Kauai Real Estate Update- Last week I represented the buyers in their purchase of Halelani AA203 for $505,000 which was $20,000 over the list price. My listing, Halelani G204 went into escrow last week as well, listed at $479,000 it had multiple offers and is in escrow for over the list price. For a complete list of what Sold, was Just Listed and what went Under Contract last week on the island of Kauai click here: Kauai Real Estate Activity August 29 to September 4, 2022.
Poipu Beach Real Estate Update- Poipu Sands 424 is now escrow after only 4 days on the market. The owner priced this property perfectly, right in line with the comps and we got some really great activity right out of the gate. This unit was renovated, had a great single level floor plan and had great ocean views.
For a Poipu Beach fee simple market update click here: Poipu Beach Fee Simple Current Market Analysis
For the Kiahuna Plantation click here: Kiahuna Plantation Current Market Analysis
Former St. Regis In Princeville Legal Woes
“1 Hotel Hanalei” was supposed to open last February as a luxury sustainable resort. Located at the former St. Regis in Princeville, the renovations were to turn this hotel into a superior luxury experience with rooms going from $1,500 to $2,000 a night, premium rooms for more than $20,000. However the project has been facing some construction problems that are turning into a legal battle.
Layton Construction was hired to do the renovations in October of 2020 but alleges that there were significant defects to the property that were known, or should have been known, to the owners that was not disclosed to them. They are now suing for $58 million in damages.
Island Glass has filed a lien for $3.5 million against the owners and Layton Construction.
The 1 Hotel Hanalei Bay website currently is accepting reservations starting January 15, 2023.
Kauai Marathon Is Back
2,200 runners attended the Kauai Marathon in Poipu Beach this last weekend. Champion Tyler McCandless of Colorado set a new record of running the 13.1 half marathon course in 1 hour and 6 minutes. Pedro Pais Abreu of California ran the full 26.2 mile course in 2:59:58. The morning started off with a few sprinkles but gave way to hot and muggy weather. 2,282 people registered which is a record number, they represented 42 states and 15 countries.
Kauai Real Estate Year To Date, No Crash Indicated
I’ve been waiting for these August numbers because they are the first to reflect the impact of the rise of the interest rates. In early May the interest rates rose and Kauai real estate came to a full stop. For the next couple of months sales could have been attributed to loans that were started before the interest rates rose. So, which way was it going to go we wondered?
While some buyers speculated that a crash similar to 2007 was coming that didn’t make sense. We didn’t have the glut of housing inventory we did then or the unstable lending practices.
The August numbers are showing the trend of rising Median Prices and lower sales due to a lack of inventory continuing. So for Buyers the crash and a glut of inventory here on Kauai has not happened, for Sellers their overpriced properties are not selling and for the first time in a long time we’ve been seeing price reductions. But those reductions are from Sellers that were testing the market.
Below is a graph of the Kauai real estate activity at the end of August 2022 compared to this same time in 2021.
The only area where prices decreased was on the South Shore and this is due to the huge number of sales at the Kiahuna Plantation, these leasehold condominiums are hundreds of thousands of dollars lower in price. Currently the lowest priced fee simple condominium in Poipu is a 452 studio at the Prince Kuhio for $725,000.
