UPDATED | July 24, 2020:
When it comes to the coronavirus, Hawaii currently has one of the lowest mortality rates in the nation and continues to make substantial efforts to flatten the curve, with the lowest number of total cases among all 50 states (as of July 24, 2020). Real estate professional Neal Norman recently noted that there have been “no reported cases on the island of Kauai between April 7 and June 13.”
Q2 2020 Kauai Market
However, due to travel restrictions, Kauai’s overall real estate residential sales volume fell 24% from $149.8 to $113.6 million, according to a recent Kauai market report published by Neal Norman. “North Shore Q2 residential sales volume actually increased by 54.7% with $56.2 million of volume,” noted Neal, “however, this number is skewed by a single large beachfront Hanalei transaction that tallied in at $36.75 million.
“I feel so blessed to be here on this island that has been relatively Covid-free, and where there is great weather, an abundance of sunshine, fresh air and outdoor activities to keep us healthy and busy,” writes Brenna Harrington in her recent article Kauai South Shore Housing Update, which details current data for both Koloa and Poipu real estate activity.
Kauai’s low number of cases has been holding steady for quite some time, but visitor arrivals threaten to upset the delicate balance Kauai residents have worked hard to achieve. For non-residents, virtual showings, videos and 3-D tours are one way to view properties on Kauai, until such time as the quarantine restrictions have been lifted.
According to Hawaii Governor Ige’s recent 10th emergency proclamation, new arrivals to the state are still required to adhere to a state-mandated 14-day quarantine. The document extends the mandatory 14-Day quarantine period for all arriving international and out-of-state passengers to September 1, 2020.
Travelers arriving in Hawai‘i will undergo a mandatory screening process at the airport. For non-residents looking to purchase a home in Hawaii in the coming months, there’s still no date set for a lift on these travel restrictions.
Virtual Home Buying & Selling on Kauai
For Hawaii residents looking to buy a home, home showings are allowed with appropriate social distancing and mask measures in place. We are not conducting open house events, but rather, property viewings are generally done by appointment only. Contact your Hawaii Life agent for specific procedures by listing.
For non-residents or those unwilling to travel within the state, Kauai’s Christian Weis has developed step-by-step Virtual Home Selling and Virtual Home Buying programs to help her clients on Kauai. Check out her recent blogs at those links where she’ll take you through the entire process for buying and selling a home on Kauai.
Christian has outlined an 8-stop process for both buyers and sellers. From initial online consultation to the mobile closing process, Christian will guide you through every step along the way. Best of all, her programs are completely customizable to your unique needs and location.
Kauai Opportunity Zones – Proposed Extension to 2030
In recent weeks, Kauai real estate agent Lori Decker reported on a proposed extension to the federal Opportunity Zone program introduced in 2019 by the IRS. Newly proposed legislation precipitated by the global pandemic would extend the program to 2030.
Lori has been consistently reporting on the Kauai Opportunity Zones created by the Tax Cuts and Jobs Act (TCJA), passed in December 2017. The TCJA added more than 8,700 Opportunity Zones in all 50 states to the tax code. Designed to spur economic development, this program also introduced key tax incentives to benefit taxpayers who invest in Opportunity Zone properties.
“The current Opportunity Zone legislation allows investors to defer and lower the tax owing on long-term and short-term capital gains earned from the sale of shares, a business, and real property to 2026, provided the gains are invested in certified opportunity zones,” said Lori in her blog.
Lori began sharing info with her clients about these appealing Kauai real estate investment opportunities. Of particular interest to many investors is Kukui’ula on Kauai’s South Shore. For a brief background on the legislation, you can read Lori’s article published in October 2019: Sean Parker’s Opportunity Zones: A Hawaii Perspective.