After two-plus years of record-setting activity in the housing market, there are growing signs that a change could be on the horizon—even as the median sales price hovers near the record high on the island.
The latest stats for the month of May have been released (thanks to our friends over at locationshawaii.com), and while the median sales prices on Kaua’i this past month remains strong, it nevertheless presents quite the study in contrasts:
Single-family homes saw a median of $1.028 million, down 9% from May of 2021—and down 12.5% from April 2022’s high of $1.175 million
Meanwhile, the median sales price for condominiums shot up 27% from last year, to $799,000
Despite the strong median and average sales prices ($1.67 million for single-family, $994k for condos), overall sales on the Garden Isle were down -28% for single-family units and -37% for condos as compared to May 2021.
For one thing, the disparity on display between the average home price and the median home price is largely a result of Kaua’i’s high availability of luxury properties, particularly along the highly sought-after north shore. With many high-end homes continuing to sell for top dollar.
Furthermore, the ongoing lack of total available housing has continued to have an outsized impact on current sales numbers, both here on Kaua’i and across the Aloha State. The typical single-family home only spent 11 days on the market (per the median) last month, a day more than April’s 10 days being listed before selling. Condo sales sported similar figures last month (10 days per the median, up from a mere 7 days in April), meaning buyers of nearly every demographic and ability are continuing to snap up whichever homes become available.
Nationally speaking, Kaua’i is definitely not unique when it comes to experiencing a recent slowdown, with existing home sales falling by 2.4% from the previous month, whereas pending sales dropped 3.9%, according to the National Association of REALTORS®. The continued escalation of the average and median home price, combined with surging mortgage interest rates and the ongoing lack of total available units have all contributed to slowing buyer activity, with home sales declining for the third straight month this year.
The recent slowdown, however, has also allowed for an increase to the overall housing supply nationwide, with total inventory rising 10.8% as compared to April, good news for many first-time buyers looking to break into the market! While many island kama’aina continue to await relief and an increase in inventory locally, the Garden Isle’s strong sales numbers are still expected to continue for at least the coming months this year—which is why it’s imperative to avail yourselves to the services of an experienced realty team to buy or sell your next (or first) home on Kaua’i!
Wai’oli Properties is a full-service, boutique real estate company that is proud to serve the island of Kaua’i. We’re the experts in every aspect of the real estate business, from property management to buying, selling, and locating the right financing for their new home. Local since 1982, the Wai’oli team comprises a veritable who’s who of island real estate experts, managing over 55 (and counting) properties across Kaua’i whilst helping our clients to buy, sell, stage, and discover the home of their dreams.
Contact us today to see how we can serve you & your ‘ohana’s needs today!