With 2017 now nearly 2 months in the rear-view mirror, its time to offer a recap of 2017 as compared to prior years and forecast for 2018.
Last year will be recognized as the year of solid footing. For the last nine years the Kauai real estate market moved from 1st to 2nd gear. Sales activity, fueled by a surge in showings, produced a meaningful shift in 2017 where Buyers recognized the need to act or lose the property. The island still provides a handsome cache of inventory across residential, land and condominium offerings; however, the waning of affordable and mid-priced options creates stress on an already fragile long-term rental market. Many who fell flat while seeking to buy a quality home between $400,000 and $700,000 opted to simply get into the market via a land acquisition. It is then no surprise that vacant land sales, at purchase prices up to $375,000, stole the show offering the highest percentage gains across all categories:
- Land closed sales: Up 54.79% over 2016
- Land closed sales volume: Up 28.20% over 2016.
Looking at 2018, we see the new tax law, coupled with a surge in stock portfolios and inflationary fears driving further real estate investment. Buyers will focus on price, containing on-going expenses, remain mindful of tax planning and shall purchase Kauai real estate as long term holds. Tax deferred exchange investment will pick up once again, and 2018 will best 2017 by double digits.