The most common question posed to Kaua‘i Realtors by residents and visitors alike is, “How’s the market?” The answer can be good or bad depending upon your perspective as either a buyer or a seller. Buyer For a potential buyer,
The most common question posed to Kaua‘i Realtors by residents and visitors alike is, “How’s the market?” The answer can be good or bad depending upon your perspective as either a buyer or a seller.
Buyer
For a potential buyer, in addition to greater seller motivation, the market has four aspects that distinctly work to your advantage; inventory, interest rates, incentives and most importantly, price. buyers have many choices in the various property categories, interest rates are at historic lows, sellers are often offering incentives to perspective buyers to make their property more attractive and in most cases, list prices for properties are as low as they have been in 6 or 7 years.
Seller
From a seller’s perspective, although activity and the corresponding rate of sales is increasing year-to-year, the median sales price is flat or decreasing year-to-year.
For the first half of 2010 versus the first half of 2009, there was an increase in the number of residential unit sales by 71 percent, a 62 percent increase in the number of condominium sales and a 36 percent increase in vacant land sales island-wide. However, the median sales price so far in 2010 for residences has declined by 1 percent, condominium median sales prices decreased by 15 percent year-to-year and vacant land sale were up 6 percent. To add more perspective, median sales prices from just two years ago for residences are down 28 percent, condominiums are down 56 percent and land is off 58 percent.
Median prices
As of June 30, 73 residences are in escrow or under contract with a median list price of $500,000. 176 residences changed hands in the January through June 2010 period with a median sales price of $473,500. There are 35 condominiums in escrow or under contract with a median list price of $335,000 and 113 condominiums were sold in the first half of 2010 with a median sales price of $264,350. 35 vacant lots are in escrow with a median list price of $295,000 and there were 49 vacant land sales January through June with a median sale price of $295,000. These pending transactions indicate a positive momentum as we enter the busier summer season.
For additional median sales price comparisons if we look back to June of 2008, the median sales price for Kaua‘i residences was $657,500 whereas it is $473,500 today. Condominiums were $599,500 then and are $264,300 now and vacant land was $700,000 in 2008 as opposed to the $295,000 median sales price we see today.
Sales volume
Regarding sales volume, 354 residences were sold January through June in 2006 and so far this year nearly half as many homes were sold or 176. 404 condominiums were sold by June of 2006 and only 113 to date. 267 parcels of vacant land sold in 2006 through June and a scant 49 have sold this year.
Foreclosures
According to the latest RealtyTrac U.S. Foreclosure Market Report, monthly foreclosure activity in Hawai‘i rose 34 percent in April 2010 from the previous month to 1,474 properties with foreclosure filings. This latest state total also represents a 115 percent year-over-year increase in foreclosure filings from April 2009.
“Hawai‘i foreclosures were up markedly in April and more than double from the same time last year,” said James J. Saccacio, chief executive officer of RealtyTrac. “The largest rise was in auction notices, which climbed 67 percent for the month. Although the state’s unemployment remains low, home prices continued to fall further than the national average during the fourth quarter of last year, which is no doubt contributing to the recent rise in the foreclosure level.”
Hawai‘i ranked 33rd in the country in total foreclosures for the month. With one in every 348 housing units receiving a foreclosure filing, its foreclosure rate ranked 11th among the 50 states.
Hawai‘i County posts top foreclosure rate for April with one in every 179 housing units receiving a foreclosure filing — 2.2 times the national average and twice the state average — Hawai‘i County posted the highest county foreclosure rate in the state for the month. Maui County came in second, with one in every 187 housing units receiving a foreclosure filing — twice the national average and 1.9 times the state average. Kaua‘i County was third, with one in every 313 housing units receiving a foreclosure filing — 1.2 times the national average and 1.1 times the state average.
Honolulu County led all counties in the state, reporting 581 properties with foreclosure filings for the month. Hawai‘i County came in second highest, documenting 445 properties with foreclosure filings. Reporting 353 properties with foreclosure filings for the month, Maui County ranked third highest. Kaua‘i County was fourth, reporting 95 properties with foreclosure filings.
Hawai‘i accounted for less than 1 percent of the 333,837 properties with foreclosure filings reported nationwide in April. Total U.S. activity declined more than 9 percent from the previous month and was 2 percent below the level reported in April 2009. One in every 387 U.S. housing units received a foreclosure filing during the month.
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 an example, as many as 46 percent of all Hawai‘i foreclosures through April 2009 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 Hawai‘i has a high percentage of second home, resort and investor activity as a whole.
It is important to note that 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.
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. They can generate a comparable market report for your specific property type and property location.
• The Kaua‘i Board of Realtors is a nonprofit organization comprised of 520 Realtors and associates from the bank, mortgage and escrow industry. Visit www.kauaiboard.com for more information.
