LIHU‘E — The number of homes and condominiums selling on Kaua‘i are increasing, but prices remain largely depressed, recent MLS reports reveal. “MLS statistics show that our market has strengthened with the number of residential sales a hearty 29 percent
LIHU‘E — The number of homes and condominiums selling on Kaua‘i are increasing, but prices remain largely depressed, recent MLS reports reveal.
“MLS statistics show that our market has strengthened with the number of residential sales a hearty 29 percent higher than that of 2009,” Kaua‘i Board of Realtors President Kelly Liberatore said Friday. “While there is still some skepticism in the minds of some buyers, particularly those coming here from the Mainland, I would caution them to remember that one cannot see the bottom of a market. One can only look behind them to see it.
“The astute buyers, on the other hand, have taken note of the depressed prices, coupled that with interest rates that haven’t been this low in decades and recognized that now is the time to buy,” she said.
Prices will start to rise as the excess inventory is absorbed and becomes scarce, real estate experts say.
November’s year-to-date sales volume, which measures total transaction values, has increased marginally, which indicates that sales are occurring in lower-value units.
Compared to 2009 hyper-depressed levels, sales volume is up 8 percent to $211 million for residential properties and up 16.84 percent to $68.7 million for condos.
For the same period of 2005, sales volume was $525.5 million for residential and $305 million for condos.
Kaua‘i County had 1,179 real estate listings during the month of November, including residential properties, vacant land, commercial properties, condominiums and businesses, and 65 sales.
Based on those figures, there is approximately 18 months of inventory locally. More than three or four months of inventory is generally considered to be a buyers market.
During the first week of October, there were 1,291 properties on the market, 54 sales for the previous month, and 24 months worth of inventory.
Of November’s 65 sales, 11 were foreclosed, real estate owned properties, representing 17.19 percent of the total sales market.
“Yes, we are still filtering through bank-owned properties and short sales, but those types of properties are receiving multiple offers with the winning bidder coming in over the asking price,” Liberatore said, “the effect of which will create a momentum for 2011 and ultimately drive prices back up as that inventory is absorbed.”
Bankrate.com says Kaua‘i’s average interest rate on 30-year fixed mortgages is 4.87 percent and 4.89 percent nationally. In October and early November, interest rates had dipped to 4.25 percent.
•Vanessa Van Voorhis, staff writer, can be reached at 245-3681 (ext. 251) or by e-mailing vvanvoorhis@kauaipub
co.com.
HOMES No. of Sales % Change Median Sale Price %Change All of Kaua‘i 316 41.07 $475,000 4.86
Waimea 16 – 27.27 $400,000 6.10
Koloa 75 31.58 $462,500 – 7.50 Lihu‘e 37 76.19 $435,000 – 7.45 Kawaihau 108 50.00 $405,000 1.76
Hanalei 80 53.85 $645,000 5.74
CONDOS No. of Sales % Change Median Sale Price %Change
All of Kaua‘i 217 49.66 $345,750 – 11.91
Waimea 0 0 $390,000 7.07
Koloa 37 32.14 $390,000 – 25.56
Lihu‘e 68 36.00 $149,000 – 26.05
Kawaihau 50 233.33 $371,000 2.63
Hanalei 62 19.23 $441,950 – 26.34
