Kauai Real Estate Update- To find out what Sold, was Just Listed and what went into escrow on the island of Kauai for last week click here: November 21 to 27, 2022 Island Wide Real Estate Sales
Poipu Beach Real Estate Sales- That gorgeous 3 bedroom 3 bath unit at Koloa Landing that I did a video of last week is in escrow for $2,450,000 but that is not the big Poipu Beach Real Estate news. A sale that surprised me was a Golf Course frontage unit in Pili Mai #10I which is a 3 bed 2.5 bath condominium. It was listed at $2,125,000 and it went into escrow last week, to see photos of this unit click here: Pili Mai 10I For a complete list of the fee simple real estate activity on the island of Kauai year to date click here: Poipu Beach Fee Simple Current Market Analysis
Kiahuna Plantation Real Estate Update- for the list of the leasehold Kiahuna Plantation activity click here: Kiahuna Plantation Current Market Analysis
Pre-Construction Sales Trailer Now In Poipu
Kauanoe o Koloa is the condominium complex in Poipu Beach that is right near Pili Mai. They have been doing “pre-construction” selling on their units with prices that range from $1,199,000 to $1,649,000. They now have a sales trailer at the corner of Kiahuna Plantation Drive and Pau a Laka. I spoke to one of their sales reps who said that they are going to start pouring the concrete slab foundations but they do not have their building permits yet.
The groups Save Koloa and Malama Mahaulepu have filed environmental lawsuits against the project, there was also active picketing and police presence at the site but I have not seen that activity for several months.
More news when I have it.
Kauai Economy In Recovery Mode; Unemployment Rate Plummets
When the figures came in for the Kauai Economy it was better than what had been projected. The unemployment rate on Kauai was 6.3% in October 2021 but at the end of October 2022 it fell to 4% which is more inline with the National unemployment rate of 3.7% which is down from 4.8%. In October 2020, when we were right in the middle of the pandemic, our rate was 17.3%.
Not surprisingly the two sectors that had the biggest gains were food service, drinking establishments and visitor accommodations. Additionally; Arts & Entertainment added 1,300 jobs, retail added 200 jobs, professional/business service 200 and construction/manufacturing 100.
The sectors that lost jobs were: Wholesale Trade, State Government and Financial Activities.
The State of Hawaii unemployment rate at the end of October 2022 is at 3.5%.
Kauai October Hotel Numbers and Lihue Airport Data
In October the number of visitor arrivals at the Lihue Airport was up 13.7% and their spending was up 21.9% when compared to October 2019. 109,158 visitors arrived last month compared to 102,662 in 2019, spending was at $173.0 million compared to $141.9 million in 2019.
The Kauai hotel numbers are up as well. Their RevPar (revenue per available unit) was up 41.4% from October of 2019 coming in at $287 a night. The ADR (Average Daily Rate) for hotels across the island is up 43.6% from October of 2019 coming in at $364 a night, occupancy was at 78.7% which is a 12.6% increase from October 2019.
National Home Sale Numbers End Of October, 2022
The Chief Economist for the National Association of Realtors Lawrence Yun stated: “More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher. The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years." He added: "Inventory levels are still tight, which is why some homes for sale are still receiving multiple offers. In October, 24% of homes received over the asking price. Conversely, homes sitting on the market for more than 120 days saw prices reduced by an average of 15.8%."
Here are some key highlights to the NAR October National data:
- The Median Price for all housing types is up for the 128th consecutive month which is the longest streak on record. It’s now at $379,100 which is a 6.6% gain from October 2021 $355,700.
- The number of sales for all housing types was down for the ninth straight month by 5.9%. (4.43 million compared to 6.19 million last year).
- The number of properties for sale is down 0.8%. Unsold inventory is at 3.3 months October 2022 compared to 2.4 months in October 2021.
- Cash sales were at 26% in October 2022, the second home buyers purchased 16% of the inventory which is up from 15% in September 2022.
- Foreclosures and Short Sales were 1% of the number of properties sold which is down from 2% in October of 2021.
- Distressed sales5– foreclosures and short sales – represented 1% of sales in October, down from 2% in September and identical to October 2021.
Lawrence Yun stated "Mortgage rates have come down since peaking in mid-November, so home sales may be close to reaching the bottom in the current housing cycle." Time will tell if this proves to be true.