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