Kauai Real Estate Market Report - October 2010
Kauai Real Estate Market Report- October 2010
In my third quarter newsletter, I started tracking the percentage of distressed property sales on Kauai because I believe that by doing so we can gauge the recovery of the real estate market. Like it or not, these sales affect value and as long as there are short sales and bank owned properties, the majority of properties will be affected negatively for sellers. On the other hand, any buyer who can get a loan is being treated to incredible interest rates, currently in the 4% range for a 30 year mortgage!
HOMES
|
Homes Sales |
West |
South |
Central |
East |
North |
Total |
|
Total Sales |
0 |
0 |
2 |
16 |
8 |
26 |
|
Short Sale |
0 |
0 |
0 |
2 |
1 |
3 |
|
REO |
0 |
0 |
0 |
5 |
0 |
5 |
|
Auction |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total Distress |
0 |
0 |
0 |
0 |
1 |
8 |
|
% |
0% |
0% |
0% |
44% |
13% |
31% |
There were no home sales in either the west or south sides of the island. The majority of the sales were on the east side which also accounted for the highest percentage of distressed properties. While the north shore only had one recorded short sale, there were two auctions held in the month of October for million dollar plus properties. Generally, auction transactions close within 30 days so it is likely those sales will show up in November.
CONDOMINIUMS
|
Condo Sales |
West |
South |
Central |
East |
North |
Total |
|
Total Sales |
0 |
7 |
6 |
6 |
2 |
21 |
|
Short Sale |
0 |
0 |
2 |
1 |
1 |
4 |
|
REO |
0 |
1 |
2 |
2 |
0 |
5 |
|
Auction |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total Distress |
0 |
1 |
0 |
3 |
1 |
9 |
|
% |
0 |
14% |
66% |
50% |
50% |
43% |
Condominiums have the highest percentage of distressed properties and though I do not count sales in that mix if there is no mortgage involved, there are transactions that would fall into that category in terms of having the component of a significant loss. An example would be at Waipouli Beach Resort where a unit that sold for $1.1 million in 2006 sold in October for $475,000.
LAND
|
Land Sales |
West |
South |
Central |
East |
North |
Total |
|
Total Sales |
0 |
4 |
0 |
4 |
3 |
11 |
|
Short Sale |
0 |
0 |
0 |
0 |
0 |
0 |
|
REO |
0 |
1 |
0 |
2 |
0 |
3 |
|
Auction |
0 |
0 |
0 |
0 |
0 |
0 |
|
Total Distress |
0 |
1 |
0 |
2 |
0 |
3 |
|
% |
0% |
25% |
0% |
50% |
0% |
27% |
In October there were three sales on the north shore that illustrate timing in real estate history. The first is a 5 acre ocean bluff parcel with rights to build 2 houses and a guest house. It originally sold for $1.55 million in 2000, sold again in 2001 for $2.4 million and sold in October for $4 million. Another ocean bluff CPR was purchased in 2003 for $499,000 and sold in October for $1 million. The third parcel was bought in 2007 for $1.175 million and sold in October for $638,000. As you can see, most of the owners who are selling properties purchased in the early 2000’s are not showing a loss, while purchasers from the mid 2000’s and on are lucky if they come away with any cash at closing. As a side note, even though the Seller in this example is obviously suffering a loss, the chart above will not show this as a short sale since there was only a $447,000 mortgage involved.
October 2010 - Year to Date Statistics
|
# of Sales |
2010 |
2009 |
# change |
% change |
|
Residential |
276 |
201 |
75 |
37% |
|
Condo |
199 |
129 |
70 |
54% |
|
Land |
93 |
60 |
33 |
55% |
|
Dollar Volume |
2010 |
2009 |
# change |
% change |
|
Residential |
$181,638,074 |
$156,350,360 |
$25,287,714 |
16% |
|
Condo |
$63,295,535 |
$53,048,987 |
$10,246,548 |
19% |
|
Land |
$53,178,750 |
$24,897,204 |
$28,281,546 |
113% |
|
Median Price |
2010 |
2009 |
# change |
% change |
|
Residential |
$480,000 |
$450,000 |
$30,000 |
7% |
|
Condo |
$345,750 |
$407,000 |
<$61,250> |
<15%> |
|
Land |
$290,000 |
$284,500 |
$5,500 |
2% |
