Kauai Real Estate Update- For the Kauai Real Estate activity for last week you’ll notice the “Kauanoe O Koloa” complex pretty much dominates the list. This is the new condominium complex in Poipu Beach (near Pili Mai) that is currently under construction and all these are Pre-Construction Sales which means that someone reserved a unit but no money has been put down on it. The company decided to upload all the reservations at one time. To see the list click here: Kauai Real Estate Update April 24 to 30, 2023
Poipu Beach Real Estate Update-
I am pleased to announce that I have just listed 2868 Milo Hae Loop in Kiahuna Golf Village, a stunning home that exudes luxurious living. Boasting 4 bedrooms, 4 bathrooms, a pool, spa, and breathtaking horizon ocean and golf course views, this property is a true gem. Perfect for those seeking a full-time residence, a vacation rental or a combination of both. In the last two years the owners have further elevated this home by investing over $500K in renovations. Listed at $3.4 million, click here for more details: 2868 Milo Hae Loop.
For a Current Market Analysis for the fee simple market in Poipu Beach click here: Poipu Beach Current Market Analysis
For the Kiahuna Plantation click here: Kiahuna Plantation Current Market Analysis
Tourism Numbers In March Near PreCovid Numbers
March of 2023 tourism numbers were down only 3% from the Pre-Covid year of March 2019. Travelers from the U.S. increased by 14% but Japan travel is down by 70%.
While the arrival numbers might be down spending is up 23% at $1.84 billion compared to $1.5 billion in March of 2019.
Here are the numbers for arrivals;
Numbers for spending;
Kauai up 46% at $222.5 million
Oahu up 9% at $731.4 million
Maui up 40% at $620 million
Hawaii up 18% at $237 million
Hawaii Tourism Authority Responds To Slashed Funding
It’s actually more than slashed, the HTA was left off the State’s budget all together and told to use the $30 million that they have left from the unspent American Rescue Plan Act. Bill HB1375 was proposed to eliminate the HTA and replace it with Office of Destination Management. The thought is that it’s not needed, or wanted, to promote Hawaii as a destination. That is being done so well the challenges now are how to manage the impact that the massive amount of tourism is having on our State.
Trouble is HB1375 was debated for hours without coming to any kind of an agreement. So for now they took the $75 million request from the HTA out of the budget and told them to use the funds they have. To keep updated on this bill click here: Track Bill HB1375
Hawaii Real Estate Market Stabilizing
Island wide a meeting of various Real Estate industry experts ranging from Principal Brokers to the President of several Real Estate Boards met to discuss the status of our real estate market. After 3 years of intense real estate activity the interest rates dramatically increased in May of 2022 and the market has been working itself out since then.
So what is happening in the State of Hawaii?
Buyer’s Or Seller’s Market
After 3 years of the Sellers being in the drivers seat we are now “somewhere in the middle”. Some properties are seeing activity from days gone by with multiple offers and selling over the listing price, but these are not as frequent as they had been.
Inventory is lower than any of them would like to see and number of new listings lower than they were last year. For those that have 2% & 3% interest rates they are not going to be selling as they cannot duplicate that rate.
Looking ahead, the hope is that interest rates will continue to soften, when they went to the mid 5% market activity picked up.
Below is a graph of our Kauai Real Estate sales comparing 2022 to 2023. Lack of inventory is impacting our sales and skewing the numbers. The condominium market continues to pick up as Buyers are priced out of the housing market.