LIHU‘E — The median sales price for a three-bedroom home on Kaua‘i in June was $1.1 million, a $495,000 increase from the same month in 2020.
The median sales price for June of 2021, by location, was: Waimea $600,000; Koloa $1.3 million; Lihu‘e $687,500; Kawaihau $800,000; and Hanalei at $1.92 million.
According to The Associated Press, data from Hawai‘i Information Service and Honolulu Board of Realtors found Maui’s median home sales price for June was over $1.1 million, O‘ahu at $978,000 and Hawai‘i Island at $465,000.
Milo Spindt, a broker-in-charge of property management at Elite Pacific LLC, said COVID-19 created a national demand for housing in rural areas.
According to Spindt, this was due to two main factors: telecommuting increasing by about 150% from 10% of the workforce to about 25% of the workforce; and financially mobile families left urban areas for rural areas that generally had lower risks of COVID-19 outbreaks.
“When you combine this increase in demand and meager new-housing production with the most beautiful tropical island in the United States, you get a formula for a housing-value explosion,” Spindt said.
“Prior to COVID-19, Kaua‘i was already facing supply-and-demand issues. The dramatic influx of new buyers, in a supply starved market, has resulted in scarcity-driven price increases far beyond the reach of the median household,” he said.
Spindt said buying a home has always been part of the American dream, yet it is not an easy process in normal times. In the current COVID market, it can be even more challenging.
“The greatest challenges to buying a home on Kaua‘i right now are the high prices and heavy competition created by the limited inventory,” Spindt said.
“Many sellers are receiving multiple offers on their homes. A desirable home that is well-priced may receive multiple offers. It is not uncommon for homes to be selling for more than their asking price, and occasionally for all cash. Under these circumstances, many buyers have a difficult time competing.”