LIHU‘E — The Kaua‘i real estate market extended its summer slump with a little more than two dozen homes exchanging hands in July, as sky high interest rates continued to hang over the housing industry like the sword of Damocles.
A total of 15 single-family homes were sold in July, compared with 24 in July 2022, according to monthly data pooled from multiple sources by Hawai‘i Realtors in Honolulu. That marked a decrease of 37.50 percent in the period and the lowest number of single-family residences sold in any month this year.
“The number of homes for sale is up after a year of absolute flatness. That means less people are buying,” said Jimmy Johnson, who is broker in charge at RE/MAX Kaua‘i. “Every time there is a rise in interest rates, the level of interest (in houses) just drops.
He was referring to the 30-year, long-term rate, which floated between 6.71 percent and 6.96 percent in July, according to weekly data compiled by Freddie Mac, the Virginia-based mortgage giant. Those rates were roughly 1.50 percent higher than the same comparable periods a year earlier.
But the drop in home sales did little to cool the median price, which climbed 8.88 percent to $1,300,000 in July from $1,194,000 in July 2022. The latest figure was the second highest median price for any month this year, trailing only the $1,570,000 figure posted in April.
Sales of condominiums were a little more inspiring with 23 sold in July, compared with 30 in July 2022. That marked a decrease of 23.33 percent in the period.
However, the median price jumped to $1,150,000 from $1,035,500 or 11.06 percent in the same period. Of note, the median price for a single-family home and condo on Kaua‘i were the highest among the four major islands in July.
Neighbor islands
Sales of single-family homes and condos were also down across the island chain in July.
O‘ahu posted a 28.21 percent decline in single-family home sales to 224 in July from 312 in July 2022, while the median price fell 1.62 percent to $1,090,000 from $1,107,944.
Condo sales dropped 18.53 percent to 422 in July from 518 in July 2022, while the median price was unchanged at $500,000.
Maui recorded a 24.44 percent drop in single-family homes sales to 68 in July from 90 in July 2022, while the median price rose 8.41 percent to $1,192,500 from $1,100,000.
Condo sales retreated 24.24 percent to 75 in July from 99 in July 2022, while the median price was up 7.66 percent to $850,000 from $789,500.
Hawai‘i Island notched a 15.85 percent decline in single-family home sales to 154 in July from 183 in July 2022, while the median price increased to $495,500 from $455,000.
Condo sales sank 30.77 percent to 45 in July from 65 in July 2022, while the median price jumped 21.11 percent to $654,000 from $540,000.
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Wyatt Haupt Jr., editor, can be reached at 808-245-0457 or whaupt@thegardenisland.com.
