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Kauai Absorption Rate Shows Huge Improvement

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

(If the images do not show, hit your browser refresh button)Kauai Absorption Rate Chart

 

Prior Update in November

Kauai Real Estate Absorption Rate, Nov 18, 2009

 

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Richard T. Dolbeare, R(B)

Keller Williams Realty(808) 651-4550

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Comment balloon 14 commentsRichard T. Dolbeare • January 08 2010 02:15AM

Comments

Richard,

With figures like that I guess most Realtors aren't taking just six month listings.

Rich

Posted by Richard Iarossi, Crofton MD Real Estate, Annapolis MD Real Estate (Coldwell Banker Residential Brokerage) over 8 years ago

Hi Rich,

Unfortunately some listing terms have been for a year and then renewed a few more times.  That's why the new data is encouraging.

Posted by Richard T. Dolbeare, R(B), ABR, CRS...Hawaii Multi-Island Specialist (KW Island Living) over 8 years ago

This is the second time this week that I've read about absorption rate, but I'm still not sure I know exactly what it is. Outside of these two times at ActiveRain, I've never heard the term applied to real estate before.

Posted by Jim Frimmer, Realtor & CDPE, Mission Valley specialist (HomeSmart Realty West) over 8 years ago

Hi Jim.  There's been some good absorption rate posts here on AR.  I first learned about it from a July 17, 2006 Business Week article and have been tracking it ever since.

Aloha

Posted by Richard T. Dolbeare, R(B), ABR, CRS...Hawaii Multi-Island Specialist (KW Island Living) over 8 years ago

Good Info, Got me thinking.   I'm going to have to track our absorption rates closer

Bill

Posted by Bill Jones, Realtor (403-701-1739) Airdrie & Calgary Area Homes and Condos (Discovery Real Estate Ltd. - "Homes By Jones") over 8 years ago

Hi Bill, thanks for stopping by.  I bet you have some good skiing up there!

Posted by Richard T. Dolbeare, R(B), ABR, CRS...Hawaii Multi-Island Specialist (KW Island Living) over 8 years ago

Hi Richard:

Great information on Kauai...

Best wishes for a great New Year!

Posted by Toula Rosebrock, Broker/Sales Associate, Realtor, Lacey Township, (Diane Turton, Realtors, Forked River, NJ) over 8 years ago

Richard, this is certainly some good news!  How are you?  Did you enjoy Christmas and New Year's?

Hope all is well over there in the islands......we've been freezing, but our snow chances turned out to be another false alarm!  I knew when they announced school closings a day early that it wasn't gonna happen LOL!

Take care,

Ann

Posted by Ann Allen Hoover, CDPE SRES ASP e-PRO Realtor - Homes for Sale - AL (RE/MAX Advantage South) over 8 years ago

Hi Toula, it's always nice to see your comments, thanks for stopping by.

Posted by Richard T. Dolbeare, R(B), ABR, CRS...Hawaii Multi-Island Specialist (KW Island Living) over 8 years ago

Hi Ann.  I elected a quiet holiday here on Kauai rather than the frenzy of flying between islands.  It was very relaxing.  How was yours?

No snow?  You can join me then in enjoying snow pictures posted by others.  It's the best way to experience.

Posted by Richard T. Dolbeare, R(B), ABR, CRS...Hawaii Multi-Island Specialist (KW Island Living) over 8 years ago

Richard, I'm glad business is showing improvement in your part of the country.  Your charts are very eye-catching - the details really stand out.  Great job.

Posted by Susan Brown (Keller Williams NE, Kingwood Texas (Humble & Atascocita too)) over 8 years ago

Hi Susan.  Thanks for stopping by.  As we say in Hawaii, "howsit" in Texas?

Posted by Richard T. Dolbeare, R(B), ABR, CRS...Hawaii Multi-Island Specialist (KW Island Living) over 8 years ago

Richard, that sounds like good news and Hawaii's market may be on the mend. 

Jim above mentioned that he was unaware of what absorption rate is.  I've heard it defined a couple of different ways, but I like the definition that Kristal Kraft gives.

Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) over 8 years ago

Hi Nick and thanks for commenting.   I checked out Kristal's post and not only is it cute but it's very simple and easy to understand.  One thing is different in my market area and that is the number of sales which is very small.  That leads me to use quarterly sales instead of monthly.  As a simple example of why I need to do this, consider how the absorption rate would bounce around if an area has 1 sale one month and 3 sales the next month.  Is that really a 3:1 improvement in absorption rate or just a sample size that is too small?

Posted by Richard T. Dolbeare, R(B), ABR, CRS...Hawaii Multi-Island Specialist (KW Island Living) over 8 years ago

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