| The potential for real estate investment in | | | | Island real estate, leading many real estate |
| Hawaii remains strong despite some reports | | | | professionals to predict that we may be |
| which indicate statewide sales prices have | | | | approaching the beginning of a buyers market. |
| decreased somewhat over the past year. In | | | | |
| fact, home sale statistics actually indicate | | | | Kauai |
| that prices are higher than they were just | | | | |
| one year ago across the board statewide. | | | | Kauai real estate home sales have shown an |
| | | | increase of $140,000 over the past year, |
| Maui | | | | indicating a bright future for continued |
| | | | activity. When sales on neighboring islands |
| On Maui 68 homes were closed on in April and | | | | were showing a reduction sales on Kauai |
| while more than 50% of them did sell for less | | | | remained strong. These sales translated to an |
| than $700,000 the median sales price is still | | | | overall increase of 25% from last year. While |
| higher than this time last year; $16,000 | | | | interest rates remain relatively low, both |
| higher, in fact. Further study of April Maui | | | | investors as well as individuals interested |
| real estate sales statistics indicate that | | | | in non-foreign tropical retirement locales |
| while most home sale prices did remain below | | | | are ranking Kauai as one of the first options |
| the $700,000 mark this was not due to a | | | | for real estate purchases. |
| reduction in sales prices but can more | | | | |
| accurately be attributed to the fact that | | | | Oahu |
| more sales shifted to districts on Maui that | | | | |
| have traditionally been more affordable than | | | | While it is true that there was somewhat of a |
| other districts. In fact, half of the April | | | | reduction of sales in Oahu real estate in |
| sales were concentrated in just two Maui | | | | March and April, sales in May, more than made |
| districts: Kihei and the central plain. In | | | | up for that slowdown by increasing almost 10% |
| districts where median prices rose into the | | | | from this time last year. This new record |
| millions, such as Napili, Kaanapali, Maui | | | | allowed the median home price to hit over |
| Meadows and Wailea, there were only a few | | | | $665,000. Not only were homes sales prices |
| sales. This data would certainly indicate | | | | higher, but the number of homes going to |
| that while sales remain strong on Maui, they | | | | closing also increased in May over last year; |
| are shifting to more affordable and less | | | | from 366 in May 2005 to 374 this year, as |
| affluent districts. | | | | revealed by the Honolulu Board of Realtors. |
| | | | Further study of sales records indicate that |
| Even though it seems sales in higher priced | | | | the slowdown of prices in early spring could |
| districts have tapered off somewhat, this is | | | | be attributed to heavy rainfall. Once the |
| certainly no indication there is a lack of | | | | weather cleared, Oahu real estate sales |
| buyers for these areas. The fact that Maui | | | | recovered. Market conditions now indicate |
| has consistently ranked as the top | | | | strong sales activity, expected to continue |
| destination island keeps buyers interested in | | | | throughout the year and beyond. |
| purchasing second homes as well as retirement | | | | |
| homes. The bustling activity of Lahaina Town | | | | Considering all aspects of the Hawaii real |
| continues to bring in tourists interested in | | | | estate market, the slight fluctuations we've |
| restaurants perched on the beach as well as | | | | experienced over the past few months have |
| live music and theatre venues while Kaanaplai | | | | done nothing to diminish overall sales |
| offers plenty of amenities such as luxury | | | | activity. More and more people are |
| condos and shopping opportunities to keep | | | | recognizing the benefits of enjoying the lush |
| residents and tourists alike satisfied. | | | | tropical setting of the Islands while |
| | | | reveling in the security remaining in the USA |
| Big Island | | | | can provide. After the initial shock of 9-11 |
| | | | passed, individuals interested in retiring as |
| Median sales price for Big Island real estate | | | | well as those looking for vacation options |
| have shown one of the largest increases in | | | | realized foreign locales were no longer as |
| the state, up almost $200,000. While there | | | | attractive and began looking for safer |
| have been such reductions in prices, these | | | | alternatives. The Hawaiian Islands provides |
| were primarily focused on homes that were | | | | all the comforts and familiarities of America |
| admittedly overpriced when first entering the | | | | while retaining an environment that somehow |
| market. For the most part, homes prices on | | | | still feels like another country altogether. |
| Big Island remain historically high. The | | | | As large segments of the Baby Boomer |
| lowering of overpriced homes has allowed the | | | | population begins the retirement phase of |
| real estate market on Big Island to stabilize | | | | their lives it is anticipated the Hawaiian |
| with an increase in inventory. This has | | | | real estate market will remain strong. |
| allowed buyers to gain more choices in Big | | | | |