Home sales drop on Big Island, rise on Kauai

It was mostly decreases, many in the high double-digits, last month for the residential real estate market in Kauai and the Big Island; however, the market is doing better on a year-to-date basis.

NEIGHBOR ISLES Median prices for single-family homes, condos: Kauai Single-family homes: August 2008 $545,000 August 2007 $624,500 Change -12.7% Condos: August 2008 $274,500 August 2007 $587,000 Change -53.2% Big Island Single-family homes: August 2008 $320,000 August 2007 $398,250 Change -19.7% Condos: August 2008 $287,000 August 2007 $293,403 Change -2.2% Source: Hawaii Information Service

While single-family home sales rose 23.8 percent on Kauai in August, condominiums fell 75 percent. Year to date, single-family home sales have decreased 31.8 while condominiums have fallen 38.9 percent.

"The market is really slow. Realtors are calling you back and when you want to show something you get good attention," said Debra Blachowiak, owner and principal broker for Sleeping Giant Sotheby's International Realty on Kauai.

More than half the buyers on Kauai paid $545,000 to purchase a single-family home, which represented a 12.7 percent decrease in the median price. The median condominium price dropped 53.2 percent to $274,500. Year to date, the median price paid for a single-family on Kauai only has dropped 1.5 percent to $647,500. On the other hand, the median price paid for a condominium year to date on Kauai is up 1.8 percent to $565,000.

Values have slipped so much on Kauai that short sales and foreclosures are on the rise, Blachowiak said. "Investors are coming over and making lowball offers, she said.

On the Big Island, single-family home sales slumped 46.2 percent in August while condominium sales dropped 47.4 percent. Year to date, single-family home sales have decreased by 33.4 percent and condominium sales have fallen by 27.4 percent.

The median price paid for a single-family home in August on the Big Island dropped by 19.7 percent to $320,000. The median price paid for a condominium only dropped by 2.2 percent to $287,000. Year to date, more than half of the buyers on the Big Island paid $351,250 or more to purchase a home there, which represents a 14.3 percent reduction in price. Year to date, the median price paid for a condominium increased 4.7 percent to $415,000.

All of the price reductions on the Big Island have begun to stimulate interest, said Denis Fuster, a real estate agent with RE/MAX Island Surf Realty in Pahoa.

"Our office has definitely had more inquiries for the past three months, but we've really seen interest pick up in August," Fuster said. "In the last two weeks, we've shown 20 houses and we've got six contracts on our desk."

West Coast investors and local buyers are gravitating toward homes in the $200,000 to $400,000 range, Fuster said. "Prices have come down enough that some buyers are seeing value again."