Kauai Real Estate October Statistics – Good News and Getting Better
Well we’re into a new month, November, and there are two months left to this year. Often times in the “neighbor island” markets (Kauai, Maui, Hawaii, Molokai, Lanai), the fall season is very slow and the market does not pickup until winter when tourism increases, snowbirds arrive, and many mainland residents seek refuge from the cold of winter by traveling to the tropics. This year is a little different. The combination of:
- Increased affordability
- First time home buyer’s credits (for local residents),
- Supremely low interest rates, and
- A general sense of an improving economy
has caused October sales on Kauai to haveÂ the most encouraging statistics of the year. For the first time in many months, the number of Kauai Real Estate transactions and the transaction volume, two different stats, are higher than this time last year. I know, you’re thinking,” well wasn’t it last October when the proverbial “shxx hit the fan”?“ Yes, but the transactions that closed in October were mostly contracts that commenced 45-120 days earlier. Take a look at the number of transactions and the gross dollar volume of those transactions of October 2009 compared with October 2008.
Kauai’s October Sales Volume increasedÂ 24.30 percent over the sales volume of October 2008. In the residential sector, 29% of the homes were either Kauai short sales or Kauai REO properties. This continues to be an escalating trend in our market and a big factor in the downward price pressure. One thing you may notice is that despite the nice increase from October 2008 to October 2009 in condo and single family home sales, the land market continues to be the softest segment of the marketplace. Land loans now often require 40% down payment, and many lenders do not want to provide loans on raw land. However, take a look at the comparative percentages from the prior four months of sales year to year to see just how exciting these October numbers are. Many economists are saying the worst of this recession is behind us. The GDP was up 3.5 per cent for September, and the increased number of transactions in the Kauai real estate market is congruent with these positive trends.
Check out my Kauai foreclosure gallery to see some of the best foreclosure values and