Now that weâ€™re into August, we have another monthâ€™s worth of statistics to be mindful of. Here are Julyâ€™s Kauai real estate market statistics. I have removed Commercial and Business sales for clarity.
Hereâ€™s my quick commentary (I know it comes on the eve of Paul Brewbakerâ€™s speech tomorrow, but Iâ€™m sure its similar information):
In terms of number of sales:
- We are at the lowest point in more than 12 years.Â We have been there 4+ months.Â You can see a graphical representation of this trend on the stats chart of our Kauai real estate page. The chart is at the bottom of the page, with the blue line showing the # of sales and the red/brown showing the Median Prices.Â Keep in mind that the charts on our site are still a few months behindâ€¦ if we were to include the last 3 months, you would see the continuing decline.
Stubbornly, all of the median prices on the island are still high:
- Part of this is a natural expression in the market. Most of our new inventory has been high-end in price, and buyers who can afford higher-end properties are less impacted by the mortgage crises, so the number of higher-end transactions holds steady (or goes up) while the lower-priced listings sell less frequently. So the â€˜medianâ€™, literally the middle of all of the sales, gets dragged up.
- Part of it is also sheer denial on the part of people who are trying to sell their homes, and the Realtors they hire. Prices are just too high compared to the demand, period.Â Now is the time for clarity, honesty, and pragmatism when it comes to pricing. Take condominiums as an example: There are currently 564 condominiums listed for sale on Kauai. The market is on pace, at best, to sell around 220 this year. The simple math tells us that the average seller is going to be on the market for 2.5 years. Our clients are not expecting this.
We have to take a pro-active role in pricing the products weâ€™re hired to sell.Â The facts are, if the property isnâ€™t priced AHEAD of the slowing market, then we have to prepare our clients to be on the market for an extended period of time, like 18 months to 2 years.
OKâ€¦ thatâ€™s my take on Julyâ€™s stats.Â Bring on August.