The Kapaa, HI metro area housing market is experiencing a dynamic shift as we enter 2025, characterized by significant changes in pricing, sales activity, and inventory levels. The Median Sales Price has surged to $1,084,500, marking a substantial year-over-year increase of 25.8%. This indicates a strong demand for homes in the area, despite a contrasting trend in the Median List Price, which has decreased by 12.9% to $1,197,500.

The Price Per Square Foot provides further insight into the market's trajectory. The median Price Per Square Foot has risen by 6.9% to $843.59, while the Median List Price per square foot has seen a slight decline of 1.2%, now standing at $866.62. This suggests that while sellers are adjusting their expectations, buyers are willing to pay more per square foot, reflecting a competitive market environment.

Sales activity has been robust, with 54 Homes Sold, representing a remarkable 45.9% increase year-over-year. Pending Sales have also risen by 15.5%, totaling 67. This uptick in sales is supported by an increase in New Listings, which have grown by 12.5% to 54, and an inventory rise of 8.9%, reaching 268 homes. Despite these increases, the Months of Supply have dramatically decreased by 160%, now at 5 months, indicating a faster turnover of available homes.

The Median Days on Market have increased by 36% to 133 days, suggesting that while homes are selling, they are taking longer to do so. This could be attributed to the higher price points and the adjustments in list prices. The average sale to list ratio has slightly decreased by 0.2% to 96%, indicating that homes are selling close to their list prices, albeit with some negotiation.

Interestingly, the percentage of Homes Sold above list price has seen a minor increase of 0.3%, now at 11.1%. This, coupled with a 9.9% increase in Price Drops, suggests that while some sellers are achieving higher-than-expected sales, others are adjusting their prices to meet market demands. Additionally, the percentage of homes going off the market within two weeks has decreased by 15.9% to 13.4%, indicating a slower pace in quick sales.

Overall, the Kapaa housing market is navigating a complex landscape with rising sales prices and increased sales activity, juxtaposed against longer market times and strategic price adjustments. Buyers and sellers alike are adapting to these evolving conditions, shaping a market that remains vibrant and competitive as we move further into 2025.