2011 Kauai Real Estate Sales

2011 Kauai Real Estate Sales

 

 

by: Coreen S. Sarabia, Realtor/Broker, ABR, CIPS, CRS, RSPS, e-Pro

Kauai Home Sales

The number of home sales on Kauai in 2011 was nearly identical to 2010 while the median price dropped another 9% and the dollar volume increased by over 16%!   This is the kind of year I love to write about because you have one segment of the market virtually unchanged while two other segments are in plus and minus territory. 

The statistics that we Realtors are able to obtain from our Multiple Listing Service is not always 100% accurate so it sometimes becomes necessary to work with raw data, which is very time consuming.  The following information was compiled after reviewing every single home sale on Kauai during 2011.

Overall, every section of the island except the north shore had one or two sales in the under $200,000 category.   The highest sales in the Lihue area were in the low $700,000s with every other section of the island having at least one sale over a million dollars.   The north shore definitely took the cake with high dollar volume and number of homes sold in the over $1,000,000 segment of the market.

This is a summary of sales starting from one end of the island to the other.

West Kauai – from Kekaha to Hanapepe:  

The lowest priced home sale was in Hanapepe for $120,000.   It was a 3 bedroom, 2 bath, 1,152 sq. ft. home on a 6,501 sq.ft. lot and it was Hawaiian Homes leasehold land that requires special Buyer qualifications.   The largest concentration of homes (11 units) sold were in the $200,000-$300,000 price range.  A legal vacation rental (in this area which is not in the Visitor Destination Area (VDA) ) located on Kaumualii Highway across the street from the beach sold for $600,000.  The largest sale was for a restored plantation manager’s home also located across the street from the ocean that sold for $1,075,000.    There were a total of 30 sales on Kauai’s west side.

 

South Shore – Kalaheo to Poipu: 

The most active price range was between $300,000-$400,000 with 18 reported sales.   The second most active price range with 13 sales was between $500,000-$600,000 which included sales of brand new homes at the Koloa Creekside Estates next to the Koloa Neighborhood Center.  The $200,000-$300,000 and $400,000-$500,000 price points both had 11 sales recorded respectively.   Homes located near Baby Beach, on the Kiahuna Golf Course & Lanai Villas all sold between $800,00-900,000.   And the Wainani golf course homes that were auctioned in December of 2010 recorded between $870,000 to $1,000,000 during the first and second quarter of the year.   There were three oceanfront homes that sold for between $1,950,000 to $4,125,000.

 

Central – Puhi to Hanamaulu :

Sales were fairly evenly distributed between each $100,000 increment in the $200,000 to $500,000 segment.  With the exception of one sale just above $500,000, transactions pretty much disappeared above this price point except for 2 homes in the Puako and Pikake subdivision which recorded for $710,000 and $715,000.

 

East – Wailua to Moloa’a :

There were 35 home sales in the $300,000 to $400,000 sector  alone which amounts to more than all the residential sales on the west side and nearly as many as all of the Lihue district.   The east side’s 116 transactions topped any other area on the island.  There were 6 homes that exceeded one million dollars,  all either offering acreage with views or a beachfront location in Moloa’a.  

 

North – Kilauea to Haena:  

The north shore was the only section on Kauai where sales under $200,000 didn’t occur.   The lowest sales price was $335,000, which along with 6 other sales totaled the number of homes sold under $400,000 on the north shore.   The least expensive house in Princeville was $410,000 and the lowest price paid for a home on acreage was $710,000.   There were two other properties with acreage that sold with only guest house rights just above and below the $600,000 mark.   What is really amazing is the whooping 30 units sold that exceeded one million dollars!   I had to further break down the price points since the span was quite wide.   There were 14 homes that sold between $1M-$2M, 7 homes between $2M-$3M, 2 homes between $3-4M and $4-5M and 5 properties over $5M.   In 2010, I sold the most expensive home on Kauai for $5M and in the first quarter of 2011 there were 3 homes that sold for $5.5M, $7.5M and $8.5M!  Then, in November there was a $13,375,000 Hanalei beachfront property and a Kilauea Secret Beach Bluff home that sold for $20,000,000!  Both were by way of cash.                                         Posted 1/29/2012

Kauai Land Sales-

There were 97 vacant land sales on Kauai during 2011.  In terms of number of units sold, land comes in last place behind homes and condominiums.  However, the median price for vacant land is higher than the median price paid for condominiums.  

Two prominent reasons for this sluggish sector is 1) Financing is difficult to obtain and 2) why build when you can often buy an existing house for less than the cost to start from scratch? 

Here is an around the island look at what land sold on Kauai.

West (Kekaha to Hanapepe):

Nothing. Nada. Zero.

South (Kalaheo to Poipu):

Poipu Beach Estates captured 39% of the land sales on the south shore followed by a 26% share at Kakela Makai in Kalaheo.  The majority of these transactions were in the $200,000 to $400,000 price range.  In the $500,000 to $600,000 segment there was a 6-acre parcel in Kalaheo that sold for $525,000 with cash and owner financing.  A lot at the upscale Kukuiula development that originally sold in 2007 for $1,000,000 was purchased by a cash buyer in March for $550,0000.  There were 3 high-end sales of $1,000,000 or more in Poipu.  The first is a rare type of property in the Poipu/Koloa area in that it had over 19 acres (total of 3 parcels) with golf course frontage, Waikomo stream frontage, ocean and mountain views and no CC&R’s.  Zoning allows for 2 homes and 2 guesthouses.  It was a cash sale for $1,950,000.  The other two sales were both at Poipu Aina Estates and if you are not familiar with this project, here is the history.  Poipu Aina consists of 17 homesites on the Koloa By-Pass Road and a working sod farm was incorporated into the development to comply with the agricultural zoning. Unfortunately, the California developer missed the market and ended up losing 15 of the 17 homesites.   The 2-3 acre parcels originally were priced between $1,350,000 to $1,550,000.  One sold to a Kauai resident for $1,058,000 in June 2009 and another was sold to one of the principals.  Public records show the bank foreclosed on the 15 lots in December of 2010 for $3,000,000 and in March 2011 it sold to an LLC for $4,500,000.  I called the buyers agent to inquire whether the new owner plans to sell the inventory and was told not until the market recovers. The one parcel that was owned by the former developer and not part of the foreclosure sold in October of 2011 for $1,000,000.  Interestingly enough, it is back on the market for $525,000.   I called the listing agent to verify this and was told it was correct though no further explanation was given.  

Central (Puhi to Hanamaulu):

Eight of the ten land sales were in the Pikake subdivision with prices starting at $167,500 to a high of $328,000.   The other two were: 1) a lot in the neighboring Puako subdivision and 2)a commercial Kukui Grove Village West property.  Cash was the purchasing method in 70% of these transactions.

East (Wailua to Moloa’a):

Sales on Kauai’s east side was a sprinkling of subdivision type lots in the 5,000 to 12,000 square foot size selling for $43,000 on a bank owned REO to $185,000 for a Kealia Town Tract property.   Acreage started in the lower $200,000’s to just above $500,000.   There were two adjacent oceanfront parcels in Aliomanu that sold for $759,000 and $779,000.  In the above $1,000,000 segment there were two Kealia Kai 5 and 7 acre lots that sold for $1,225,000 and $1,295,000 respectively.  Of the 30 sales, 3 were financed by conventional loans, 3 were done with owner financing and the remainder were cash transactions.  

North (Kilauea to Haena):

The least expensive lot on the north shore was in Wainiha on the Powerhouse Road, which sold for $80,000 and is zoned conservation.   The price then jumps to $200,000 and above for a Kilauea or Princeville subdivision type lot.   A golf course lot in Queen Emma’s Bluff sold for $435,000 and  lots within walking distance to Hanalei Bay went for $550,000, $713,000 and $816,000.   North Shore acreage started at $385,000 for 2 acres in the Puu Pane Ag subdivision and went up to $800,000 for something with an distant ocean view.   A lot across the street from Anini Beach sold for $725,000 after being on the market for 1,704 days.  The prime vacant land sales were either Hanalei beachfront or ocean bluff Anini Vista or above Secret Beach were prices were in the $2,000,000 to $3,000,000 range.   As with the rest of the island, all were cash transactions except for one with owner financing, one with partial owner financing and one that was a combination of 1031 funds, cash and conventional financing.                                                                                 Posted 2/14/12

Kauai Condominium Sales - 

The starting price category for home and land was up to $200,000 as transactions generally began above $100,000.  However, with condominiums I added a lower category so I could segregate the sales that were under $100,000 as there was a significant number in this segment.

The south shore commanded 44% of the island's total dollar volume.  Sales at the oceanfront Whalers Cove and the first closings at the brand new Koloa Landing contributed to this leading position.  The south shore also had the highest median price for a condominium at $460,000.   

The Lihue district had the largest number of transactions due in large part to closings at Kauai Beach Resort which accounted for 56% of the 101 units sold in this area of the Garden Island.   All the Kauai Beach Resort sales were under $100,000  and represents 72% of all sales islandwide in this price segment.

Islander on the Beach and Waipouli Beach Resort accounted for 66% of the sales on Kauai's east side.   Nearly all were either short sales or bank owned properties and many sold at 50% of the original price paid in 2005.

Thirty three percent of the north shore sales were in the $300,000-$400,000 price range.   The median price was $355,000 for a condominium in the Princeville area.

The following table shows all the condominium sales on Kauai during 2011:



Contact Information

Coreen S. Sarabia, Broker/Realtor, RB-15579
Kauai Realty Incorporated
2403 Ulu Maika St.
Lihue HI 96766
Direct: (808) 822-4004
Cell: (808) 651-4001
Fax: 1-720-625-6028