Throughout the first three quarters of 2009, the sales activity of residences, condominiums and land have generally increased quarter-to-quarter. With only four weeks of data, Q4 is on track — for residences and condominiums anyway — to have the highest
Throughout the first three quarters of 2009, the sales activity of residences, condominiums and land have generally increased quarter-to-quarter.
With only four weeks of data, Q4 is on track — for residences and condominiums anyway — to have the highest number of sold transactions all year and even out perform Q4 of 2008. Vacant land however is tracking flat at best and from an activity and median price point perspective is the weakest portion of the Kaua‘i Real Estate market.
Bear in mind that the Kaua‘i real estate market is an insulated one with a relatively small sampling section, therefore a high or low dollar sale, a new condominium project or subdivision can dramatically affect the statistics. Kaua‘i also attracts resort, second home and investor types of buyers, which also has a significant impact on market activity.
Hawai‘i ranked 37th in the country in total foreclosures reported for the month of August. With one in every 583 housing units receiving a foreclosure filing, its foreclosure rate ranked 20th among the 50 states according to RealtyTrac. Kaua‘i County posted the state’s top foreclosure rate in August, with one in every 138 housing units receiving a foreclosure filing. Maui County had the second highest foreclosure rate, with one in every 369 housing units receiving a foreclosure filing during the month. Hawaii County posted the third highest foreclosure rate, where one in every 434 housing units received a foreclosure filing.
The foreclosure rate on Kaua‘i and in Hawai‘i can also be attributed to mainland buyers and investors defaulting on resort properties purchased over the past few years. As many as 46 percent of all Hawaii foreclosures through April were non-owner occupied properties versus 30 percent of non-owner occupied foreclosures across the rest of the country during the same period. The State of Hawaii has a high percentage of second home, resort and investor activity as a whole. According to RealtyTrac, Hawai‘i, accounted for less than one percent of the foreclosure filings reported in August 2009, which made the state a minor contributor to the nation’s foreclosure activity. RealtyTrac includes commercial properties, which include condo-tels and timeshares in the foreclosure data, and sometimes includes properties multiple times in the three-phase foreclosure process.
What’s next? It does appear though that there are economic indicators and signs that maybe we have bottomed out insofar as the real estate market activity is concerned. With foreclosure activity in Hawaii on the rise and the looming specter of option adjustable-rate mortgages resetting to significantly higher payments in the next two-years, the real estate market recovery is still fragile, but showing signs of life.
The good news is that buyers can still find motivated sellers, some of whom may offer seller financing. Interest rates still hover at historic lows and first-time buyer incentive programs may be extended. When using the Median Sales Price as a barometer, the sold property prices on Kaua‘i are now comparable to 2004 or earlier levels.
For sellers, they are starting to find market activity has picked-up and inventories have been reduced which should give them some solace.
If you would be interested in seeing how your neighborhood is faring contact your Realtor or the Kaua‘i Board of Realtors at 245-4049.
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• The Kaua‘i Board of Realtors is a nonprofit organization comprised of 565 Realtors and associates from the bank, mortgage and escrow industry. For more information visit www.kauaiboard.com.
