Kauai’s Real Estate Market Report, Q3 2021: What Decreased Inventory Means for Kauai’s Housing Market
Just released by Hawai’i Life, our Quarter 3 2021 real estate market report reveals that while inventory was on a steady 37.2% decline in the past 12 months, the volume of sales rose by an impressive 36.1% over the same period. It’s clear that for Kauai real estate, an already low inventory is being depleted faster than in 2020.
Hot Seller’s Market Not Cooling Down in Q3
The pandemic triggered a mass migration from the mainland to Hawai’i, and in turn, an influx of buyers to Kauai. It was the perfect foundation for a seller’s market that is still going strong.
According to Q3 reports, the average Days on Market (DOM) was 84 versus 86 in Q3 of 2020. It’s a slight downward trend of 2.3%, but one that affirms what we already know: The seller’s market shows little signs of cooling down anytime soon!
When single-family homes on Kauai did sell after their brief presence on the real estate market, the average sales price was 65.6% more than in Q3 of 2020, coming in at $1.903M. As this downward trend in inventory continues, sales prices can be expected to continue escalating.
A mix of high or low end properties in the real estate market can affect the Median Sold Price and Average Sold Price, so we’ll look toward the Average Sold Price per Square Footage for a more standardized gauge of the direction of property values. For Kauai, residential properties are commanding more value per square foot. In fact, the average price per square foot has experienced a 46.1% growth spurt over the last year, with the year over year increase surging to $896.77 per foot at the end of September 2021.
3824 Punahele Rd. Princeville
Inventory Recedes, Revealing 37.2% as the Magic Number
In Q3 of 2020, we saw 133 home sales on Kauai. By Q3 of this year, that number jumped up 36.1% to 181 sales! And with 167 homes currently under contract, that’s 37.2% less homes this quarter than the 180 homes in Q3 2020.
As far as the homes still on the market, there are currently 130 active residential listings on Kauai based on the Real Estate Market Report. When compared to Q3 2020, that’s another 37.2% drop.
So what does this mean for Kauai real estate? That an already low inventory is being depleted even faster. In fact, months of inventory currently available is over 50% less than the 4.9 months we saw in 2020. Specifically, we’re looking at 2.3 months of inventory … and an abundance of satisfied sellers!
What This Means for Buyers and Sellers
For the seller, this means that buyers will continue to compete against each other for a limited supply of available homes, likely driving prices up.
For the buyer, a mix of low inventory and a flood of other bidders can present some unique challenges, but our Hawai’i Life experts have proven strategies to implement, helping the buyer be competitive so their offer is accepted.
Access the rest of the Q3 Hawai’i Market Reports Now
The Real Estate Market Report covers quarter three of 2021, providing a wealth of knowledge from Hawai’i’s most experienced real estate brokers.
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