There’s been a definite slowdown in the real estate market here on Kauai, I don’t see this as bad news but the market that we’ve been in for the last two years has definitely shifted. This cool down we’re seeing is necessary. There’s no way we could sustain year over year 40% increase in housing prices like we’ve had; instead we are going back to pre-pandemic 2019 numbers. The rising interest rates have shrunk the number of buyers resulting in longer days on market, a decrease in the number of offers, and price reductions all of which we are not used to seeing. What is stopping this from being the 2008 meltdown is this: The driver for that bust was the subprime mortgage meltdown, risky loan products, and borrowers that had gotten loans they were not qualified to get. At that time we also had a housing surplus which is not what we have today, in fact it’s just the opposite. The lending guidelines are very tough, the mortgage industry is on solid ground. Additionally, many of the past sales over the last two years have been cash.
Kauai Housing Market Update
On to our Residential numbers, which, for a while, will not reflect the current market. We’re looking at what sold year to date at the end of June 2022 and comparing that to this same time last year.
The numbers are down across the board for the number of homes that have sold, this due to the lack of inventory. Island wide the number of homes that sold Year To Date 2022 is 302 compared to 398 in 2021. On the South Shore 94 homes have sold compared to 105 last year. On the North Shore 66 homes have sold and 105 had sold this same time last year. In the Lihue area it stayed the very same with 27 homes selling year to date for both 2022 and 2021.
It’s the exact opposite for the Median price for a home on Kauai, in all areas these numbers are up and this is also due to lack of inventory. The Median Price for a home on Kauai at the end of June 2022 is $1.2 million, it was $1,076 the same time last year, this is a 11.52% increase. The South Shore is now at 1,327,500 compared to 1.2 million this same time last year representing a 10.63% increase. The North Shore had the highest gain in the median price at 38.24% coming in at 2,350,000 million compared to 1.7 million. Lihue is now at $930,000 which is up from a year ago when it was 735,000 a 26.53% gain.
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