First Quarter Kaua’i Real Estate Market Report

January to March 2015

by Coreen S. Sarabia, Realtor/Broker


 

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                                                Photo by: C.Lyden

HOMES

First Quarter home sales volume jumped up nearly 82% from the same time period in 2014.   Sixty seven percent of the dollars spent was in the Hanalei district on the north shore.   Of the $134,753,350 recorded on the Garden Island, over $90,000,000 was spent  for homes located between Kilauea and Haena.   Twenty three of the north shore houses that sold during this period recorded at over $1million and represented 25% of the sold inventory islandwide.  Hanalei is definitely the hot spot for high end sales. Of the 23 that sold for over  $1million dollars, nearly half (11) were in Hanalei.  Further, of these million dollar transactions, 6 properties or 26% of this high end segment sold for over $9,000,000. Four adjacent beachfront parcels  totalling $43,500,00 were sold to one buyer, reportedly the owner of Oakley sunglasses.  

 

In terms of units sold, the average across the island showed a 5% drop, however, the Hanalei district posted a 43% increase from the same period in 2014.  When it comes to median price, the first quarter figures show a 35% increase to $701,000 for a home on Kauai.  However, when taking a closer look at district medians there is quite a difference in the largely owner occupant areas on the west side where the median is $482,500 and the central and East side  where medians are $510,000 and $525,000 respectively.   The two sections of the island that include resort areas are considerably higher with a median of $740,000 in the southern district where Poipu is located and the north shore where Princeville and the nearby aforementioned  beach community of Hanalei contributed to a median price of $1,300,000.

 

CONDOS

While home sales experienced a double digit increase in dollar volume, condo sales increased by 6% and were in negative territory in the Koloa and Kawaihau districts.  Central Kauai and the north shore had nearly the same number of sales but again the north shore showed strength in dollar volume with over $16m compared to just under $7M in the Lihue area.   The median price for a condominium on Kauai is $357,500 and as with houses the gap in owner occupant areas versus resort areas is noticeable.   The west side of the island is virtually excluded from the condo market as there is only one small project in Waimea and there were no sales there.   Condos located in the central and eastern sections of the island have median prices between $225,000 to $232,000, while the southern median is $438,500 and the northshore is $607,500.   

 

 

LAND

Land sales are the weakest segment of the real estate market on Kauai.   Dollar volume is down by 29% across the island with only one area that showed an increase...the east side.   The Kawaihau district also improved in number of lots sold and the median price rose by over 38%.   A notable number of sales were seen in the troubled Kulana project.  This development has been plagued for years with incompleted infrastructure resulting in the inability of owners to obtain building permits.  In March, seven 2-4 acre parcels sold for $80,000 each and there is rumor that the issues associated with this subdivision will be resolved soon.