Kauai Real Estate Update- Home sales for the first 9 months in 2023 compared to this same time last year had a notable difference. When pulling the data I saw something really interesting; despite a decrease in home sales island-wide, it's noteworthy that the median price for some areas on Kauai has shown stability for the first time in 2023. The persistent shortage of inventory has made it challenging to get an accurate read on the Median Price, so it’s quite remarkable that despite the limited number of new listings, which for that part of our market has remained unchanged, we’re seeing the needle move a bit in the positive direction on the Median Price.
With interest rates driving the market whenever we hear that the Feds are meeting to discuss rates it’s an attention grabbing headline. And they did meet during the last week in September and here are some key takeaways: They announced that they will not raise interest rates this month but did leave the possibility open for a hike before the end of the year, they also remained optimistic that rates will decline in 2024.
To get all the news on what was Sold, Just Listed and what went Under Contract last week island wide click here: Kauai Real Estate update October 2 to 8, 2023
Poipu Beach Real Estate Update- Price Reduced, Kiahuna Golf Village lot 8. $80,000 price reduction making this the lowest priced lot in the visitor destination area at $57 a square foot. Oversized for the subdivision at 21,101 sq ft, this lot is an exceptional value with house plans in place and some of the submission work to the County already having been done. To see more on this lot click on this link: Price Reduction Kiahuna Golf Village Lot #8
For an update on all the fee simple activity in Poipu since the beginning of this year click here: Poipu Beach Current Market Analysis.
For the Kiahuna Plantation click here: Kiahuna Plantation Current Market Analysis.
September Second Highest Arrival Numbers At Lihue Airport
In September the Lihue airport had a total of 63,057 domestic passengers, this count is only for the direct flights and does not count interisland arrivals. That figure is down from September of 2022 which was 69,057 but that is not surprising as the year 2022 was known as the year of “Revenge Travel”, the year after the COVID travel restrictions were lifted.
For the first nine months of this year there has been a total of 645,404 passenger count, again that is not the interisland.
In Related News….Direct Vacation Rentals ADR Increases On Kauai
Last week we looked at Hotel Occupancy numbers and this week we have the Vacation Rental numbers which is defined as a rental home, condominium, private room or shared space in a home and are gathered from Airbnb, Booking.com and HomeAway (VRBO).
The state saw a 20% drop in August 2023 at 54% when compared to the prepandemic month of September 2019 which was 74%. The Average Daily Rate (ADR) was up 37% at $279.00 a night.
All four island had lower occupancy numbers, this is the first month of reporting since the Maui wildfires which accounts for their 30% drop. The “unit night supply” droppled 42% and demand dropped 64%.
Kauai had the highest overall Average Daily Rate at $371 which was the second highest increase at 42% with the Big Island having the highest ADR increase at 43%
West Maui Opens Back Up
Sunday was the first day that West Maui opened back up to tourism, this was two months to the day of the Lahaina and Kula fires. The reopening is happening in phases with Kapalua to Kahana opening first. Next will be Mahinahina to Maui Kaanapali Villas, lastly the Royal Lahaina Resort to the Hyatt Regency. Dates have not been given for the next two phases.
Maui tourism went down 57.8% and visitor spending declined by 49%, with tourism being one of the main financial arteries of this island these numbers are not sustainable.
Pushback on reopening. Prior to reopening the group Lahaina Strong delivered a petition to the Governor with over 10,000 signatures asking that the opening be delayed, by Sunday that list had grown to almost 17,000 signatures.
To open the island or not is a debate I’ll personally stay out of. What does resonate with me is to “Travel Pono”, which means to do so with respect and kindness.
Queens Bath On North Shore Closed
The Kauai Fire Department as closed the gate to get to Queens Bath, this will extend into 2024. During the winter months the North Shore will get higher surf which makes this popular tourist attraction very dangerous.
Queen’s Bath is found in every Kauai tourism book, this wildly popular spot is a large natural pool the size of several swimming pools carved into a lava rock. In short, it’s Social Media gold. With the popularity of this spot has come a lot of traffic and drownings resulting in the County deciding to shut the spot down during winter.