Kauai, Big Isle home prices slide

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Median home prices and sales on Kauai and the Big Island continued to slide in July.

NEIGHBOR ISLAND PRICES Median sales prices for single-family homes and condos: KAUAI HOMES July 2008 $610,000 July 2007 $678,000 Change -10.0% CONDOS July 2008 $380,000 July 2007 $575,000 Change -33.9% BIG ISLAND HOMES July 2008 $299,000 July 2007 $385,000 Change -22.3% CONDOS July 2008 $324,500 July 2007 $360,000 Change -9.9% Source: Hawaii Information Service, Realtors Association of Maui

Single-family home sales on Kauai dropped by 9.1 percent in July and the number of condominium resales dropped a massive 48.2 percent, according to data released yesterday by Hawaii Information Service.

More than half of the buyers on Kauai paid $610,000 for a single-family home last month, which was down around 10 percent from a year ago. The Kauai median condominium price dropped 33.9 percent to $380,000.

On the Big Island, single-family home resales dropped by 39.6 percent and the number of condominium sales fell by 30.2 percent. More than half the buyers on the Big Island paid $299,000 or more for a single-family home, which was a 22.3 percent reduction from 2007 levels. Condominium prices on the Big Island decreased 9.9 percent to $324,500.

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Median home prices and sales on Kauai and the Big Island continued to slide in July as both islands grappled with the lingering impacts of a significant decline in tourism, higher fuel prices and shattered consumer confidence.

While single-family home sales on Kauai dropped by 9.1 percent in July to 30 from the year-prior 33, the number of condominium resales dropped by a massive48.2 percent to 14 on Kauai, according to data released yesterday by Hawaii Information Service.

More than half of the buyers on Kauai paid $610,000 for a single-family home last month, down around 10 percent from the year-ago $678,000 median. The Kauai median condominium price dropped 33.9 percent to $380,000 from $575,000 last year.

"That news is actually worse than it appears because the numbers are coming off of 2007 which was another down year," said Phil Fudge, a real estate agent with Kauai Landmark Realty in Kapaa. "Things are quite slow here."

While Fudge said that he is getting lots of Internet inquiries about the Hawaii market, faltering consumer confidence has caused sales to lag, he said.

"People sound excited at first and then they get lukewarm and say that they want to check their cash position," Fudge said.

Fudge said that prices on Kauai have bottomed out so much that he advises most clients to wait to put their properties on the market unless they have to sell.

"Unless they want to sell at a discount price, it will just languish on the market," he said. "Days on the market are increasing like crazy."

Still, Fudge is hesitant to call the bottom of the market. Things still could get worse for the Garden Isle, he said.

On the Big Island, single-family home resales dropped by 39.6 percent to 96 from the year-ago 159 .The number of condominium sales on the Big Island fell to 30, a 30.2 percent decrease from the year-prior's 43 sales

On the Big Island, the median sale price for a single-family home fell 22.3 percent to $299,000 from last year's $385,000 median. Condominium prices on the Big Island decreased 9.9 percent to $324,500 from $360,000 in the prior year.

"We're encouraging sellers to work with the first buyer that walks into the door because it might be the best offer," said Paula Beamer, a real estate agent with Parker Ranch Realty in Waimea. "You have to throw out the red carpet to accommodate the buyer as much as possible."

While homes and condominiums that are priced well are still moving on the Big Island, Beamer said that there are a lot of listings that are approaching a year on the market.

"There's a lot of inventory out there," Beamer said. "I think a lot of buyers are waiting. I don't' know why they are waiting. I don't think that it will go any lower than this."

As a result of price drops, Beamer said sales in the $1 million-plus category have continued to pick up.

"That market is still active," she said.