Kauai Real Estate Update- Real estate activity seems to be picking up some and I’ve heard this from some of my colleagues both here on Kauai and across the state, I’m also seeing it in the numbers. Last week we had a total of 20 properties that went under contract and 19 properties that sold 3 of which sold before they were listed.
These sales will mostly be from those who chose to buy when no one else is buying and, if you can swing it, that’s a good move. Think about how the stage is set right now; real estate started grinding to a halt the closer we came to the most contentious elections that I’ve ever known. After the election the mood shifted to focus on Thanksgiving, now we are focusing on Christmas. Come January 6th people will start focusing again on real estate and things will really start to roll.
For a complete list of all the real estate activity last week on the island of Kauai click here; Kauai Real Estate Update December 2 to 8th, 2024.
Poipu Beach Real Estate Update- Two notable sales happened in Poipu last week on properties that were not on the market; Regency at Poipu Kai #922 which is a 3 bedroom sold for $2 Million and a gorgeous 6 bedroom Kukui’ula home for $8.6 Million. The Kukui’ula home had been on the market a year ago and started at $12.4 million, it went through several price reductions and was on and off the market a bit before selling off market at $8.6 million, to see that home click HERE
For a complete list of all the real estate activity in Poipu since January 1 click here; Poipu Beach Current Market Analysis
For the Kiahuna Plantation click here; Kiahuna Plantation Current Market Analysis
Anniversary of Pearl Harbor
Saturday was the 83rd anniversary of the December 7th, 1941 attack on Pearl Harbor. This year there were two surviving veterans in attendance. Ira “Ike” Schab is 104 years old and was stationed on the USS Dobbin. He was a Navy musician and was ferrying ammunition to his comrades and saw the Arizona explode. For many years Ike found it too difficult to talk about Dec. 7thand couldn’t come to Hawaii until 8 years ago on the 75th anniversary of the attack. 102 year old Ken Stevens who was stationed on the USS Whitney was also in attendance. His ship was not one that was heavily attacked, he remembers the horrific aftermath well.
2,390 servicemen were killed that day, 1,177 were abord the USS Arizona. The last surviving member of the Arizona was Lou Conter who passed away this year at the age of 102 at his home in California.
At this time there are 16 known veterans left who survived the attack. The attack was not limited to servicemen, on Oahu 49 civilians died and 35 were wounded by crossfire and homes were destroyed as well.
Eight WWII veterans who were not a part of the Pearl Harbor attack attended Saturdays ceremony. It’s estimated that next year there will be less than 1,000 living WWII veterans.
Empty Home Tax
The “Empty Home Tax” which is Bill 46 is gaining traction on Oahu. This will not apply to any other island but, if successful on Oahu, would it eventually make its way here to Kauai?
I did a quick google search and it see that it has been implemented in other areas of the U.S. and this particular Bill is fashioned after one that has been done in Vancouver, Canada.
The Bill will phase in a 3% property tax surcharge on properties that are vacant for more than 6 months. 1% for year one, 2% for year two and 3% on the third year. This will not apply to vacant land or properties that are being vacation rented out and there are other exemptions ( a total of 15 ) such as; properties that are for sale, are undergoing renovations, military service or owners who are undergoing medical issues just to name a few.
The purpose of the Bill is to raise funds for affordable housing and at this time it seems there are more questions than answers on how this will be enforced. The Bill is scheduled for a final vote on December 11 and then it will move to hearing public input where there could be additional changes.
To read about this bill click here; Honolulu Records Bill 46
Hawaii Conforming Loan Rates To Rise
Starting January 1, 2025 the conforming loan limit for Fannie Mae and Freddie Mac loans in Hawaii is going up 5.2% from $806,500 to $1,209,750 this will apply to home or condominium. This matters a great deal here in Hawaii where our Median Price is one of the highest in the nation and buying a “starter home” could kick you into the Jumbo rates.
Here is the difference between Conforming and Non-Conforming;
Conforming Loans: These mortgages adhere to the guidelines set by Fannie Mae and Freddie Mac, including loan amount limits, borrower creditworthiness, and debt-to-income ratios. The limit for these loans in Hawaii is currently $806,500.
Non-Conforming Loans: Also known as jumbo loans, these exceed the conforming loan limits and don't meet Fannie Mae and Freddie Mac criteria. They are often used for purchasing higher-priced homes. Due to the increased risk to lenders, non-conforming loans typically come with higher interest rates.
