It’s a good time to buy investment grade vacation rental property here on Kauai. Mortgage interest rates hover at historical lows, and prices still have not reached the frenzied prices of 2007. Keep that in mind as we present our Kauai real estate review for February 2016 and if we can answer any of your questions or comments just bang out a reply below. You can also explore January’s Kauai real estate sales.
All 5 real estate districts on the island saw sales activity this past month. There were a total of 65 transactions according to the Hawaii Information Service and their numbers are deemed reliable. Let’s break it down graphically by Residential, Condominium, and Land sales.
Kauai Residential Sales
The Koloa district led the way in sales this month with 16. The trend continues for quality island investment properties that have the coveted location in the VDA or vacation destination area. Most of our client base likes the flexibility to vacation rent their homes when they are not on the island. With out this location designation in select areas of the Koloa and Hanalei districts you will not be legally permitted to short term rent your home. The County planning department has ruled that a short term rental is considered 180 days or less, and violators can be assessed hefty fines for non compliance. But we digress.
Hanalei median sale price increased nearly 4% to $958,000 when compared to January. Strong demand coupled with a limited supply in a world famous setting will continue to send prices Northward.
The median sale price in the Kawaihau district was slightly higher than January totals however only 8 residential properties sold compared to 13 last month.
Kauai Condo Sales
February saw a significant drop in condo sales for the island when compared to January’s total of 35, we will wait and see if there is a trend developing. Our observations during our hunt this month was that inventory of reasonably priced upgraded Poipu condos were dwindling in the $ 700,000 price range. You can read what we found for our client here.
Kukuiula has broken ground on their Kainani condo project and we expect pre sales to record once construction of the structures begin. They will be a tasteful mix of 1-3 bedroom spaces with the one bedrooms consisting of 900 square feet and a starting price of $1,400,000.
Kauai Land Sales
The graph highlights the paucity of sales in this group with great clarity. Despite only 7 closings it is well above last years monthly average when the total number of land parcels that sold island wide in 2015 was only 40! As long as buyers perceive a better value in existing homes they will forgo the logistical obstacles of building from the mainland.