Kauai's Real Estate Market... to the Point!

O.K. you have seen all the Kauai statistics from my previous newsletters this year, so I won't bore you with more of the same. Sales are down, inventory is high and prices are still softening. While Kauai is typically not a big foreclosure market we are seeing more foreclosures than at any time during the market downturn beginning in early 2006. The presence of these foreclosures is prompting sellers who DON'T have distressed properties to lower their prices if they want to sell.

What does this mean to you as an opportunistic buyer? Along with 30 year fixed rate mortgages currently in the low 5's, your opportunity for making the best buys will likely be in the next several months. Kauai real estate prices are currently at 2004 levels. Seller concessions like "buy downs" of buyer's mortgage interest rates are becoming more common and significantly benefit the buyer. How does a 4% mortgage interest rate sound?

As of December 1st, we have seen more purchase contracts and closings in the last 6 weeks especially on the north shore than at any time previously this year. If this continues for another 3-4 months, we may see the light at the end of the tunnel. This would be good news for sellers and "would be" sellers and a message for buyers that their window of opportunity is narrowing. A little help from the Feds with proper allocation of the $700 billion+ bailout package would be a real plus as well.

Please contact me if you are considering a 2nd home, investment, permanent residence or a retirement home on Kauai. I am well positioned to find you the best value in an ever changing market. Call me at (808) 639-7532 or click here to email me. My website is www.kauai-realestate.com.

Best wishes to you and your family for a very MERRY CHRISTMAS!


December 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