Kalaheo is a beautiful town in Kauai, Hawaii. It is census-designated and located on the southern shore of Kauai. With a population of about 3,000, this small town has limited accommodation. However, it has been continuously attracting tourists for its tranquil beauty and relaxed atmosphere. It is the perfect place if you want to take a break from fast-paced city life. Although this might not be your conventional tourist spot, this serene town with spectacular scenery and beautiful environment is the perfect holiday destination for people who are looking to relax and unwind. All these factors make real estate in Kalaheo a fairly good market. It makes for an ideal long term investment; not only in terms of monetary returns, but also because it is an ideal holiday retreat.

Market trends

Compared to the previous year, the median sales prices for family homes and condominiums have gone down. There has been a decrease of over 40% over the past five years. However, Kalaheo real estate has experienced growth in the second quarter of 2011. Compared to the previous year, the median sales price has decreased by about 15%. However, compared to the first quarter of 2011, there has been a rise of almost 20%. The median sales price is now $36,000. The number of sales, after experience an all-time low in 2009 because of the country-wide real estate crisis, has been increasing steadily since. The average listing price for homes has also increased, which is an indication of the fact that realtors are expecting more out of real estate in Kalaheo. The number of listings, however, has decreased towards the last week of September, 2011. The average price per square feet has also decreased in comparison to the previous year. There is, however, strong belief that Kalaheo real estate will expand and grow.

Mortgage rates

There are a number of brokers, lenders and banks in this small town, offering varied interest rates. The annual percentage rate generally depends on the principal amount, number of years of expected mortgage payment and the type of loan taken. They range from 3 to 4% depending on whether they are 15 year, 30 year or 40 year fixed loan type. It is a good idea to compare different interest rates offered before reaching a conclusion. Most lenders offer affordable mortgage rates but it must be remembered that a little negotiation can go a long way in saving money.

Realtors and brokers

Kalaheo is a fairly popular vacation retreat. There are thus a number of realtors and real estate brokers trying to sell and rent out houses for a varied price range. It is highly recommended that only a registered and licensed realtor is approached. Open houses are a great opportunity to visit a house without any pressure from the real estate agent. It is also important to do a survey of the locality, homes and prices to get an idea of the kind of prices the houses and condominiums and sold for, before buying a property. As the prices are speculated to rise further, now would be an ideal time to buy a house or a condominium.


The people of Kalaheo form a well-knit community. They have a strong sense of culture. The racial make-up is diverse, but the residents lead a peaceful life. They have a comfortable standard of living and the crime rates are low. There are a good number of schools in the town and great importance is placed on education by the residents of Kalaheo.