Kauai’s Buyer’s Market Continues

According to Hawaii Visitors and Convention Bureau, Kauai’s visitor count was up 7% in 2007 while all the other islands were down compared to 2006. Kauai’s visitor count continues to increase over the other 4 major islands as people see what paradise is really like! Most visitors return repeatedly and 1st time visitors are duly impressed.

The first two months of 2008 continued to show a weakening in overall # of sales of homes and land. The interesting trend however is that median sales prices are as a general rule increasing. 6 months ago (September ’07) the median sales price for single family residences (SFR), condos and land were $682,500, $590,000 and $400,000 respectively island wide. Sales in February ’08 show island wide median sales prices of $768,000 (SFR), $565,000 (condos – down slightly) and $898,000 (land). The resort areas on the north (Princeville) and south shores (Poipu Beach/Koloa) showed median sales price increases for February in SFR and modest fluctuations in condos and land vs. the same period in 2007.

We are continuing to see a sprinkling of foreclosures and short sale offerings which should serve the savvy investor or future homeowner well. Expect this to continue through much of the year. Kauai’s market is driven by the out of state buyer who in many cases is looking for a retirement property or second home that can be used partly as a vacation rental to offset mortgage payments.

Despite this cyclical market downturn, history has shown that real estate outperforms stocks over a sustained investment period. 5 reasons real estate outperforms stocks are Leverage, Tax Benefits, Control, Lifestyle and Value. See further explanation of this on my website www.kauai-realestate.com under the "Buying Kauai Real Estate" heading.

Allow me to help you identify the best buying opportunities on Kauai for your specific needs since 1999! Low interest rates and buyer friendly pricing means value for you the buyer! Please contact me for a free market evaluation if a second home, investment or a change in your current Kauai residence is something you are considering.


March 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