Hawaii Real Estate Resource

Kauai has joined the island of Oahu by passing an ordinance banning use of handheld electronics while driving.  The Oahu ordinance is already in effect and Kauai's will begin on May 3.  The Kauai mayor has promised to sign the bill when it arrives at his desk.

It's not yet clear what steps the county will take to notify arriving tourists which make up a significant number of our drivers.  That may not be a big issue since bans are being enacted in many areas of the mainland and the car rental companies should notify it's drivers.

Come visit and drive safe!

Aloha!

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Although FHA loans are reported to be gaining share nationally, they still represent only a small share of Kauai purchases.  Over the last 6 months, most purchases are with conventional financing or all cash as shown in the chart below.

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Days on Market continued to climb in 2009 as shown in the charts below.  So far in 2010, the overall numbers are similar to 2009 but variation within property types is huge.  Once there is sufficient data for meaningful results, I'll update the charts to include 2010. 

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About an hour into the hike on the Canyon Trail in Waimea State Park, one comes to a little stream feeding Waipo'o Falls.  It's not possible to see the falls itself as it falls away below and one cannot peer over the edge to see it.  But a path upstream leads to an idylic little waterfall feeding a small pool as shown in the photo.  This is a great place to relax and have a snack before returning.

Kauai's Waimea Canyon is often referred to as the Grand Canyon of the Pacific.  There are many hiking trails one can take to explore and enjoy the beauty.  This one was taken from the Canyon Trail, a modest hike providing majestic views of the canyon and the ocean beyond.  Here is one of my favorite viewpoints.

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Link to MAP of area hiking trails

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The Walt Disney Company announced that it will film the 4th installment Johnny Depp movie, "Pirates of the Caribbean: On Stranger Tides", here in Hawaii.  Filming will be split between the islands of Oahu and our beloved Kauai.  This will bring positive economic benefits to the islands which are surely needed in today's environment.  Filming is scheduled to begin this Summer for a movie release next year.

Other Disney activities in Hawaii include the 800-plus unit Ko'Olina Resort and Disney Vacation Club currently under construction on Oahu.

Aloha!

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Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

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Kauai Energy Sustainability

Sustainability is a hot topic on Kauai these days with efforts to wean our island from oil as an energy source.  A $200,000 contract is in place with a local consultant for ideas on how to do that.  Clearly this is a complex topic and not one easily solved.  Some ideas and issues:

The energy sustainability consultant recently recommended a 50 cent gas tax increase.  With Hawaii already having the highest gas prices in the nation, it's understandable that this was met with redicule by politicians & residents alike.  Compounding the problem is limited alternative transportation with buses that don't run on Sundays and are very limited on other days.

Some individuals are wanting to install windmills to generate energy.  However the permitting process is very difficult due to needing a special permit to exceed island height restrictions.  The county coucil recently rejected a bill intended to streamline the process.

Other ideas floated by individuals including capping the number of cars (a new one not allowed on the island without first shipping out an old one) and restricitons on private property rights to forbid transfer of ownership.  It may be that ramifications of these "suggestions" were not well thought out.

If only we had some cavemen to show us how to make all this easy...

Aloha!

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Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

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Kauai and Muai year-to-date sales statistics through December 2009 compared to the same period in 2008 show that this continues to be an unprecedented opportunity for buyers. Selection is large and prices are down substantially There remains a large amount of inventory to be cleared out before downward price pressures ease. An upturn in number of sales is key to that and there are hints that this may now be happening. Some economists think we may be at or near the bottom of the cycle.  Of course we won't know we're at the bottom until we can look in our rear view mirror and then it's too late for the best deals.

This Month's Update

Year-to-Date Median Sales Price (Jan-Dec 2009)

Year-to-Date Number of Sales (Jan-Dec 2009)

[Data extracted from Kauai and Maui multiple list reports. Data is deemed reliable but is not guaranteed-please consult with your real estate professional. There may be differing opinions and interpretations of the data.]

Aloha & Mahalo!

Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550

Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

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All traffic going to or from the area North of Kauai's Wailua River is impacted

The Kauai Department of Transportation has announced that the cane haul bridge (ask me if you don't know what that is) over the Wailua River will be closed until late summer as it is expanded from one lane to two.  In addition to that, the parallel main bridge will be restricted until January 28 making for a massive traffic nightmare for those trying to go between Kapaa and Lihue. 

Here on Kauai, we only have one main road with some feeders and a few areas with bypass roads.  Unfortunately here is no bypass for this area unless one does it by boat or helicopter.  Those traveling from the Princeville and Kapaa areas to the airport should allow a few extra hours for the trip for the rest of January.  Long term, having 4 lanes instead of 3 should help smooth traffic in this congested area of Kauai.

(Photo courtesy of The Garden Island Newspaper)

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There has been a huge improvement in Kauai's absorption rate since my November 2009 update. The Janaury chart is shown below followed by the one from November. Although no categories are within the desired 6 months or less range, most are now in the 1-2 year range instead of 4, 5, and 10-year. This change is driven both by a decrease in the number of active listings and an increase in the number of sales. If this new trend continues to hold, it may represent a shift towards a more balanced market.

January Update

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Prior Update in November

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Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

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The Kauai real estate market has been in sync with most of the nation as sales prices have been in decline since our market peaked in 2006.  Hints that we may be starting to stabilize are more pronounced now that complete data for 2009 is in.  The downward curve for residential sales prices is starting to break after hitting a low in the first quarter 2009.  This is a positive sign compared to my post with 3rd quarter data HERE.

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The 4th quarter 2009 residential median sales price was $480,000 with signs of an end to the free-fall

To complete the update of my earlier post, here is the data for condominiums and vacant land.

The 4th quarter 2009 condominium median sales price was $330,000 with signs of an end to the free-fall

The 4th quarter 2009 vacant land median sales price was $271,000 also with signs of an end to the free-fall 

Aloha!

Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550

Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

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Information herein is deemed reliable but has not been independently verified and is not guaranteed. Please consult with your real estate professional as part of any buy or sell decision.

The Kauai real estate market has been in sync with most of the nation as sales prices have been in decline since our market peaked in 2006.  There are now hints that we may be starting to stabilize which is what some are forecasting for 2010 barring unexpected events.  Our market is unique in that it has higher-priced resort properties mixed in with our local housing data.  A scarcity of resort property buyers in recent years has resulted in a heavier weighting of local housing data.  This weighting change is believed to represent a portion of the price decline although it's not possible to say how much.

Island-wide data follows for residential, condo, and vacant land median sales prices tabulated quarterly by our local MLS system.  Additional breakdown by zone is available for my clients upon request.

The 3rd quarter 2009 residential median sales price was $470,500 with a hint of stabliization.

 The 3rd quarter 2009 condominium median sales price was $357,500 with a hint of stabliization

.

The 3rd quarter 2009 vacant land median sales price was $291,252 with a slilght uptick in 2009.

 Aloha!

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Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

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The nicest decorations I've seen were just 3 blocks away from a friends home in Ewa Beach, Hawaii.  Truly awesome!  Happy Holidays everyone!

Aloha,

Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550

Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

Visit www.KauaiRocks.comfor Hawaii real estate information 

The December issue of Hawaii Business magazine has published a survey of Hawaii business leaders.  Over 2/3 of the respondents projected a full recovery to 2007 levels would not be realized until 2012 or later.  Some see tourisism rebounding in 2010 and since tourism is our #1 industry, this is critical for recovery to take root.

Nevertheless, Hawaii still remains a very desirable place to live and was one of the top 3 in a recent government survey on satisfaction.  As one of those happy people, I can attest that life in Hawaii continues to be good in spite of the econimic downturn.

Aloha,

Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550

Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

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It's not exactly a great time to be selling a condo on Kauai but the flip side of that is there are pleasant surprises waiting for qualified buyers.  Financing is available for most condo projects but there are a few where only cash will do, typically condo-tels with no kitchens.  How much have prices declined from the 2006 highs?  Read on for the answer...

Island-wide, the price per square foot of condo living space has declined almost 50% from the 2006 peak.  A portion of the decline may be due to more sales of lower-priced residential condos and fewer sales of higher-priced resort condos.  One of our big resort areas is Poipu on Kauai's South Shore.  The majority of condo sales there are resort condos with a few residential condos thrown in.  The second chart shows sales price per square foot there are down about 30% from the peak.  I would like to believe this 30% figure is more representative of the true decline in prices since there is less effect of the shift in sales from resort to residential in this area.

Island-Wide Condo Sales:

Koloa/Poipu area sales:

There may be other interpretations of the data and comments are welcomed.  Information presented herein is deemed reliable but has not been independently verified and is not guaranteed.  Please consult with your real estate professional for his/her insight into the Kauai market.

Aloha!

Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550

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On Kauai, I'm accustomed to being able to park close and run in/run out of stores without being caught in the Christmas shopper frenzy.  Accordingly I hadn't thought much about this month's experience of parking in the #1 spot at my favorite (and only) mall. 

Holding open houses is what brought it home that this may be a bleak Christmas indeed for our number 1 industry on Kauai, tourism.  The parking lot at a popular Kapaa resort condominium is so barren that 2 days in a row, I parked in the closest spot to the entrance.  The pool and beach were both mostly deserted and the poolside bar had no patrons.  I inquired at the registration desk as to when they expected the Christmas crowd to arrive.  They responded that reservations suggest there will be no Christmas crowd this year.  I hate coal in my stocking! 

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Nearly Inaccessible Kahakuloa Village on Maui's coastline.  Population ~ 100.

Aloha!

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Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

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Another update of our Kauai real estate inventory makes it clear that Kauai's real estate inventory is continuing to shrink from August 2008 highs.  This is a positive sign for stressed-out sellers.  What remains to be seen is whether predictions of a flood of REOs in 2010 comes to fruition.  With the new year only 4 weeks off, we'll soon begin to see how that unfolds.

For those who want to know, the smooth yellow curve superimposed on the chart is an Excel 3rd-order polynomial curve fit.

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Aloha!

Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550

Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

Visit www.KauaiRocks.comfor Hawaii real estate information 

Kauai and Muai year-to-date sales statistics through November 2009 compared to the same period in 2008 show that this continues to be an unprecedented opportunity for buyers. Selection is huge and prices are down substantially There remains a large amount of inventory to be cleared out before downward price pressures ease. An upturn in number of sales is key to that and there are hints that this may now be happening. Some economists think we may be at or near the bottom of the cycle.

This Month's Update

Year-to-Date Median Sales Price (Jan-Nov 2009)

Year-to-Date Number of Sales (Jan-Nov 2009)

One of the most striking differences between the Kauai and Maui markets is condo sales (both numbers and prices).  It has been my "soft" observation that some new construction on Maui has continued through the downturn while most has stopped on Kauai and this data adds support to this.

[Data extracted from Kauai and Maui multiple list reports. Data is deemed reliable but is not guaranteed and should not be relied on for buying or selling decisions. There are likely to be differing opinions and interpretations of the data.]

Aloha & Mahalo!

Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550

Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

Visit www.KauaiRocks.comfor Hawaii real estate information 

Kauai home sales statistics have been released for the month of November 2009. The figures are island-wide comparisons of current sales versus year ago periods. Monthly values fluctuate widely and I've always preferred to use year-to-date data to average out the fluctuations. Nevertheless, it's hard to overlook the huge improvement in recent sales.

It's important to keep in mind that the data reflects what is actually selling and not necessarily a change in value of a particular property. In my experience investor purchases tend to be in higher-priced resort areas whereas owner-occupant purchases tend to be more focused in value-priced areas. My buyer clients today are much more heavily weighted toward owner-occupant than in previous years when investors dominated. More sales in value-priced areas and fewer in higher-priced resort areas will drive median sales prices down. Of course the number of sales speak for themselves although here again, an absence of investor sales will drive the numbers down.

Number of Sales

 Median Sales Price

Additional breakdown of this information is available to my clients upon request.

Aloha!

Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550

Engineering Hawaii Dreams Today--Helping Buyers Find Dream Homes & Sellers Find Buyers

Visit www.KauaiRocks.comfor Hawaii real estate information