Lihue real estate market

June 16, 2010 by  
Filed under Real estate

Forest near Hanalei Bay, Kauai, Hawaii
Image via Wikipedia

The Lihue real estate market is showing increasing sales, although the overall economy of the Garden Isle remains stagnant and home prices continue to decline. 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 piece went on to state that “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.”

The overall economic recovery of Kauai, however, remains unimpressive, and a stronger rally will likely be necessary for encouraging the purchase of Lihue homes for sale. According to a June 8, 2010 article in Hawaii News Now, “The latest state report on tax revenues and building permits shows a decidedly slower economic recovery on neighbor islands than on Oahu.” The piece, composed by Howard Dicus, went on to state that “General excise tax revenues the single strongest indicator of consumer and business spending, fell 4.4% statewide in the first quarter despite March coming in 2.3% higher than year-before levels….Excise taxes were down 2% on Oahu, down 8% on Kauai, down 16% on Maui County, and down 18% on the Big Island, compared to the first quarter of 2009.”

Even the tourist sector, traditionally one of the largest components of the island economy and by extension an indicator of the Lihue real estate market, showed mixed signals in the most recent tracking period. According to a May 28, 2010 article in the Maui News, “Kauai, although its head count fell 1.1 percent to 75,509, saw spending rocket up by 14.4 percent to $75.8 million. That makes the Kauai math easy: Each visitor spent just about $1,000…”

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