My last Kauai real estate absorption rate posting back in April looked pretty awful as can be seen from the first chart below. My current update (2nd chart) shows substantial improvement and the other color bands are now much more visible. Residential homes on the West Side and the Central Lihue areas are now just about out of the dreaded red zone and that 156-month supply of South Shore condos is down to 55 months. We've still got a lot of red-zone stuff but it's falling!
While the absorption rate shows substantial fluctuations due to a small number of sales in a 90-day period, it's encouraging when combined with other indicators. Kauai inventory peaked a year ago and continues to decline and the number of sales is showing an uptick. All these data indicators suggest an improving real estate market which may be a call to action for would-be-buyers who have been waiting for a sign.
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April 2009 Data
September 2009 Data
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