June 30, 2010

Kauai real estate market

The Kauai real estate market is showing mixed signals, including increasing home sales and declining median prices. According to a June 7, 2010 article in the Pacific Business News, “Single-family home sales on Kauai were up by 80 percent in May, while condo sales were up 38 percent compared to the same month last year. There were 27 homes sold on the Garden Isle last month, up from 15 in May of 2009, according to statistics from Hawaii Information Service. The median price for a single-family home, however, fell 30 percent in May to $420,000, down from $600,000 in May 2009. Condo sales were up last month, with 18 units sold compared to 13 units sold in May 2009. But the median price dropped 50 percent to $164,000, down from $330,000 in 2009. Year-to-date, prices in both categories were down 11 percent. The median price of a single-family home in Kauai was $468,500, and the median price of a condo was $264,350. Sales in both categories, however, soared when compared to the January-May period in 2009. Year-to-date sales of single-family homes, with 140 sold, were up 71 percent over the first five months of 2009, while the 89 condo units sold were 65 percent more than what sold during the same period in 2009.”

However, one prime example of Kauai real estate – not a Kauai home for sale but a large mixed-use project, continues to move forward. A June 11, 2010 report from the Pacific Business News by Jon Letman noted that “Despite an economic downturn lasting three years, Kauai’s largest real estate development continues to move forward, transforming Kauai’s South Shore. Kukuiula, a 1,010-acre project spearheaded by the Kukuiula Development Co. Hawaii LLC, a collaboration between DMB Associates Inc. and A&B Properties Inc., combines luxury resort residences, a 90,000-square-foot retail village, an 18-hole Tom Weiskopf golf course, clubhouse, spa and cottage-style visitor accommodations. In 2008 and 2009, new roads, a congestion-reducing traffic roundabout, beachside public parking and the Kukuiula Village retail center all came online, proving to skeptics that Kukuiula Development Co. and its partners had the staying power to survive the economic downturn. By the end of last year, the first golf holes, dotted with dozens of newly planted mature coconut palms, could be seen from the Ala Kalanikaumaka bypass built for the project.”

June 29, 2010

Hawaii real estate market update june

The Hawaii real estate market, comprising the most heavily populated island of Oahu and the smaller neighbor islands, faced the continuing challenges of foreclosures and distressed properties in the most recent tracking period. Overall, though, the Aloha State posted strong growth in the month of May. According to a June 8, 2010 article from the Pacific Business News, “Home sales on Oahu rose considerably in May, while prices for single-family homes and condominiums posted modest gains compared to the same month last year. The median price of a single-family home in May was $606,000, which was a 12 percent boost over May 2009, when the median price was $542,000, according to statistics from the Honolulu Board of Realtors. That was based on 284 home sales, which was a 31.5 percent increase over 216 sales in May 2009. Condo sales on Oahu soared 35.5 percent in May to 355 units sold, up from 262 units sold in 2009.”

The report on the health of the Hawaii housing market went on to analyze condominium sales and median prices. It noted that “Condo sales on Oahu soared 35.5 percent in May to 355 units sold, up from 262 units sold in 2009. The median price of a condo rose 4 percent to $312,500, up from $300,000 in May of 2009. ‘May’s sales figures and median prices are certainly encouraging for Honolulu’s real estate industry’ board President Brian Benton said in a prepared statement. ‘The pent up demand for residential properties are now being met with homes and condos being priced right for first-time homebuyers, those wanting to trade up to a larger home or individuals wanting to purchase investment property.’”

The delinquent home market, especially Hawaii foreclosures, continued to hound properties in the Aloha State. According to a June 18, 2010 article from the Pacific Business News, “The Maui resort tops a list of more than a dozen hotel, industrial, office and retail properties that have defaulted on multimillion-dollar commercial mortgages or have been lost to foreclosure.

The $425 million loan on the Four Seasons Maui property, which is owned by billionaire Michael Dell’s investment firm, was transferred to special servicing in April after falling delinquent on payments, according to Trepp.com, which researches commercial mortgage-backed securities and commercial mortgages.”