Before we jump into our recap of the real estate market performance during the second quarter of 2018, we first just want to take a moment to recognize the resilience of our North Shore community. During Q2, the historic floods (50+inches of rain recorded within a 24 hour period in certain areas) hit our North Shore. What followed was a heartwarming and inspiring collective action of community. The initial days were led by community volunteers who non-stop shuttled people out by boat from inaccessible neighborhoods beyond Hanalei. Funds were raised to help community members and businesses rebuild. While the recovery is still underway (ie. road repairs along Kuhio Highway beyond Hanalei are still underway and the pier in Hanalei is still inaccessible), Hanalei is vibrant and bustling, and the outpouring of support within the community and from afar has left us all with even more to love about Kauai.
That said, it’s been an exciting first half of the year in 2018 from a Kauai real estate perspective. The first two quarters of this year have concluded as our team’s best ever first half year in sales volume; we closed over $155M. February also represents Hawaii Life’s highest total sales volume in closings in the company’s history. The demand has been strong at all segments of the market, driving up values on everything from entry-level condominiums in Princeville to AAA beachfront properties. Below you will find a sample of some Kauai relevant market statistics from Q2 ’18. If you’d like to explore the numbers a bit deeper, check out the market snapshot below or via this link for an enlarged version.
Hawaii Life’s broader dominance was also exhibited through the first two quarters of this year and extending back through 2017. Check out these stats below which capture such in the numbers:
North Shore (TMK 4-5) Land Sales $1.5M+ 2018 YTD
- Total Market: 5 total sales (10 Sides) with total volume of $33,100,000
- HL was on 7 of the sides (70% market share)
- HL had $23,450,000 of the total sales volume (71% market share)
North Shore (TMK 4-5) Home Sales $3M+ from 1/1/2017 to Present
- Total Market: 25 total sales (50 Sides) with total volume of $376,348,000
- HL was on 33 of the sides (66% market share)
- HL had $277,576,800 of the total sales volume (73% market share)
The above chart highlights the jump in sales and median prices for March, both island wide and on the North Shore. We also see that there is resilience in the new price points for median sales prices for island-wide residential properties within the past six months of our sample. It is the first time during the observation period that median sales prices for island-wide residential properties have remained above $700,000 for five out of six consecutive months.
The long-term graphic below displays quarterly median sales prices over the past 11 years. Median prices have come off from the Q1 ’18 highs. The first quarter had represented the first time since the first quarter of 2015, and only the second time since the last recession, that both island wide and North Shore median prices were above their pre-recession peaks.
Once again, we are proud to have recorded our best ever first two quarters of a year in sales volume ever. It will be hard to sustain the pace through the rest of the year, but the market has continued to be strong and active, and it feels like there are more exciting things yet to happen in the second half of 2018.