The Kauai condominium market has little patience for sellers who price too high. There are simply too few buyers and too much inventory for an overpriced listing to get much traction, and those homes tend to sit. Accurately priced condominiums can still spend time on the market, but they are far more likely to be the ones that eventually sell.
World events continue to shift almost daily, and buyers are responding with more caution and more time spent deciding. Even so, sales are happening. In many respects, this is when the real opportunities show up: when inventory is available and sellers are in tune with the market instead of ahead of it. Markets rarely reward those who follow the crowd. By the time buyers rush in, many of the best opportunities are already gone. Ignore the noise. Follow the data. So let’s start with the numbers.
This video was filmed at my gorgeous listing, Pili Mai 4J. View the full listing details here.
Sales by Region
At the end of July, island wide sales totaled 136 condominiums compared to 169 last year, a 19.36% decrease.
- South Shore (mostly vacation rentals): 49 sales compared to 48 last year, a 2.08% increase
- North Shore: 33 sales compared to 53 last year, a 37.74% decrease
- Lihue: 36 sales compared to 45 last year, a 20% decrease
Lihue followed the same trend we’re seeing in the home market, which makes sense since it has the highest concentration of residential condominiums, meaning they can’t be vacation rented. But there’s good news buried in Lihue’s numbers, and it shows up in median price.
In July, 27 condominium sellers changed their price, and all but two lowered it. One of the two increases was tied to an auction, so in reality, only one seller actually raised their asking price.
Condominiums have had a challenging few years. Rising insurance costs, increasing HOA dues, financing hurdles, and a softer market have forced condo owners to pay close attention to what buyers are actually willing to pay. As a result, I’ve found condominium sellers to be a bit more in tune with today’s market than residential sellers, who are still making that adjustment. I covered that in my previous market update.
Median Prices
What’s encouraging is that condominium median prices are beginning to show signs of firming up, and Lihue in particular surprised me.
- Island Wide: $847,500 compared to $875,000 last year, a 3.14% decrease
- South Shore: $1,050,000 compared to $1,100,000 last year, a 4.55% decrease (great news)
- North Shore: $999,000 compared to $1,081,000 last year, a 7.59% decrease
- Lihue: $630,850 compared to $525,000 last year, a 20.16% increase, despite the drop in number of sales
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Aloha!
Lynda Gill RS Lic. 63088
Hawai’i Life Real Estate Brokers 808.346.0056
LyndaGill@HawaiiLife.com
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