Even as Kaua‘i’s real estate market remains red-hot with a mid-range home here costing a half-million dollars, experts are predicting prices could stabilize. The median price of a single-family home dropped from $528,000 in June to $506,500 last month, according
Even as Kaua‘i’s real estate market remains red-hot with a mid-range home here costing a half-million dollars, experts are predicting prices could stabilize.
The median price of a single-family home dropped from $528,000 in June to $506,500 last month, according to information from the Hawaii Information Service.
“Real estate is cyclical,” said a real-estate professional with Coldwell Banker Bali Hai Realty in Hanalei. “It doesn’t mean that prices are going to dramatically drop. It peaks and stalls there.”
Even as prime-lending rates at many major state banks rose yesterday, up from 4.25 to 4.5 percent, the number of days it takes to sell a property here has increased. It’s a sign, say industry experts, that price rises here could be slowing even as the U.S. Mainland slows.
“Let’s face it. How high up can the prices go?” asked the real-estate professional, who requested anonymity.
Answer: no one knows for sure, but even the price of vacant land here is breaking records, selling for as much as land with a home on it.
For example, 17 tracts of vacant land in Hanalei sold for a median of $900,000 in July, driving the island-wide median to $587,000 — nearly triple the $204,500 median this time last year. Only 36 parcels were sold on Kaua‘i last month, compared to the Big Island, where 517 vacant lots there sold last month for a startling low median of $20,000.
The median is the level at which half of all items are more and half less. A median price is less skewed than an average by a few really expensive or really cheap property sales.
The median price of a condominium here slipped from $420,000 in June to $373,500 last month.
Only 64 homes were sold here in July, down from 71 in June, while 44 condos sold, down from 53 in June.
Kaua‘i has five real-estate districts. Here are the number of homes and condos sold in July, and the median price, by district:
- Waimea: four homes, $312,500; no condos.
- Koloa: nine homes, $695,000; 16 condos, $414,500.
- Lihu‘e: 10 homes, $406,000; 12 condos, $229,500.
- Kawaihau: 23 homes, $435,000; eight condos, $381,000.
- Hanalei: 18 homes, $846,500; eight condos, $450,500.
Phil Hayworth, business editor, may be reached at 245-3681 (ext. 251) or phayworth@pulitzer.net.
