Kauai Real Estate Q2 Review
The previous quarter concludes one year since the onset of what has been an amplifying demand shock, catalyzed by the Covid-19 pandemic, to the real estate market. Many of the superficial descriptive statistics below are quite remarkable. Quarter on quarter to last year, we have witnessed a more than 300% increase in island-wide residential sales volume — sales volume hit $457.9M in Q2 2021 compared to $113.6M in Q2 2020. That number does not speak to the 875% jump in vacant land sales volume nor the 273% increase in condo sales, collectively of which adds another $198.6M to total sales volume in the market for the quarter. Number of sales has also increased dramatically with total residential sales up to 223 compared to 84 in the same period last year; likewise, land sales increased from 14 to 53 and condo sales from 73 to 191 in second quarter comparisons.
Every market segment, whether delineated by product type or region, saw meaningful increases across all basic metrics. Highlighting our North Shore market, this segment saw a 346% increase in residential sales volume during the period compared to last year, and this quarterly total of $250.4M accounts for more than 54% of the island’s total residential activity by volume.
Median sales prices have also surged across the board and now display values wells surpassing peaks that preceded the last downturn. The message is clear no matter how you parse this data — Kauai’s real estate market is on a historic rise. While this “covid effect” has carried weight across the broader US real estate market and many international real estate markets, the structural features of Kauai’s surge, such as long term supply constraints and demand side demographics, suggest that some of Kauai’s market segments may be resilient to the inevitable market contraction that will happen down the road. For now, all signs point to a continued strong Kauai market with ample activity and strong value. If you’d like to explore the numbers a bit deeper, check out the market snapshot below for Q4, or via the following link for an enlarged version – Kauai Snapshot Q4.
Monthly Sales and Median Price Statistics
The below chart depicts monthly sales and median prices for both the entire island and the North Shore. This is just another depiction of a market displaying a lot of activity and strong values. Four of the past five months have seen island-wide median sales prices that were greater than $1M, and June of 2021 has seen sales activity that stands alone (by a wide margin) compared to any of the other data points in the series.
Long Term Quarterly Median Sales Price Trends
Though the prior peak in prices precedes this data set, North Shore and island-wide median prices have now well surpassed the 2009 peak.
Though we have stated such on numerous occasions over the past year, the demand shock we are experiencing has penetrated every segment of the Kauai market, no matter how you slice it. At the highest end of the market, we are also seeing an incredible pace that is worth pointing out. Since the start of this year, there have been 11 sales at sold prices greater than $10M (there is one additional currently in escrow). Of these 11, five have been for sold prices greater than $20M.
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