Kauai Real Estate Update- It was a very slow week for real estate, I think the election slow down is still impacting the sales and then we had Thanksgiving. To find out what Sold, was Just Listed and what went Under Contract last week click here; Kauai Real Estate Update November 25 to December 1, 2024.
Poipu Beach Real Estate Update- Christmas decorations are starting to pop up and I thought this “Slipper Tree” is just the cutest thing. It’s down in the pool area at the Hyatt. For a complete list of all the fee simple real estate activity in Poipu since the beginning of this year click here; Poipu Beach Current Market Analysis
For the Kiahuna Plantation Real Estate Update click here for that; Kiahuna Plantation Current Market Analysis
Southwest To Cut Hawaii Flights
Southwest Airlines is making some big changes in both expanding and eliminating both interisland and Hawaii to the mainland routes, this will become effective in April through June of 2025.
Here is how the Kauai routes will be impacted;
✈️ Honolulu to Lihue- Reduced from 42 to 34 weekly flights
✈️ Lihue to Los Angeles- Summer flight comes back but instead of 2 daily flights it will be 1 daily flight starting June 7 to August 3, 2025
✈️ Southwest will be expanding their summer routes with two overnight Hawaii Flights;
✈️ Honolulu to Los Angeles
✈️ Lihue to Las Vegas
Smaller Homes the new trend?
During COVID the tiny home trend went by the wayside with the family home being used as a school and oftentimes the workplace. But it looks to be making a comeback as an answer to the rising costs of construction and first-time homebuyer demand.
Since 2015 the Median size of a home for new builds has fallen from 2,320 sq ft to 2,036 in 2023. For the first quarter of 2024 it was back up a bit to 2,140.
Home sizes are predicted to continue to shrink for first time home buyers and the homes will have some of the hallmarks of the 1950’s starter homes. Buyers are adamant that they do not want to share a wall, having their own detached home it a high priority.
Sitzer/Burnett Real Estate Commission Lawsuit Settled
On November 27th Judge Stephen R. Bough signed the settlement agreement on the biggest commission lawsuit in history. New policies to comply with this settlement went into effect for Realtors nationally on August 17th but up until now the National Association of Realtors didn’t have a definitive answer on if their settlement terms would be agreed on or not.
This is what I’ve seen the biggest changes that have taken place since August 17, 2024;
The offer of Seller compensation has been removed from the MLS. Agents can ask a listing agent if compensation is being offered and the amount of the compensation can still be advertised but not on the MLS.
Before seeing a property either virtually or in person the Buyer needs to sign a Buyer representation agreement which will has how much the Buyer will pay their agent in commission and dates of how long that Agreement is in place. If the Seller is paying a commission, then this amount (either in full or in part) will be taken care of by the Seller. If the Seller is paying no compensation, then this is paid for by the Buyer.
Judge Bough wrote an 88 page document on his reasoning for signing the settlement. Here are the key takaways on what happened;
- NAR said the settlement was “hard fought” and the judge agreed, calling out the financial terms and “significant policy changes.”
- An objector took issue with the settlement amount, but plaintiffs attorney Michael Ketchmark said “we extracted every dollar out of the defendants that we felt they were capable of paying.”
- The judge said if the DOJ has further issues related to the settlement, it will need to bring them to his court.
Kauai Real Estate Year To Date
It’s the beginning of December and we’re looking at the first 11 months of this year and comparing it to this same time in 2023.
What is happening in Lihue for home sales, it’s the only area that is down in both the number of homes sold and it’s Median Price? I did a little digging and I believe I found the answer. Unlike the South and North Shores, where properties can be vacation rented, Lihue buyers are primarily full-time residents. For this market, the price ceiling seems to be $1 million, and this year, there wasn’t the same availability of homes under $1 million that we saw in 2023. That lack of inventory is showing up in the numbers.
Kauai condominiums continue their downward trend on the number of sales and, this month we’re also seeing a decrease in the median price on the North Shore. Looking at condominium sales for the first 11 months of the year compared to the same period in 2023, it’s clear condos are struggling to gain traction. With challenges like rising HOA dues from increasing insurance rates and assessments at some complexes, it’s been a tough year for this segment of the market.
