Transactions through the first quarter of 2016 show that buyers are particularly interested in Kauai’s affordable and luxury spectrums, where options are increasingly rare. In fact, 65 percent of all residential sales through the first quarter were either below $500,000 or above $1,000,000. Conversely, the number of properties between this price range grew with extended days on market, which will soon push sellers to drop their prices.
Through March 31, 2016, overall Kauai sales volume stands at $213,821,560 a full 11 percent ahead of the first quarter last year. Residential sales alone dropped behind 2015 by -1.47 percent landing at $132,776,421 with vacant land surging forward by over 80 percent to $36,880,500. Condominiums remained strong, rising 20 percent over the first quarter last year to $41,854,639. The island’s most substantial recordings occurred on the north-east and north shores where two acreage estates closed for $15,000,000 and $17,000,000.
The Koloa district lead the way in positive residential sales gains with $36,250,499 sold across 39 transactions, an increase of 66 percent. Interestingly, North Shore volume dropped by -37.85 percent to $56,187,000 while Kauai’s eastern shore saw a surprise jump by 78 percent to $30,340,502. Waimea and Kekaha, on Kauai’s West Side, surged by 96 percent to just over $4,000,000 in closings.
We see current residential escrows on Kauai convincingly weighted to new and like-new construction. Developers are looking to bring product to market but are challenged to deliver at a pace that meets demand. Labor, already tight and much of it flying to Oahu Monday through Friday, holds the market in its hands.