Kauai Real Estate Update- Last week the interest rates went up 0.25% however the lending industry was prepared for that so there was no impact on the rates. A 30 year fixed rate is 7.05% which is down from the previous high of 7.37%. As of July 31 we have 136 homes for sale on the entire island and only 18 of those are under $1 million and of those 18 homes 8 of them have been on the market for more than 90 days which means there is a back story. For a complete list of all the real estate activity on the island for last week click here: Kauai Real Estate July 24 to 30, 2023.
Poipu Beach Real Estate Update- Sold, Regency Villas Unit 214 for $1,225,000. With the lack of inventory, and a Buyer of mine that needed to do a 1031 exchange, I got on the phone was able to find a gorgeous Regency Villas 2/2, central AC, beautifully furnished condominium that is located on the Poipu Kai greenbelt. For a complete list of all the fee simple real estate activity in Poipu Beach since the beginning of this year click here: Poipu Beach Current Market Analysis
For the Kiahuna Plantation click here: Kiahuna Plantation Current Market Analysis
Kauai Jobless Rate Down
The unemployment rate on Kauai is now at 3.2% from 4% in June 2022. The accommodation industry had the largest gain at 10.5%. Retail added 300 jobs which is a 8.1% gain.
Surprisingly the jobless rate on Kauai was the lowest of all the other islands, Oahu is at 3.3%, Big Island 3.8% and Maui at 3.9%.
Bus Driver Shortage Closes Schools
Parents of the children attending Kapaa Elementary and Kapaa High School were told that there is no bus service to take them to school as a result of a bus driver shortage. I have to say this is a first for me, I’ve never heard of this happening but it is and right on our island. There is talk of using the Kauai Bus for the kids but at this time it’s just being discussed. School will start on August 7th here in Hawaii.
The County of Kauai issued this statement: “We are in touch with State Department of Education officials on the shortage of school buses this year and, like last year, we anticipate an increase in student ridership on our Kaua‘i Bus routes islandwide once the school year begins.”
-Celia Mahikoa, Executive for the County of Kauai Transportation Agency
Hawaiian Airplane Recall, Flights Impacted
The Airbus A321neos built between 2015 & 2021, which were made by Pratt & Whitney, are needing to be inspected due to “a rare condition in the powdered metal” which results in some parts wearing out faster than others. Every one of those planes needs to be flown to the mainland and inspected by September.
All of Hawaiian Airlines A321’s were made during that time but they are not the only airline impacted, the others are American, Delta, IndiGo and Lufthansa.
On the heals of this news Hawaiian Airlines also learned that their Boeing 787 delivery will be delayed from November 2022 to January 2024.
The configuration of the A321’s has 2-2 seat configuration for First Class and 3-3 for the main cabin. The are a number of direct flights from Hawaii to the mainland that use this plane, route cancellations will be forthcoming.
Kauai Real Estate Update Comparing July 2023 vs 2022
From a “Boots on the ground” perspective the number of sales at the end of the first 7 months on Kauai is not representative of what our day-to-day work lives are like. When working with a ready, willing and able buyer it's tough for Kauai agents to find suitable inventory, the limited options available are making things a bit tricky.
And, the definition of “suitable inventory” has certainly changed from the days of the 2 & 3 percent interest rate. With the cost of borrowing money two and three times higher than it was, Buyers are wanting correct pricing and more turn key conditions.
Below is a graph of the real estate market activity comparing the end of July 2023 to 2022.