With all the talk about abandoned homes and bank-owned properties (known as REO's) across the nation, I was curious about the impact of this on Kauai. With no good source of detailed REO information. I decided to do a little research.
How many Kauai REO's are out there?
First of all, the current issue of Pacific News published information obtained from Title Guaranty Escrow Services suggesting that there are "at least 334 bank-owned houses and condominiums in Hawaii - the majority on Oahu, with 141, and the Big Island, with 108". According to my math, that leaves 85 REO's apportioned between Kauai and Maui counties. Based on the relative size of those two markets, I'd guess about 25 of these are on Kauai. Clearly that's not many at this time.
How many Kauai REO Sales?
Next I looked at the number of REO sales as reported in the Kauai multiple list service. Unfortunately there is no robust method of searching out these type of sales. However, a search in agent remarks for commonly-used terms used to designate REO sales showed 12 such sales in 2008 and 8 so far in 2009. This amounts to only 2% of 2008 sales but 8% of 2009 sales.
Where are we headed?
That 8% figure is an eye-opener and suggests that REO sales are destined to be a significant portion of the marked as we move forward.
[Clearly these figures are only approximations and other methods could give different results.]
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