Kauai, Big Island
home sales rise

Big Isle single-family home
prices jump 53.7 percent,
while on the Garden Island,
prices lift 57.5 percent

Sales of single-family homes and condominiums posted double-digit gains last month as strong demand from baby boomers combined with low inventory to hike prices on the Big Island and Kauai.

On the Big Island, half the previously owned single-family homes sold in January went for more than $352,750, an increase of 53.7 percent from a year earlier. But due to the scarcity of homes on the market, sales last month topped out at 190, only a slight increase from January 2004.

"The high-end market is just ripping, but limited inventory continues to be a problem," said Koa Realty sales agent Dave Lucas.

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Big Island condominium prices fell slightly from December's record $324,500, but the year-over-year performance was strong. The number of condominium sales increased by 9.1 percent from January 2004, while prices soared 18.1 percent to $294,000.

Strong demand from wealthy baby boomers has driven prices high, especially in West Hawaii, Lucas said.

"The market is at an all-time high and it and looks like it's going higher," Lucas said "As long as demand stays strong, prices will just keep rising."

The buying climate for Big Island buyers is chilly, because there are not that many choices, said J. Henry Scroggin III, who has worked in Kona as a buyer's agent for 15 years.

"The sellers are calling the shots since the demand is high," he said, adding that it isn't uncommon for buyers to find themselves having to offer the asking price even for homes needing repairs.

Big Island inventory is so limited, especially in upscale Keauhou, Waikoloa and Kona markets, few sellers will negotiate, Lucas said.

"Full-price cash is the name of the game," he said.

Like the Big Island, Kauai posted record prices for both single-family homes and condos as baby boomers and retirees gobbled up inventory for second homes, said Ken Kubiak, broker-in-charge with Century 21 All Islands in Kilauea.

"Kauai's finally gotten discovered," Kubiak said.

"We have more buyers than sellers," Kubiak said. "We can't build homes quick enough right now."

More medium-priced homes are coming on the market in the next several years, but contractors can't keep up with demand and most properties are sold before developers can finish building them, Kubiak said.

"Every one of them that comes on the market is sold in pre-sales," he said.

The strong demand for new homes is also driving prices higher because buyers have been more willing to pay top dollar for new construction, he said.

The median price for a single-family home on Kauai didn't budge from December's record $575,000, but is up from $364,000 from January 2004.

Condo prices jumped to $443,000 last month from $362,000 a year earlier.