Kauai Real Estate Q1
The first quarter statistics of 2022 continue to exemplify a “hot” real estate market, but the signals of a constrained supply side are starting to show. Residential sales volume on the entire island jumped to a massive $320M during Q1 of 2022, compared to $296.5M in Q1 of 2021 when inventory was not an issue and everybody was in awe of the market activity. North Shore residential sales volume surpassed $169M during the quarter, an 18% jump from the $144M of Q1 2021. The sales volume increases that jump out across most market segments are in stark contrast to the declines in # of sales that are equally evident across most segments. The number of residential sales on the island decreased more than 13% from 174 in Q1 2021 to 151 in 2022. The drop was even more drastic on the North Shore as the number of residential sales dropped from 52 for the period in 2021 to only 35 during Q1 of 2022, a nearly 33%.
The further push in sales volume, across fewer deals, precipitates surging median prices. North Shore residential median sales prices surpassed $2.6M for the quarter, and island wide, the residential median sales price was $1.2M
Demand still far exceeds supply and the limited inventory continues to constrain further market activity. Another obstacle on the horizon is interest rates that have risen sharply across the last quarter and appear to follow a trajectory for further increases yet to come. While this will certainly impact entry-level and first-time homebuyer segments, the luxury second home markets are often more buffered from the value impacts of fluctuating interest rates.
If you’d like to explore the numbers a bit deeper, check out the market snapshot below for Q1 2022, or via the following links for an enlarged versions – Kauai Snapshot Q1 2022
Monthly Sales and Median Price Statistics
The below chart depicts monthly sales and median prices for both the entire island and the North Shore.