2007 Kauai Real Estate In Review

2007 continued to be a buyer's market island wide. Large project additions to inventory ranged from improved and unimproved parcels at Kukui Ula in Poipu Beach, to upscale ocean front condos at Waipouli Beach Resort in Kapaa, to partial completion of the luxury attached single family homes at Kau'ilani in Princeville. This was the 2nd straight year of a slowdown in construction island wide along with lower sales for all types of real estate. Sales for single family homes, condos and land island wide were off from 2006 by 13.89%, 57.74% and 47.22% respectively.

The north shore was least affected showing a decrease in overall sales of 9.82% for single family homes, 2.44% for condos and 7.32% for land. The median price for a single family home actually increased 3.97% on the north shore to $1,099,000 despite a 9.82% drop off in sales volume. The island wide median price for a single family home as of December 2007 was $650,000, down 3.70% from December 2006.

It is widely believed that we will see the market hit bottom by mid to late 2008. What does this mean? For the wise investor or homeowner it means 2008 will offer the best opportunities to buy real estate on Kauai since 2000.

With current 30 year fixed loans available under 6% and a market "ripe" for a turnaround, don't be lost in the shuffle. The Mortgage Banker's Association reported that home loan applications climbed 28.4 percent on a seasonally adjusted basis between the first and second weeks of January. This double-digit gain comes on the heels of a 32.2 percent rise in the index one week earlier, the largest in four years. Since this is an election year, expect mortgage rates to stay low.


January 2008

Larry Barton, RA, CENTURY 21 All Islands Kauai
P.O. Box 223700, Princeville, HI 96722
(808) 639-7532 Cell   /   (808) 240-2417 Direct line   /   (808) 826-9884 Fax   /   Email Larry