The housing market in the Hilo, HI metro area is currently experiencing a period of adjustment, characterized by declining sales prices and a shift in market dynamics. The Median Sales Price has decreased to $595,000, reflecting a year-over-year decline of 5.6%. Similarly, the Median List Price has fallen to $622,800, marking a 4.0% decrease from the previous year. Despite these declines, the median Price Per Square Foot has risen significantly by 12.5% to $498.83, indicating a potential shift in buyer preferences towards smaller, more affordable properties.

Sales activity in the region has also seen notable changes. The number of Homes Sold has decreased by 15.7% year-over-year, with a total of 161 Homes Sold in February 2025. However, Pending Sales have increased by 7.5%, reaching 245, suggesting that while completed transactions have slowed, there is still interest and activity in the market. New Listings have decreased by 5.6% to 201, while inventory has increased by 8.9% to 1,040, contributing to a higher Months of Supply, which now stands at 6.5 months, a substantial 150.0% increase from the previous year.

The market's pace has also slowed, with the Median Days on Market rising by 30.0% to 117 days. This extended time on the market may be contributing to the increased number of Price Drops, which have risen by 4.9% to 28.7%. The average sale to list ratio has slightly decreased by 1.0% to 96.6%, indicating that sellers are receiving slightly less than their asking prices. Additionally, the percentage of Homes Sold above list price has decreased by 2.0% to 13.7%, further highlighting the cooling market conditions.

Despite these challenges, there are positive indicators within the market. The increase in Pending Sales suggests that buyer interest remains, and the rise in inventory provides more options for potential buyers. However, the decrease in the percentage of homes going off the market within two weeks, down by 17.8% to 15.1%, indicates that buyers are taking more time to make purchasing decisions.

Overall, the Hilo, HI metro area housing market is navigating a period of transition, with declining prices and slower sales activity. However, the increase in Pending Sales and inventory suggests that the market may stabilize in the coming months as buyers and sellers adjust to the new conditions.