The overarching trend of secondary homeowners opting to remain on-island and become primary residents amidst global uncertainty was the driving force in the 2021 market. The consequences of these factors are a bullish seller’s market with rapid close times and higher prices amidst lower inventories. I’m proud to say that despite the increased pressure to close fast we finished the year strong. We will continue to drive new business by prioritizing client needs and goals.
Scarcity Continues to Drive Value
While it is no surprise that inventory numbers decreased in 2021, the pace was frenetic when compared to the same period in 2020. Q4 inventory in terms of months shrank from an already minuscule 3 months to 2.1, a 30% decrease. The decreased inventory led to a reduction of sales volume as total transactions shrank from 195 in ‘20 Q4 to 160 in ‘21.
Property Values Continue to Show Strong Growth
Since the start of 2021, the Kauai real estate market has remained active. The year-long trend of decreasing inventory continues to push property value across the state. The average sales price in Kauai increased from $1.5 M to $1.69M, representing an increase in value of 17%. The average sold price per square foot increased 21%, rising from $695 to $846/square foot. Buyers continue to recognize the advantage of speed in an extremely active market as well. In Q4 the average number of days on the market was 68 days. This represented a reduction of 27% when the average DOM was 93 days in Q4 ’20. In 2021 many high profile buyers including Facebook CEO Mark Zuckerberg and Carlos Santana made large purchases on Kauai in 2021. It seems many others are following their lead and buying property on the Garden Isle.
Kauai’s West/South Submarket Leading the Way
Within Kauai’s submarkets, West/South Kauai leads the way in growth. I am seeing the neighborhoods around Poipu, Kalaheo, and Waimea continue to drive value in this region. The average sales price ballooned 39% from $1.245M in Q4 ‘20 to $1.73M in Q4 ’21. The average days on the market dropped 30.2% in Q4, reducing from 86 in ’20 to 60 in ‘21. I can see why the growth in this region has exploded. Poipu beach consistently ranks as a top 10 beach in America and this submarket is the only region on the island that enjoys dry weather and year-round sunshine.
As a longtime resident and agent specializing in the West/South submarket, this much trading activity has been fervid and gratifying at the same time. With my resources and experience I am well-positioned to personally address every client request or need.
Faster close times and increased prices make residential listings a premium in the West/South Kauai. Inventories remain very tight and market activity continues to remain high. In spite of tight inventories, my clients are still achieving their goals and getting deals across the finish line. Regardless of market dynamics, I’ll find the best solutions in Kauai for you. I’ve shared a few of my most recent listings to see if they could meet your goals in 2022.
South Kauai Listings
This townhome in the attractive Kalaheo neighborhood pairs great value with an ideal location. Walking distance to schools and shopping and a short drive away from the award-winning Poipu Beach.
Kiahuna Plantation #56 is another attractive opportunity situated on a 33-acre ocean-front resort. A 2-minute walk from the beach, this ground-floor unit is a private getaway with resort amenities.
Want to Know More?
I draw on two decades of experience as a top-producing agent on Kauai to meet client goals. Whatever your objective, you can be certain that I will prioritize your needs first and foremost. I specialize in residential, relocation, and resort property sales in Poipu Beach, Lawai, Omao and Kalaheo, on the island’s South Side.
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