Here's a reblog of a post written by my new broker, Matt Beall, which i think makes a good point about October Sales Results of the Kauai Real Estate market. Of course, just as I was taking a flight on Monday night i met a golfer who told me his buddy fell in love with a home in Hanalei Bay and sure enough, it went into escrow today. Listing price, 12.990 Million. That being said, Matt makes some good points in his POV below...
Hi everyone, here are the Kauai sales stats, October 2008.
The first page (Number of Sales) has some dramatically low figures. Let’s take the north shore for example, only THREE houses sold on Kauai’s north shore in October. And, of the 186 condominiums for sale on the north shore (mostly Princeville) , only ONE sold in October. Kauai’s east side hasn’t faired much better… with only 7 home sales in October and zero condo sales (despite 122 Active Condo listings on the east side).
With so little volume, and especially for such a sustained period (most of 2008), the laws of supply and demand lead us to assume that prices must drop… but this is where the statistics start to fail us. There are a lot of sellers in our market who simply can’t afford to sell their homes, but who are, nonetheless, trying their hand in the market. The result is what looks like arbitrary pricing, a glut of inventory, and few sales.
Those who can afford to price their properties accurately, and who have enough information to reach accurate conclusions about the current market, are accounting for the little sales volume we have.
I can confidently say that we, at Hawaii Life, have our finger on the pulse of the market. We continue to receive an enormous amount of inquiries from prospective buyers, whether from our website or from other media. The great majority of these buyers are looking for a DEAL. Short sales, REOs (Real Estate Owned, as in, by banks), and properties that are obviously priced ahead of the market dominate the attention of the buyers in the market.
And, perhaps ironically, it seems that we have a backlog of buyers (I know that sentance is going to generate a barrage of comments, but hear me out…). The challenge we face is to sort throught the glut of inventory to find the few properties where the sellers have finally reached the conclusion to price their property accurately, IF they can afford to do so, AND they have access to enough accurate information about the reality of the market. For these reasons, our jobs as Realtors have become much more involved, on both sides of the transaction.
And, unfortnately, the State of Hawaii isn’t helping much. I’ll spare you the full diatribe here, and save it for another post… but the passage of Act 137 is going to wreak havoc for sellers of ‘Distressed Properties’ by making ‘Short Sales’ far more difficult (if even possible).
I’d love to say that the election will boost consumer confidence, and that credit will loosen up enough to add a wider variety of buyers to the pool (and perhaps help some of the existing distressed sellers get more affordable financing)… but I know better than to predict the future.
For now, we’re left sorting through the inventory for the ‘right-priced’ properties, and encouraging sellers to continue to lower their listing prices to stay ahead of the curve.
Matt Beall, Principal Broker
Ron Margolis, RA, CDPE, ABR Hawaii Life Real Estate Services 808.346.7095 email: firstname.lastname@example.org