April, 2012
Aloha!
As most of you know, I now live in Seattle, though I retain my Hawaii real estate license and continue to do some business there.
I have also started a new blog, Domesticus, that I am having a ball writing. Today’s post is about a young lady who buys and sells foreclosures, though the blog is not generally about real estate, but about society and culture with a twist of humor. I hope you will check it out at www.domesticus.com
OK, enough self-promotion and on to Kauai news!
The Great Flood
The island survived last month’s Great Flood, but it was definitely no fun for those who were there. Parts of Kuhio Highway were closed for several days, a culvert collapsed, parking lots at some Kapaa hotels were under water, and there were landslides, sewage overflows, power outages. And I probably don’t need to tell you that the Hanalei Bridge was closed. It was quite a mess, caused by heavy, heavy continuous rainfall—the same thing that led to the Ka Loko dam burst back in 2006 (though improper dam maintenance was likely an equal cause in that case). If you missed it, be glad. If you’re curious and want to see some photos and video, click here.
Now it’s back to sunny skies and temps in the upper 70s. Nice beach weather, and it’s also “shoulder season” for airline fares until they rise after Memorial Day. If you don’t have kids or grandkids in school, you should consider March or April for a trip. You’ll avoid crowds and will have more choice in accommodations, where you may also find better discounts. There’s more rain on the North Shore at this time than in the summer months. But odds are very low that you’d experience a flood like the one the island just had.
Real Estate
If you’re looking to buy real estate, there are still some bargains and distress sales out there. You won’t necessarily find them reflected in the price statistics, because Kauai continues to attract people from Hollywood and the top echelons of business, which skews prices upward. The $2-million-plus luxury market is thriving, but everywhere else, it’s a very mixed picture.
North Shore
On the North Shore (from Kilauea to Haena), prices for homes were up 28 percent overall for this year so far through March, compared with 2011 prices. The median home price jumped to $930,000, compared with $725,000 last year. The number of sales—27 so far—is the same as last year’s at this time. Looks like you’re priced out and, with sales not decreasing, there’s no pressure on prices—right?
Wrong!
A little leasehold house in Wainiha (an area between Hanalei and Haena; actually, a subsection of Haena) was listed for $159,900 and sold for $129,000. A couple of little houses in Kilauea sold for $255,000 and $260,000. Of course, these are little bitty, funky-old-shack kind of places, NOT the kind of places you could use for vacation rentals. But if you don’t have a large family to accommodate and don’t mind a very basic interior that might need some renovating, something like this could work for you.
Moving on up, several homes in Princeville sold for under $600,000, which would have been an impossibility a few years ago.
On the other end of the scale, a 137-acre estate in Kilauea sold for $6.75 million. And the old Kilauea plantation manager’s estate, built in 1942 and completely restored, also sold, along with the 13 acres surrounding it, for $5 million. Several estates in Anini Vista and in Hanalei sold for over $2 million. This activity naturally raises the median prices But if your last name isn’t Brosnan, Stiller, Midler, Merchant, or Crichton; if your latest film isn’t playing at a movie screen near you, don’t give up. Mortgage rates are lower than ever, and there are still bargains to be found on the home front.
A lot of bargain North Shore condos have sold too. A Sandpiper went for $228,000; an Alii Kai II, for $285,000; a sparkling Nihilani, for $330,000. There are still some really good deals out there, but bidding has become competitive, and condo prices are now up 34 percent from last year, with the median price standing at $495,000 compared with last year’s $368,250. Twenty condos have sold this year, compared with 14 at this time last year. If you want a bargain condo, try to get your offer in early—and then be prepared to wait. And wait. I’m getting ready to close next week on a short sale condo that has been in escrow for an entire year. The buyer is getting a good deal and is happy. But you have to have the patience of a saint for some of these short sale listings. Banks simply do not know how to sell real estate. They’re getting better, but it’s still very slow cutting through their bureaucracy. Fortunately, the Fed has informed us that interest rates will stay low for the rest of this year, so it may be worth the wait for some of you if you can lock in a good rate. It’s really a personal decision.
For those of you interested in land, there have been 6 sales on the North Shore to date, compared with 8 at this time last year. The median price is $375,000; last year’s was $719,000. But of course, with so few sales, median prices don’t tell you much. It’s nearly impossible to get land loans these days, but there are some deals if you’re a cash buyer. Some Princeville lots are available for under $300,000. Outside of Princeville, be sure to check into what you can build and what kinds of permits are required. Some parcels are “off the grid,” meaning you don’t have access to county utilities. If you see a land listing that looks too good to be true, it’s probably because there are issues with building, access, or utilities. Occasionally, there are issues with land deeds, too, though not often these days. All of these issues will be mentioned in the listing; just be aware that if you’re doing a land search by price, some of the “bargains” you initially spot are priced that way for a reason.
South Shore
Down in Poipu and Koloa, the median home price for the year to date stands at $475,000, a 23 percent decrease from last year’s $617,750. Twenty homes have sold, compared with 26 at this time last year. But again, the numbers might be misleading, in this case because the district includes many homes outside the vacation areas where most of you are looking. Home prices in Poipu Kai, the premier community near the Grand Hyatt, start in the $700,000s.
Condo prices in Poipu and Koloa show a 46 percent drop, with this year’s median price for the year so far at $270,000, compared to last year’s $501,000.There are some sweet deals for condos on the island’s south side, primarily for one-bedroom units.
Eight land parcels have sold this year in Koloa/Poipu, with the median price year-to-date at $300,000, down 19 percent from last year’s $370,000. In the current listings, land prices in the district start at $150,000, and there are 36 listings for under $400,000. On the other hand, if you’re in the mood to splurge, there’s a 59-acre beachfront parcel for sale for a cool $60 million. I’ll be happy to supply details for either category.
Thank you for being such faithful and supportive readers for all these years. As always, if you want help with your own island search, don’t hesitate to phone or drop me a line.
Aloha!
As most of you know, I now live in Seattle, though I retain my Hawaii real estate license and continue to do some business there.
I have also started a new blog, Domesticus, that I am having a ball writing. Today’s post is about a young lady who buys and sells foreclosures, though the blog is not generally about real estate, but about society and culture with a twist of humor. I hope you will check it out at www.domesticus.com
OK, enough self-promotion and on to Kauai news!
The Great Flood
The island survived last month’s Great Flood, but it was definitely no fun for those who were there. Parts of Kuhio Highway were closed for several days, a culvert collapsed, parking lots at some Kapaa hotels were under water, and there were landslides, sewage overflows, power outages. And I probably don’t need to tell you that the Hanalei Bridge was closed. It was quite a mess, caused by heavy, heavy continuous rainfall—the same thing that led to the Ka Loko dam burst back in 2006 (though improper dam maintenance was likely an equal cause in that case). If you missed it, be glad. If you’re curious and want to see some photos and video, click here.
Now it’s back to sunny skies and temps in the upper 70s. Nice beach weather, and it’s also “shoulder season” for airline fares until they rise after Memorial Day. If you don’t have kids or grandkids in school, you should consider March or April for a trip. You’ll avoid crowds and will have more choice in accommodations, where you may also find better discounts. There’s more rain on the North Shore at this time than in the summer months. But odds are very low that you’d experience a flood like the one the island just had.
Real Estate
If you’re looking to buy real estate, there are still some bargains and distress sales out there. You won’t necessarily find them reflected in the price statistics, because Kauai continues to attract people from Hollywood and the top echelons of business, which skews prices upward. The $2-million-plus luxury market is thriving, but everywhere else, it’s a very mixed picture.
North Shore
On the North Shore (from Kilauea to Haena), prices for homes were up 28 percent overall for this year so far through March, compared with 2011 prices. The median home price jumped to $930,000, compared with $725,000 last year. The number of sales—27 so far—is the same as last year’s at this time. Looks like you’re priced out and, with sales not decreasing, there’s no pressure on prices—right?
Wrong!
A little leasehold house in Wainiha (an area between Hanalei and Haena; actually, a subsection of Haena) was listed for $159,900 and sold for $129,000. A couple of little houses in Kilauea sold for $255,000 and $260,000. Of course, these are little bitty, funky-old-shack kind of places, NOT the kind of places you could use for vacation rentals. But if you don’t have a large family to accommodate and don’t mind a very basic interior that might need some renovating, something like this could work for you.
Moving on up, several homes in Princeville sold for under $600,000, which would have been an impossibility a few years ago.
On the other end of the scale, a 137-acre estate in Kilauea sold for $6.75 million. And the old Kilauea plantation manager’s estate, built in 1942 and completely restored, also sold, along with the 13 acres surrounding it, for $5 million. Several estates in Anini Vista and in Hanalei sold for over $2 million. This activity naturally raises the median prices But if your last name isn’t Brosnan, Stiller, Midler, Merchant, or Crichton; if your latest film isn’t playing at a movie screen near you, don’t give up. Mortgage rates are lower than ever, and there are still bargains to be found on the home front.
A lot of bargain North Shore condos have sold too. A Sandpiper went for $228,000; an Alii Kai II, for $285,000; a sparkling Nihilani, for $330,000. There are still some really good deals out there, but bidding has become competitive, and condo prices are now up 34 percent from last year, with the median price standing at $495,000 compared with last year’s $368,250. Twenty condos have sold this year, compared with 14 at this time last year. If you want a bargain condo, try to get your offer in early—and then be prepared to wait. And wait. I’m getting ready to close next week on a short sale condo that has been in escrow for an entire year. The buyer is getting a good deal and is happy. But you have to have the patience of a saint for some of these short sale listings. Banks simply do not know how to sell real estate. They’re getting better, but it’s still very slow cutting through their bureaucracy. Fortunately, the Fed has informed us that interest rates will stay low for the rest of this year, so it may be worth the wait for some of you if you can lock in a good rate. It’s really a personal decision.
For those of you interested in land, there have been 6 sales on the North Shore to date, compared with 8 at this time last year. The median price is $375,000; last year’s was $719,000. But of course, with so few sales, median prices don’t tell you much. It’s nearly impossible to get land loans these days, but there are some deals if you’re a cash buyer. Some Princeville lots are available for under $300,000. Outside of Princeville, be sure to check into what you can build and what kinds of permits are required. Some parcels are “off the grid,” meaning you don’t have access to county utilities. If you see a land listing that looks too good to be true, it’s probably because there are issues with building, access, or utilities. Occasionally, there are issues with land deeds, too, though not often these days. All of these issues will be mentioned in the listing; just be aware that if you’re doing a land search by price, some of the “bargains” you initially spot are priced that way for a reason.
South Shore
Down in Poipu and Koloa, the median home price for the year to date stands at $475,000, a 23 percent decrease from last year’s $617,750. Twenty homes have sold, compared with 26 at this time last year. But again, the numbers might be misleading, in this case because the district includes many homes outside the vacation areas where most of you are looking. Home prices in Poipu Kai, the premier community near the Grand Hyatt, start in the $700,000s.
Condo prices in Poipu and Koloa show a 46 percent drop, with this year’s median price for the year so far at $270,000, compared to last year’s $501,000.There are some sweet deals for condos on the island’s south side, primarily for one-bedroom units.
Eight land parcels have sold this year in Koloa/Poipu, with the median price year-to-date at $300,000, down 19 percent from last year’s $370,000. In the current listings, land prices in the district start at $150,000, and there are 36 listings for under $400,000. On the other hand, if you’re in the mood to splurge, there’s a 59-acre beachfront parcel for sale for a cool $60 million. I’ll be happy to supply details for either category.
Thank you for being such faithful and supportive readers for all these years. As always, if you want help with your own island search, don’t hesitate to phone or drop me a line.
