Thursday, January 11, 2007

Neighbor island sales and prices down in 2006

While Oahu saw sales slow and prices rise slightly in 2006, both sales and prices were down on the neighbor islands last year. The Star-Bulletin has the breakdown:
Sales remained fairly steady for homes on Kauai in December: Half sold for more than $592,500, and half for less, as the median price dropped 2 percent. In December 2005, the median price of a Kauai home was $605,000.

At the market's height of summer 2005, Blachowiak recalls the median sales price on Kauai reached close to $700,000.

The Big Island is seeing the same housing trend:

On the Big Island, the median home price dropped 18 percent to $353,500 from December 2005. Despite the drop in prices, the number of homes sold declined by 41 to 160 in December.
Maui trended similar to Oahu, with home prices slightly up while sales slowed. The Maui News reports:

For the year just ended, the average price of a single-family house was $941,434, according to the Multiple Listing Service of the Realtors Association of Maui.

The median was $679,000, which means half sold for that amount or less.

Prices rose just 2 percent, after four years in which they rose by 23 percent to 25 percent per year.

The pace slowed a bit, but unlike sob stories from the Mainland, Maui’s real estate market continued active. The total of single-family closings was 1,088, which was down from 1,316 in 2005.


At 2:01 PM, Blogger Dr Housing Bubble said...

Greetings from Los Angeles. Don't feel too bad; this bubble is global so you can feel that there is a fellow housing watcher seeing the same reality.

If anything, there are areas in Southern California that have no access to beaches or any nice eye candy selling for $500,000+. The mania goes on my friend.

Dr. Housing Bubble

At 2:15 PM, Blogger repo4sale said...

I left Hawaii in 1982 & it was in the middle of a RECESSION. Hawaiian recessions are 50% longer than California. The HOT MARKET is 50% shorter than Calif. Example: 192 land deals sold in 2000-2007 and an average gross profit of 1130%. Avg. hold of 23.5 months. Can't do that in Hawaii. In Fact, can't even make 50% a year in Hawaii. I gross 50% a month on my California Deals... Something only a transplant can do. The sell window in Hawaii (hot market) is about 2-4 years. The buy market/recession is about8-11 years, too long for most. So, this is my analysis of the Hawaiian market! Your Kapahulu UH Grad 1982!

At 9:55 PM, Blogger honolulu renter said...

Thanks for the local blog. I'm bookmarking it and plan to visit more often.

We flew to Big Island for labor day weekend, and it was a train wreck, at least on Kona side. I would conservatively guess that 25% of the houses I saw were for sale. The signage all over the place looked like a carnival threw up all along the roadsides.

I haven't seen it here (Oahu) YET, but it's coming. It's NOT different here. We get mortgages from the same banks!

The high appraisals and tax assesments we saw last year delayed ARM resets as homedebtors refinanced one last time. The new teaser rates just delay the inevitable. When the teaser periods end, it will be "game over". Nobody will be able to refinance on an upside-down house.

Also, prices have dropped somewhat on Oahu. "Luxury" developments at Ala Moana and other places have skewed the median. And the open house signs are coming up like spring dasies, little by little.


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