2020 has certainly been an interesting year. No matter how much you study economic trends and markets, I don’t think anyone was expecting the world events that have taken place, due to the Covid-19 pandemic. There is no question that everyone is impacted in some way. But the big question I get, is “How has the real estate market been impacted?” Of course, this is a very localized question and varies from region to region. I am going to share some information on the real estate market on the south shore of Kauai, a small island in the middle of the Pacific Ocean, that I call home.
At the time of writing this, there were only 36 homes listed for sale in tax key areas 4-2-6, 4-2-8 and 4-2-9, which makes up the Poipu and Koloa Town area. These are neighborhoods where you can expect to be close to Poipu beaches, with restaurants, shopping and amenities at your fingertips. Current list prices range from $559,000 – $18,750,000. The average list price is $4,101,329, and the Median list price is $2,800,000. Average days on market is currently 224, and median days on market is 153. Homes in the Visitor Destination Area (VDA) comprise the higher end of this market. Off-island Buyers and investors offset the cost of ownership by vacation renting these homes to visitors at premium prices. Only 10% of homes and condos in the south shore Kauai VDA are occupied by full-time residents.
In 2019, 54 homes sold in this area.
- Low Price: $395,000
- Average Price: $1,840,166
- Median Price: $1,531,500
- High Price: $6,000,000
- Median Days on Market: 64
- Median Sold/List Price: .96
In the first half of 2020, 16 homes have sold in this area.
- Low Price: $575,000
- Average Price: $1,639,312
- Median Price: $1,400,000
- High Price: $4,550,000
- Median Days on Market: 66
- Median Sold/List Price: .92
Considering the pandemic shut down real estate showings for a couple of months, and people who are off-island who may have come to look at houses are on hold, I would say our real estate market here is weathering fairly well. It does feel, however, like we are still at a standstill in the vacation and second-home market, which is the majority of the market on Kauai’s south shore. There is only 1 home currently pending. Compared to last year, where we averaged around 4.5 sales/month on the south shore for homes (condos are excluded from this analysis), this is a low number. The median and average prices in this market draw a Buyer pool from all over the world. Since our island still has a 14-day mandatory quarantine for Trans-Pacific visitors, daily arrivals on the island have dropped to almost nothing and people who are visiting to vacation and look at houses are putting their trips on hold. Since they are “on-hold” until they can come see homes in person, there is little competition for current listings.
Even though there is some uncertainty in the world, it may not be a bad time to be a Buyer due to the opportunities that are available, on a small island that normally has low inventory and limited options. Recent reports out of other vacation and second-home markets document Buyers flocking from urban areas to places like Aspen, Colorado to get away from the city. I think Kauai, though harder to get to, is an amazing sanctuary and place to be.
In times like these, when we are forced to re-evaluate our priorities, the realization that life is short may lead some people to live their best lives now, in a place where they can enjoy an amazing lifestyle. I feel so blessed to be here on this island that has been relatively “Covid-free,” and where there is great weather, an abundance of sunshine, fresh air and outdoor activities to keep us healthy and busy. Kauai is a popular destination for vacationers because of the respite and serenity that can be found here. The lifestyle here is pretty unparalleled.
Do you want to buy on Kauai but can’t get here to look?
Since the onset of the Covid-19 Pandemic, our real estate industry has adapted by doing things a little differently and doing as much “virtually” as we can. We have seen rise to better quality and more comprehensive walk-through videos. We have also been doing a lot more virtual showings, as well as virtual open houses. Although it is not quite the same as seeing a property in person, there is a lot to be learned through virtual showings, and with a thorough home inspection (which can also be video-taped), and a transparent real estate agent who can show you the property and surrounding neighborhood objectively, buying a property virtually is a possibility!
We have a listing in Koloa right now that is an opportunity for privacy and acreage with a beautiful custom-built home. The property is abounding with tropical fruit, flora and fauna, including, a Banyan Tree, Heyden Mango, Coconut, Papaya, Tangelo, Lime and more. It is rare to find a newer home like this in the heart of Koloa Town. Watch the video below, read more about it here, and reach out to us for a private virtual showing.
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