Kauai, Big Island home sales plunge
POSTED: Thursday, December 04, 2008
Big Island and Kauai single-family home sales plunged at least 40 percent year-over-year in November as many potential homebuyers have tightened their belts in the nation's economic recession.
The number of single-family home sales on the Big Island fell 41.3 percent to 64 from 109, while the median sales price dropped 19.3 percent to $282,500 from $350,000 a year earlier. Condominium sales decreased 17.2 percent to 24 from 29, and the median sales price plummeted by more than half to $226,200 from $463,000, according to the Hawaii Information Service.
Still, buyers are out to scoop up deals in the residential market, with some paying strictly in cash since loans are harder to get now, according to Paula Beamer, a real estate agent for the Big Island's Parker Ranch Realty Inc.
“;It's not dead not by a long shot, there are still buyers out there and good sales going on - a lot of them are bottom fishing,”; she said. “;I don't know how much more prices are going to drop. I feel like we're pretty close to the bottom now.”;
There have been some surprisingly high sales.
For instance, two residential lots totaling 1.35 acres fronting the golf course at Mauna Kea Resort sold this week for more than $7.5 million cash, she said.
“;Some people wouldn't know there's a recession going on,”; she said. “;If people can get their money out of the stock market, they've taken it and are buying real estate. Real estate is a better investment than the stock market right now.”;
Meanwhile, Kauai's single-family home sales fell 40 percent to 15 from 25. Nevertheless, the island saw a 17 percent spike in the median sales price to $615,000 from $525,300 in 2007. Condo sales on the Garden Isle dropped 41.7 percent to 7 from 12, while the median sales price took a 45 percent nosedive to $425,000 from $772,000.
“;It seems like people are kind of holding out for the prices, a lot of people don't think they need to sell and that maybe the market is going to come back faster than we think,”; said Phil Fudge, principal broker for Kauai Landmark Realty. “;There's over optimism about that so that's why the median sales price (for single-family homes) is holding up.”;
Optimism also is the reason days on the market for properties are increasing since prices aren't coming down enough to see much activity, he said.
Neighbor island home prices
Median price for homes sold on the Big Island and Kauai and the percentage change from the same month last year:
Big island
| Single-family homes | Condos |
| Nov. 2008: $282,500 | Nov. 2008: $226,200 |
| Nov. 2007: $350,000 | Nov. 2007: $463,000 |
| Change: -19.29% | Change: -51.14% |
Kauai
| Single-family homes | Condos |
| Nov. 2008: $615,000 | Nov. 2008: $425,000 |
| Nov. 2007: $525,300 | Nov. 2007: $772,000 |
| Change: +17.08% | Change: -44.95% |
Source: Hawaii Information Service
