Our Kauai real estate summary for 2012 includes a forecast for 2013 Kauai property sales. We also feature important tips for buyers interested in Kauai condominiums for sale including deluxe alternatives like the Villas at Poipu Kai.
Year end sales data for 2012 Kauai real estate showcased building upon what many in our industry now call a late 2010/early 2011 bottom. The year reflected a noticeable stabilization of the marketplace and wide swept absorption of value priced Kauai real estate inventory as follows:
- Villas at Poipu Kai, a newcomer to the Poipu Beach market, became popular with high end buyers intrigued by the lower $600 square foot range for deluxe condominiums. Two Kauai condos are in escrow.
- Kauai property sales statistics conclusively show a 16.36% across the board drop in median price over 2011 numbers.
- Median prices trended lower, while Kauai real estate sales numbers increased by 16.56% and volume surged by 19.91%.
- Demand for Kauai real estate information and request for showings is widely reported across both luxury and the affordable segments of the market while mid-priced inventory remains stuck in no-man’s land being forced to look at a slippery slope or hope for better days right around the corner.
- 2012 real estate sales for the south shore Kauai (Kalaheo, Lawai, Omao, Koloa/Poipu) reflected wide swept interest in residential real estate followed by vacant land sales then condominiums.
South Shore Kauai 2011/2012 Sales Comparison
|Category||2011 # Sales||2012 # Sales|
- Residential buying capitalized on the nexus of downward pricing and access to cheap money and sought a hedge against inflation. A return to positive vacant land sales shows an abundance of cash on the sidelines looking to be put to work while construction pricing remains affordable.
Kauai Condominiums are always the last to recover – Villas at Poipu Kai Ends Strong
We’ve been advising our readers to carefully watch this category. For, in 2012 the high end investor finally jumped in on tempting condo values. This buying trend was no more noticeable than at Kauai’s top luxury oceanfront condo property, Whalers Cove, where 4 properties out of just 39 units at this boutique property, went into escrow. There were 3 closing in 2012 and the 4th is set to close in January of 2013.
Now that Whalers Cove has captured the $1,000 per square foot comparable and will presumably push higher, the New Year shows that high end Buyers are seeking deluxe alternatives to Whalers Cove at lower prices per square foot.
Deluxe condominium newcomer to the Poipu Beach market, Villas at Poipu Kai, is seemingly capturing this interest by recently placing 2 properties listed at prices in the $600.00 per square foot range into escrow.
2013 Kauai real estate sales performance will be distinctly similar to last year in the following areas.
- 2013 Kauai real estate sales data will mirror 2012 and reflect another building block year.
- Buyers will continue to favor new and like new properties over fixer-uppers.
- Cash buyers will remain patient and drive hard bargains.
- Financed transactions will be primarily achieved through Hawaii based lenders. Buyers and Sellers are cautioned that financed transactions require extended time periods. In fact, a 60 day close is ambitious and 75 days is encouraged in a climate where appraisers and lenders are missing contract dates.
Suggestion: Communicate with the lender of choice up front, and before entering into contract, to formalize realistic target dates for both conditional and final loan approval dates. An excellent read on this topic is found in the March 9, 2012 Forbes article by Mark Greene entitled, The Perfect Loan File
For all your Kauai real estate needs and questions, we invite you to call Hannah Sirois (PB) and Peter Sirois (R) at 808-742-1191.