Kapolei Homes For Sale

Kapolei Real Estate Market

Kapolei, once considered Oahu's "second city," is experiencing a unique blend of market forces, leading to a somewhat competitive real estate landscape. Unlike its counterparts in Kailua or Waialae-Kahala, Kapolei's housing market is currently experiencing a downturn in median sale prices. This article will delve into the details of market competitiveness, financial metrics, and migration patterns affecting the Kapolei real estate market.

Market Competitiveness 

Kapolei's housing market is best described as "somewhat competitive," which translates into several key market behaviors:

• Time on Market: On average, homes in Kapolei are selling after about 59.5 days on the market. Interestingly, this is a slight increase from 48 days last year, suggesting buyers may be taking more time to make decisions.
• Offers and Pricing: Homes typically receive around two offers before being sold, and they generally sell around the list price. Highly desirable or "hot homes" can command up to 1% above the list price and go pending in approximately 50 days.

Financial Metrics

• Median Sale Price. Perhaps the most striking feature of Kapolei's current market is the sharp decline in the median sale price. At $522,000 last month, this represents a 30.8% decrease compared to the same time last year. This steep drop could signify various factors like economic challenges or a surplus of inventory.
• Sale Price Per Square Foot. The median sale price per square foot is at $607, marking a modest 1.1% decline since last year. Although not as drastic as the dip in median sale price, this decrease could reflect a softening market.
• Volume of Sales. The number of homes sold has also fallen substantially, from 21 in July of last year to just 6 in July 2023. This decline may indicate diminished demand or perhaps a transitional phase for the Kapolei housing market.

Migration & Relocation Trends

• Inbound Migration. Mirroring trends seen in Kailua, Kapolei is attracting a small fraction of homebuyers from outside its metropolitan area, specifically 0.78%. Most of these buyers are from high-cost cities like New York, San Francisco, and Los Angeles, suggesting that Kapolei may offer relative affordability or different amenities.
• Local and Outbound Movement. Within Kapolei, 37% of homebuyers are considering moving out of the area, while a majority of 63% intend to stay within the Kapolei metropolitan region. Popular relocation destinations include Hilo, Las Vegas, and Kahului.

The State of the Kapolei Housing Market

In summary, the Kapolei housing market presents a mixed landscape. On the one hand, it retains competitiveness, with homes receiving multiple offers and selling close to the list price. On the other, the market is witnessing a decline in both median sale prices and volume, posing questions about its current stability.

Migration trends indicate that Kapolei still retains its local attractiveness while also drawing interest from high-cost metro areas. However, a sizable portion of residents are also exploring opportunities elsewhere.

For prospective buyers and sellers, this could be an advantageous time to enter the market, given the current softening of prices. For sellers, setting a realistic listing price could be key to quick sales, while buyers may find more room for negotiation. However, both parties should be aware of the complexities and should strategize accordingly to navigate this "somewhat competitive" market landscape.