As of July 2025, the Kona condo market had shifted in ways that were worth paying attention to. Sales volume was down sharply, properties were sitting longer than they had in years, and rising HOA costs were quietly narrowing the pool of buyers who could qualify for certain buildings. None of that means the market had fallen apart. It means the dynamic had changed and both buyers and sellers needed to recalibrate.
This post captures what the numbers showed at that point in time. We publish regular market updates because the data from one period helps put the next one in context. If you want the most current picture, see our Kona market reports.
Key Takeaways
- Island-wide condo sales dropped approximately 36% year over year in May 2025, from 75 closed sales to 48.
- Days on market surged to 57 to 82 days in Kona, compared to roughly 27 days the prior year.
- North Kona condo sales fell 44% year over year in May 2025, from 56 sales to 31.
- The North Kona median condo price reached approximately $650,000 in May 2025, up from $547,500 in April.
- Rising insurance costs and new reserve mandates were pushing HOA fees and special assessments higher across many buildings.
- Buyers had more leverage than at any point since before the pandemic, but due diligence on HOA financial health had become essential.
What the Sales Data Showed
The headline number was a roughly 36% drop in island-wide condo sales compared to the same month in 2024. Forty-eight closed sales in May 2025 versus 75 a year earlier. That is a real decline, not a rounding error.
North Kona told a sharper version of the same story. Sales there dropped 44% year over year, from 56 transactions in May 2024 to 31 in May 2025. The median price in North Kona climbed to approximately $650,000 in May, up from $547,500 in April and $599,000 in May of the prior year. Rising median prices alongside falling sales volume is a pattern that shows up when slower-moving, higher-priced properties are the ones still closing while the lower end stalls.
Days on market told the clearest story about buyer behavior. Properties in Kona were sitting 57 to 82 days before going under contract, compared to roughly 27 days the prior year. Island-wide the figure was around 38 days. Buyers were no longer making fast decisions, and properties that had been priced at 2023 or 2024 levels were finding out the hard way.
Why HOA Costs Were Changing the Calculus
The slower sales pace was not just about buyer sentiment. Rising HOA fees and special assessments were creating a real financing obstacle in certain buildings.
Two things were happening at once. Insurance costs across Hawaii had climbed significantly, and those increases were flowing through to monthly HOA fees. At the same time, newly mandated reserve requirements were pushing buildings to fund their reserves more aggressively. For buildings that had been underfunding reserves for years, that meant either larger monthly assessments or one-time special assessments that could reach into the tens of thousands per unit.
When HOA fees cross certain thresholds, conventional lenders can flag a building as non-warrantable, which limits the financing options available to buyers. That is not a problem unique to Kona, but it was becoming more common here than it had been a few years earlier. Buyers who did not ask the right questions before writing an offer were getting unpleasant surprises during due diligence.
What This Meant for Buyers
More inventory and longer days on market added up to real leverage for buyers willing to do their homework. There were more properties to choose from, sellers were more willing to negotiate, and the frantic pace of 2021 and 2022 was firmly in the rearview mirror.
The catch was that not all of that inventory was created equal. A condo priced attractively can still be a poor purchase if the building has an underfunded reserve, a pending special assessment, or insurance coverage gaps. Before writing any offer, buyers in 2025 needed to request the HOA financials, review meeting minutes for any flagged issues, and ask about pending or recent special assessments. That step was easy to skip in a fast market. In a slower one, there was no excuse for skipping it.
If you were looking at leasehold condos versus fee simple, that distinction mattered more than ever given how lender attitudes toward certain buildings were shifting. Our post on leasehold versus fee simple covers what buyers in Kona need to understand before they decide.
What This Meant for Sellers
The sellers who were closing in mid-2025 were the ones who had priced their units based on what buyers were actually paying, not what they had hoped to get a year or two earlier.
Pricing to the most recent comparable closed sale and being upfront about HOA fees and any known assessments was not just good practice. It was the difference between sitting on the market for three months and actually selling. Buyers in a slower market have time to look at ten units before making a decision. The ones that win their attention are clean, honestly priced, and easy to underwrite.
For sellers in buildings with higher fees or pending assessments, the right move was to get ahead of the conversation rather than letting buyers find out during inspection or their lender review. Transparency early keeps deals together. Surprises late kill them.
Frequently Asked Questions
Why did Kona condo sales drop so much in 2025?
A combination of factors contributed. Higher interest rates reduced buyer purchasing power compared to the low-rate environment of 2020 to 2022. Rising HOA fees made some buildings harder to finance through conventional lenders. And after several years of strong appreciation, buyers had less urgency and more options, which naturally slowed the pace of transactions.
How do HOA fees affect whether I can get a mortgage on a Kona condo?
Lenders evaluate HOA financial health as part of the loan approval process. If a building's HOA fees are very high relative to the unit value, if the reserve fund is underfunded below a certain percentage, or if there are pending litigation or insurance issues, the building can be classified as non-warrantable. Non-warrantable condos require portfolio loans or other non-conventional financing, which usually means higher rates and a smaller pool of lenders. Asking for the HOA financials before writing an offer is not optional. It is essential.
What is a special assessment and how do I find out if one is coming?
A special assessment is a one-time charge levied on all unit owners to cover a major expense that the reserve fund cannot cover, such as a roof replacement, elevator repair, or insurance shortfall. They can range from a few thousand dollars to well over $50,000 per unit depending on the building and the issue. The best way to find out if one is coming is to request the most recent meeting minutes from the HOA, review the reserve study, and ask your agent to include HOA document review as a contingency in your offer.
Were prices actually falling in the Kona condo market in 2025?
It was a mixed picture. The North Kona median condo price actually rose in May 2025 compared to the prior year, which sounds contradictory given the drop in sales. What was happening is that lower-priced units were sitting longer or not selling at all, while higher-priced units were still moving. That pulls the median up even as overall activity slows.
Is now a good time to buy a condo in Kona?
That depends on your situation and what you are buying. As a general market observation, mid-2025 offered more inventory, less competition, and more room to negotiate than buyers had seen in several years. Whether a specific building and unit makes sense depends on the HOA financials, the fee structure, the leasehold or fee simple status, and your own financing picture. The market conditions create the opportunity. The due diligence determines whether a specific property is actually a good one.
The Kona condo market in mid-2025 rewarded patience and penalized buyers who skipped the homework. That is still true today. If you want to talk through a specific building or unit you are considering, or if you are a seller trying to figure out how to position your property in the current market, reach out to us at Team Kuessner Davis or call 808-854-5432.
Mark Davis, Esq. is a licensed real estate broker (RB-23769) with Kona Homes for Sale at Coldwell Banker Island Properties, Kailua-Kona, Hawaii. He practiced as a transactional and litigation real estate attorney for 35 years before moving to the Big Island full time. He currently serves as a member of the Hawaii County Real Property Tax Board of Appeal. Brenda Kuessner holds the ABR, CRS, e-PRO, GRI, and GREEN designations and has sold real estate on the Big Island for 35 years. Together they serve buyers and sellers across the Kona and Kohala Coast market. This post reflects market conditions as of July 2025 and is for general informational purposes only. It does not constitute legal, tax, or investment advice.
