Balmy tropical weather greeted the New Year and the many visitors to Kauai. Can it be 2016 already? The short answer is YES, and like the sands of time real estate sales push on too.
Before we jump into our Kauai real estate review for the first month of 2016 you may wish to visit our webpost on 2015 summary of the Kauai real estate market. Where we saw an increase in sales which, in my opinion, was due to a cautiously optimistic national outlook. Sparked byincreased job growth of greater than 2.8 million positions, stock market increases and a general well being about the economy and their own personal wealth.
However, it’s 2016 and for the island as a whole the sales volume in January exceeded 2015 numbers by 5%. There were significant increases in land and condo sales which offset a 12% decline in residential sales for the month.
Despite the stomach churning market gyrations in stocks, consumer confidence remains strong. As my economics professor told me years ago, “the stock market has accurately predicted an economic downturn 9 out of the last 5 times”.
JANUARY SALES HIGHLIGHTS BY PROPERTY TYPES
There were a total of 29 homes sold this month compared to 33 this time last year. However there was a 5% increase in dollar volume. Koloa district, which the resort community of Poipu is located saw the greatest dollar volume in sales increase from 3.9 to 6.3 million of all the districts.
THE KUKUIULA FACTOR
The continued trend to purchase and live in the resort community of Kukuiula has driven sales volume in the Koloa district and we see this continuing for years in the future. There is no doubt that it skews the median home prices in Koloa district where homes outside the boundaries of Kukuiula are easily 50% less.
HANALEI – HOLLYWOOD’S TROPICAL PLAYGROUND
With house listings rivaling prices only seen in major cities worldwide and the demand to go with it. We too are amazed at the listing prices in this district. It is clear that there is a segment of the population that wants the best that the island has to offer and they are willing to pay.
KAUAI CONDO SALES
There were a total of 35 condo sales on the island this month with 37% sold in the Koloa- Poipu area and 34% in the Lihue district.
With a whopping median sales price of $774,000 for the Poipu market it can be daunting for someone looking for Poipu condos for sale. However don’t despair, read our link in the last sentence and see that there are beautiful properties available at reasonable prices.
Again the high median price for condominiums in this district is due to the Kukuiula effect. With the recent groundbreaking of Kukuiula’s first condominium project called Kainani we expect this trend to continue.
KAUAI LAND SALES
A total of 8 parcels of vacant land sold this month. Partly due to limited availability outside of high end developments and the reluctance to build in an environment of high labor and materials cost. Investors recognize there is still value to be found buying an existing home.
WHAT LIES AHEAD
We are expecting growth to stay strong again in the Poipu condo market. In the demographic of young retirees we will see more sales and purchases of vacation condos. They will continue to capture some of the appreciation that they have been accumulating in their primary properties and will transfer some of that appreciation into making “lifestyle” acquisitions.
RECENT TURTLE COVE REALTY ACTIVITY
Realtor Ray Gordon put a beautiful Kukuiula lot in escrow this month, you can read about it here.
Realtor Broker Lee Morey recently put a beautiful Regency at Poipu Kai into escrow. It is a unit that was out of the vacation rental program and was meticulously cared for by the seller.
Let us know how we can help you with your real estate needs. Turtle Cove Realty is a boutique brokerage firm that specializes in all areas of real property on the southshore. You can find us everywher on line.
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