Kauai Real Estate Update, Southwest Hawaii Expansion Stalls, Kauai Real Estate Year To Date

Kauai Real Estate SOLD and NEW listings Island Wide! Comments Off on Kauai Real Estate Update, Southwest Hawaii Expansion Stalls, Kauai Real Estate Year To Date

Kauai Real Estate Update

For a complete list of everything that has Sold, was Just Listed or went into escrow for last week on the island of Kauai click here: Kauai Real Estate Update June 24 to June 30, 2019

Poipu Beach Real Estate Update- SOLD!  I represented the Buyers on their successful purchase of Kuhio Shores #206.  This one bedroom one bath is located on the “Bay Side” of the complex and was completely renovated, had air-conditioning installed in the living area and bedroom. This unit was sold fully furnished with future bookings included in the sale!  This unit sold before it was listed on the MLS.
If you missed out on this unit at the Kuhio Shores I have a lovely 2 bedroom listed for $988,000 and it’s also air-conditioned and has a huge amount of future bookings.  Contact me for more information at 808-346-0056.
For a complete list of the fee simple activity in Poipu since the beginning of this year click here: Poipu Beach Real Estate Current Market Analysis

Kiahuna Plantation Real Estate Update- For a complete update on all things Kiahuna click here: Kiahuna Plantation Current Market Analysis

County Of Kauai To Put Liens On Illegal Vacation Rentals
The County of Kauai has a new resource to combat illegal vacation rentals.  Bill No. 2746 passed a second and final reading at the County Council last Wednesday.

An illegal rental is one that is not located in the Visitor Destination Area or one that has been grandfathered in and has not kept up on it’s yearly application permits.  This law will notapply to the majority of my readers.  This applies to people that are operating vacation rentals via sites like Airbnb or VRBO from their property that are outside of the VDA.  Most of the people that are doing this know that they are in violation and are just hoping that they don’t get caught.

The people that are legally renting out their vacation rental properties are going to benefit from this law.  Those that are illegally doing this can offer cheap rates and not charge GE/TA taxes.  With these rentals no longer available the people that are renting legally will benefit from the renters needing to find other accommodations.

The County will also have the ability to foreclose on a property with a lien on it.  Additionally they will be able to fine the vacation rental owner $10,000 per day on any illegal rental once they have been given notice.

Southwest Expansion To Be Delayed 
The grounding of the 737 Max aircraft is causing Southwest to pull back on their expansion into the Hawaii market. The next routes that were going to be coming on were Sacramento and San Diego to Honolulu flights.
Southwest and other U.S. airlines were forced to ground the 737 Max aircraft in March when two such planes crashed twice in five months. Between the two accidents, 346 people died.
When the 737’s can fly again Southwest will need to go through the “Extended Range Twin Engine Operations Performance Standards” (or ETOPS) process again.  They will continue at that time to roll out the next wave of flights between the mainland and Hawaii.  Because of this Southwest has decided remove their Max aircraft through September 2, 2019.

When are they coming to Kauai? This is suppose to happen this month last I had heard.  Southwest is going to give an update on their flights on July 10, 2019.  Stay tuned.

Kauai Real Estate Year To Date Update
The first half of the year is over and we can now review how Kauai Real Estate has performed.
Current events this year have been bumpy at best and the markets have gotten spooked at different turns.  This last week it was the talks with China and North Korea with the Feds closely watching.  The Feds will also be focusing on the Jobs Report which is due at the end of this week.
Last years massive storms, and the lack of access to Haena for 14 months, has resulted in a softening for the North Shore market which will drag down the numbers for the whole island.  Look at the Median Price for a home at $1,010,760 which is almost 20% down from this same time last year at $1,237,500.  The south shore home prices and the number of sales are down as well.

Condominiums sales are down but the prices????  Holy Smokes. Way up across the board.  I can tell you this is due to the lack of inventory. It’s a totally different landscape than it was last year, not a lot of options.  On the South Shore Pili Mai is starting construction on their last building and are not far away from being 100% sold out.

Land sales and prices are pretty much up all across the board.  Again there is a lack of inventory for land with the only new projects coming on board being the lots in Lihue which explains the decline in their Median Price.

Below is a graph for the first six months of this year.  Call me if you have any questions on how this relates to your particular area of interest for the Kauai Real Estate market.

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