Honolulu Star-Bulletin Business
Home sales up,
prices down in ’96

Maui saw the biggest sales increase
during the year, new figures show

By Jerry Tune
Star-Bulletin

Home and condominium sales last year generally were better on most islands in 1996, but prices were mostly lower.

The biggest sales increase was 33.2 percent for Maui homes, while the biggest drop in sales was 15.3 percent for homes on the east side of the Big Island, according to figures compiled by Prudential Locations Inc. The figures are for home resales and do not include new home sales.

The largest price increase was for East Hawaii homes, up 11 percent, while the biggest drop in prices was 25 percent for East Hawaii condominiums. This figure was sharply affected by sales of leasehold condominiums at a discount due to a short lease period.

"Last year was definitely an improvement over 1995," said Mac Lowson, president of the Maui Board of Realtors. "The biggest success for home sales came in areas like Keehi, Wailea, Makena and Upcountry. Other areas didn't experience quite as much success."

Lowson said these sales went to local buyers at entry-level prices in the mid-$200,000 range and to local buyers moving up to the $400,000-to-$600,000 range.

"Condominiums went primarily to out-of-state investors," Lowson said. "We've seen more people come from California, mostly Northern California. For 1997, we should see more from Southern California because their economy has improved. That could be the biggest single change for us this year."

Lowson, a broker with Lowson & Associates, said the sales increases were helped by prices dropping from the high levels of six years ago, and more confidence from buyers that their jobs are secure.

The Kona side of the Big Island had more sales due to lower prices, said Mary Love, president of the Kona Board of Realtors.

She is optimistic about 1997, especially if more "snow birds" come from the mainland to escape the brutal winter temperatures. "We usually have done better in the first quarter because of the snow birds," said Love, owner of Mary M. Love Realtor.

Kauai saw more out-of-state investors last year, and sales figures jumped. "Our prices have dropped," said Jane Abramo, president of the Kauai Board of Realtors. "A lot of people have been sitting on the fence and waiting. These are not new visitors."

As prices returned to the levels of 1987-88, more visitors decided to buy, she said.

Kauai home and condominium prices peaked in 1991-92, before Hurricane Iniki devastated the island and its tourism-based economy. "We don't have a lot of industry here to support local buyers, so tourism is important," said Abramo, a broker with Napili Properties.

The east side of the Big Island still has a depressed economy with the closing of sugar mills, but Charles Aki, president of the Hawaii Island Board of Realtors, is upbeat. "The market in 1996 pretty much found the bottom," Aki said. "I think 1997 is on the way up. I'm not overly optimistic but the mainland economy is improving (which helps tourists who buy real estate in Hawaii)."

Aki, owner of Charles Aki Realty, also said the move of C. Brewer to Hilo "will give confidence to some people who have been down."




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