Real Estate Market Is Changing—Here’s What You Need to Know
As we head into the fall season here on the Big Island, I’m noticing a definite shift in the real estate market. I’m seeing it at open houses, in company meetings, during conversations with sellers and buyers, and even reflected in the latest economic news.
For the past couple of years, we’ve all grown accustomed to a strong seller’s market—fast sales, multiple offers, and rising prices. But this season feels different, and it’s worth talking about.
Real estate is all about communication, knowing when to have a real conversation, not just send an email or a text. This market change feels like one of those moments where we need to pick up the phone, connect human-to-human, and talk it through.
So, grab a cup of coffee, settle in on the lanai, and let’s dive into what’s changing in the Big Island market—and what it means for both buyers and sellers right now.
Market Shifts to Watch Right Now
The real estate market is never static, it ebbs and flows with buyer demand, seller motivation, and economic conditions. Lately, we’ve been seeing some clear trends that are worth keeping on your radar, whether you’re buying, selling, or just keeping an eye on the market.
Homes Contingent on Home Sales
We’re starting to see more offers that are contingent on the sale of another home, something that wasn’t as common in the ultra-competitive markets of recent years. Ideally, we always recommend having your home on the market and, if possible, already in escrow before making an offer on another property.
That said, some sellers are becoming more open to accepting contingent offers, even when the buyer’s current home isn’t yet in escrow. This flexibility can open doors for move-up buyers who need to sell before they can buy.
Buyer Credits
Buyer credits are also making a comeback. These credits, offered by sellers, help cover closing costs such as escrow fees or loan-related expenses. The amount varies widely depending on the property price point, buyer needs, and the overall negotiation strategy.
I’ve noticed an increase in sellers using credits to make their properties more appealing, particularly in markets with more buyer options and intense competition.
Foreclosures
Foreclosures have been rare in recent years, but a new listing in Kailua-Kona caught my attention. The purchase price was surprisingly reminiscent of the kinds of deals I remember seeing back in 2018, when there were still some truly competitive foreclosure opportunities.
It’s been a while since I’ve been taken aback by a foreclosure price, and it will be interesting to see if this is a one-off situation or the start of more properties like this coming to market.
Longer Escrows & Low Appraisals
While escrow periods typically range from 30–60 days, I’m noticing more contracts pushing the longer end or beyond. This often happens when a home is contingent on the sale of another home and can add months on to a closing timeline.
At the same time, I’m anticipating we might start seeing more low appraisals as the year goes on. I’ve experienced this before, most memorably in 2019, when a property I listed didn’t appraise. It’s never an easy conversation with a seller, but it’s part of the process.
With some sellers still pricing their properties as if it’s 2021 or 2022, appraisals could become a bigger factor in future negotiations.
In Conclusion
The Big Island market is entering a new chapter. One that calls for strategy, patience, and informed decision-making. Whether you’re buying, selling, or just watching from the sidelines, this is the moment to have real conversations about your goals and timing.
If you want to be ready for the opportunities this shifting market creates, let’s talk. I’ll help you understand the current trends, anticipate what’s ahead, and make a plan that works in your favor, so when it’s time to move, you’re already one step ahead.
If you’re thinking about buying or selling on the Big Island this fall, let’s connect. Navigating these market changes with up-to-date insights and honest communication will give you the best chance to succeed, whether you’re ready to make your next move or simply planning for the future.
