Kauai Real Estate Year End Review

Kauai Real Estate SOLD and NEW listings Island Wide! Comments Off on Kauai Real Estate Year End Review

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Regency At Poipu Kai #620. 3 Bedroom 3 Full Bath with 1,438 sq ft of living. Central Air Conditioning and superior interiors. List Price: $800,000. Take a video tour and contact me for more information at 808-346-0056

Kauai Real Estate Market 
For a list of properties that Sold, were Just Listed or went in Escrow from December 24 to December 31, 2018 on the island click here: Kauai Real Estate Sales

Poipu Beach Real Estate- JUST LISTED!  An immaculate and beautiful 2 bedroom 2 bathroom townhome set within the tropical oasis of Poipu Crater Resort. Proven successful vacation rental that is air-conditioned, renovated and set within a resort that features a clubhouse, outdoor grills, pool & tennis courts. Contact me for details.  What does the end of the year look like in the Poipu Beach Fee Simple Market?  Click here to find out:  Poipu Beach Fee Simple Year End Review

Kiahuna Plantation- We see the year end with 34 units on the market which is just about 10% of the property.  The lowest priced unit is now $100K as opposed to one year ago when we had units listed at $29,900.  We’ve sold 30 units this year and achieved the highest priced sale for a two bedroom: I listed #140 and another RE/MAX agent brought in the buyer for $593,000.  With the new normal of a $100K starting price we’ll see what 2019 brings.  To bring yourself up to speed click here: Kiahuna Plantation Year End Review

Kauai Year End Review
Floods, Tsunami Threats, Hurricanes.  Weather wise it was a roller coaster ride for our State and for the North Shore of Kauai it was devastating.  How did it impact our real estate market?  In 2017 a total of 1,244 properties were sold and in 2018 1,262 which is an increase of 1.45%.  The small bump in sales is due largely to a lack of inventory.  The combined Median Sales Price went up 22.32%.
The graph below will give you the overall numbers and will break down by district.  Understandably the North Shore numbers bounce around a bit.  Despite that the Median Price is up in every single category except land on the North Shore.
If you would like to know how this impacts your particular area of interest give me a call.  These numbers are general in nature and might not adequately reflect what you are interest in.
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So What Will Hawaii Real Estate In 2019 Look Like?
Kauai’s real estate market has two specific drivers: Tourism and the West Coast.  What is happening on the west coast will happen here on Kauai in about 6 months.   On the mainland the market for the McMansions that were built on spec to turn a quick profit market has slowed, overpriced properties that need work are seeing price reductions and longer days on market.  But properties that are priced correctly are doing well.  In some price points multiple offers and inventory is still very much of an issue.   This would describe our real estate market.

Hawaii’s visitor outlook is positive with no signs of an imminent downturn.  While the state has weathered a series of natural disasters in 2018, from flooding here on Kauai, Tsunami close calls and volcanic activity on the Big Island, Hawaii’s visitor industry is poised to have another huge year.  For the past 7 years Hawaii has broken records for the number of visitors.  The arrival numbers have surged to new heights since 2012, with 2018 set to record more than 9.8 million arrivals, 30% more than in 2006.
Visitor spending, however, has not shown the same growth and is less than 2% higher than it was in the third quarter of 2005.

The Southwest Airlines Wild Card <img src=”image.gif” alt="southwest airlines“/>
When Southwest enters our market I believe that this will be a game changer, especially for Kauai.  Southwest is the darling of the West Coast and excels in their short flight market.  This can be nothing but good news for Kauai whose market for both tourism and real estate is primarily the West Coast.
Southwest has stated more than once it plans to expand it’s services to interisland travel, giving Hawaiian Airlines a run for their money.  Again, this will be good news for tourism and the local economy.

Growing…Growing…But….….
There is only so much our islands can take. The number of rooms, rental cars and the roads are what they are. The visitor industry capacity limits further tourism growth, record-low unemployment limits further job growth, and slower population growth limits further labor market expansion. Together, these limits mean that the pace of near-term growth will be lower in 2019 and that growth over the long term will be much less rapid than in past decades.
That slower growth makes it much more challenging to deal with disruptions, whether they are due to natural disasters such the flooding, eruptions, and tropical cyclones we experienced this year, or manmade disasters such as a full-blown trade war.
It is important not to confuse the acknowledgement of limits as a sign of ill health. The fact is that by many metrics Hawaii’s economy is the healthiest it has been in years. Yes, visitors are pressing against capacity, but that is because the industry keeps setting records for the number of visitors served, and that is growing employment and revenues. It should go without saying that record-low unemployment is a good thing in and of itself. Lower population growth will have its own benefits in a state that faces congestion and environmental stresses, even if a slower-growing and aging population will present challenges for public finances and our systems of social support.

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