Kaha Lani Condo adjacent to Wailua County Golf Course
January 2010’s sales statistics showed a Kauai market with more energy and more opportunity than one year ago. We had 52 transactions for the month as compared to only 20 last January. That’s an increase in transaction volume of 160%.
The median price however (the price of the property that falls in the middle of the total number of properties for sale on the island) has adjusted down as compared to one year ago. The median price of a single family Kauai home was down to $375,000 as compared to $466,785 just one year ago. And compared to the peak of the market in mid 2006 when median prices on the island of Kauai were above $650,000.
Kaha Lani REO offers lowest price in the complex in 8 years
It’s good to see land transactions starting to happen too as buyers realize that owning a parcel of land on Kauai is much more affordable now. The total dollar volume of land transactions for January 2010 was up a whopping 321% from just one year ago. Construction loans are still available for those getting ready to build. However, the land loan market has become more constrained with lenders like American Savings and First Hawaiian Bank requiring 35% or more down payment. Over 50% of the land transaction volume in January 2010 were cash only sales.
Hale Honu – Princeville REO 2 BR condo for $239,000
REOs, bank-owned properties and Short Sales comprised 35% of the Kauai real estate market and the percentage of transactions coming from that distressed market segment continues to grow statewide. Buyers who want to take full advantage of this segment of the Kauai market need to have their pre-approval (different than pre-qualification) and their proof of funds ready to submit with any offer and as in all transactions, but especially when dealing with the banks, CASH is KING. Email me for a list of all Kauai’s distressed properties (foreclosure and pre-foreclosure).
Currently there are 127 Kauai properties in escrow. Some of these are short sales which are waiting for the bank’s approval and that can sometimes take a while. It is essential if you are going to pursue purchasing a short sale that your buyer’s agent properly sets your expectations. As a buyer it is essential that you understand the process you may be up against. Until all the lien holders have agreed on the terms of the deal, as a buyer, though you have agreed on a price with the seller and come to a meeting of the minds, you really DO NOT have a deal.
January Kauai Statistics from Hawaii Information Services
|Increase #||Increase %|
|Total # of sales||20||52||32||160.00%|