With its breathtaking mountains-meets-ocean landscape and small beach town lifestyle, Hanalei leaves little to wonder why this Hawaiian town continues to maintain its allure.
As we transition into the new year, key sales statistics shed light on the dynamics of Kauai’s iconic north shore beach community. With a focus on active listings, contingent properties, and sales data, let’s delve into the notable trends shaping the Hanalei real estate scene:
Current Market Snapshot
As of publication date, there are 3 active residential listings and 2 contingent residential properties, one of which is the notable $18M new luxury construction home, 4421 Malolo Road, that was recently featured in the Wall Street Journal. Since the start of 2023, there have been 7 residential sales, ranging from $1.7M – $9.425M, with a total sales volume of $29,250,000.
Click here to view what’s active, what’s currently in escrow, and what sold in 2023
Year-Over-Year Analysis
In 2022, there were a total of 20 residential sales, with sales prices ranging from $1.65M – $14.05M, totaling $78,484,555 in sales volume. While 2023’s number of sales are lower than the previous year (2023’s 7 sales vs. 2022’s 20 sales), the 2023 total sales volume of $29,250,000 indicates that despite the reduced transaction count properties are still commanding notable prices. Also, 2023’s narrower pricing range accounts for the fact that no oceanfront properties were on the market – or sold – this year. Whereas in 2022, there were two “front row” properties that sold. This demonstrates the limited inventory reality. There was no oceanfront property to buy this year, at least not actively listed on the market.
Lack of Inventory
As 2023 progressed, one challenge predominately stood out – the scarcity of available properties. The current Hanalei real estate market is characterized by a shortage of available properties actively listed on the MLS, a persisting trend in luxury enclaves throughout the US.
This year’s low number of 7 residential sales has only been matched in one other year (2019) in the past decade. On the opposite end of the range, peak sale counts of 20 sales in 2022 and 23 sales in 2021 were catalyzed by pandemic demand.
Looking at the past ten years (2014 – 2023) data set, the median sales count in any given year is 12.5 properties with the average being 14 sales per year. Only 7 sales in 2023 demonstrates the lack of inventory constraints on the market as there were less available options for buyers to choose from.
The Scarcity Premium
The fundamental economic principle of supply and demand is on full display in Hanalei’s real estate market, spurring the appreciation of property values. The limited availability of properties creates a scarcity premium, with Buyers recognizing the limited supply and willing to pay a premium for the privilege of owning in Hanalei. As a result, property values experience upward momentum, creating a positive feedback loop that reinforces the market’s desirability and exclusivity.
Market Resilience
Hanalei’s real estate market is a testament to the intricate relationship between low inventory and high sales, and continues to demonstrate remarkable resilience. Even in the face of external factors, such as economic fluctuations or global uncertainties, the scarcity-driven demand has contributed to a sustained level of high sales prices. This resilience maintains Hanalei’s position as one of the premier real estate markets in the State of Hawaii and the US.
While inventory is slowly increasing in Hanalei and throughout the US, in Kauai’s luxury market wide gulfs between final sales price and list price remain to be seen as high net worth sellers opt to wait for their premium rather than sell at a discount. They simply “don’t have to sell.” As the pandemic market flurry of minimal Days on Market (DOM) count subsides, the market appears to be slowly correcting towards more DOM. However, Kauai’s traditional 12-18 month DOM counts for properties $3M and above remain to be seen as evidenced by the average 46 DOM this year for Hanalei’s $3M+ residential sales.
As Hanalei continues to navigate the balance between low inventory and ongoing demand, properties commanding – and selling for – high prices reflect not just their intrinsic value, but also the overall desirability and exclusivity of this Hawaiian paradise. An on-going trend that’s likely to remain a defining characteristic of this boutique market.
An Ocean View Legacy Property
I recently listed a Hanalei house that is an ideal location to take in the ocean view without having to pay the $15M- $40M premium for oceanfront Hanalei.
Enjoying living across from iconic Hanalei Bay. Presented for the first time on the market, this ocean view home offers ample living space and convenient access to the Bay, courtesy of the green space of the Hanalei Pavilion Beach Park across the street.
Spread across two stories, the relaxed ambiance of this 3,484 sf. light-filled home is enhanced by the upper level’s beachy Douglas fir interior walls and vaulted ceilings. The upstairs has an open-concept main living and kitchen area, 3 bedrooms and 2 baths. The 500+ sf. primary bedroom suite features an ensuite bathroom, a large walk-in closet, and a private laundry. Transition to the lower level to find 2 bedrooms and 2 baths, a cozy sitting room, and an additional laundry room. With a sum total of 5 bedrooms and 4 baths, this home assures space for everyone, and offers a large upstairs ocean view lanai and a private BBQ patio for gathering together. The home also boasts a deep 1-car garage and ample room for all your beach toys and equipment.
Experience the relaxed beach lifestyle you’ve been longing for. Whether it’s surfing world-famous breaks, strolling the soft sandy crescent bay, biking to local eateries, or shopping at local boutiques, Hanalei has something for everyone. Embrace Kauai’s laid-back North Shore lifestyle from the vantage point of your own oceanview beach house.
For more photos and further details, please visit MLS #670433. For questions or to schedule a showing, please contact me at (808) 212-8058 or LaurenPingree@HawaiiLife.com. I look forward to connecting with you!
Aloha,
Lauren
Lauren Pingree
2020, 2021 & 2022 Hawaii Business Magazine Top Performer
(808) 212-8058
LaurenPingree@HawaiiLife.com
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