slower sales velocity and that more aggressive time-based marketing or flexible terms may be required to convert interest into closed sales rather than relying on long listing exposure; consider targeted promotions and time-limited incentives to improve liquidity.

3. Market-level indicators are largely neutral: price year-over-year trend is flat and market temperature is neutral, while rent year-over-year trend is up; with interest rate pressure labeled moderate and local mortgage rates averaging approximately 6.4%, underwriting and buyer qualification sensitivity should be factored into pricing strategy and contract contingencies.

4. Local unit-level economics show a median price per square foot of 718 and a median market rent of 2,800, which supports continued investor and rental demand interest; prioritize listings that demonstrate clear rent comparables and emphasize income potential where appropriate to attract cash and rate-sensitive buyers.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.

Kailua Kona, HI 96740 Real Estate Market Report

ZIP Code: 96740
Report Date: May 2026
Market Temperature: NEUTRAL
Scope: This ZIP code analysis focuses on condominium properties. Metrics are calculated from recent condo sales and active listings within the past 90 days.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Kailua Kona, HI, are averaging approximately 6.4%, reflecting a market environment where rates have remained elevated throughout early 2026.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The primary indicator of recent market value is the median sold price of $649,000, which suggests a market where actual transactions are tracking below seller expectations given the median listing price of $675,200; flat year-over-year price trend supports a near-term stabilization in realized prices rather than growth.

2. Liquidity appears slow: the median days on market is 334, which points to prolonged marketing periods and slower sales velocity and may indicate pricing friction or buyer selectivity even as inventory appears elevated relative to sales activity; down signals on time-to-contract warrant careful pricing and staging for sellers.

3. Market balance signals are neutral: the market temperature is neutral with price year-over-year trend reported as flat and interest rate pressure described as moderate — Current 30-year fixed mortgage rates in Kailua Kona, HI, are averaging approximately 6.4%, reflecting a market environment where rates have remained elevated through early 2026.

4. Rental demand shows resilience: the median market rent is $2,800 and rent year-over-year trend is reported as up, which supports steady rental cash-flow prospects even as condo values show relative softness and the ultra-luxury segment is noted to be appreciating.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.