Kauai & Hawaii Real Estate update - November 2008

Kauai’s real estate market continues to favor the buyers and likely will well in to 2009. Single family residential unit sales are down 29.94% YTD compared to the same period in 2007 while median sales prices are only down 4.94%. The North Shore was down 1414.06% YTD. Condo prices island wide are down 1.12%. While prices still have a little room to soften, values are holding up better than most markets on the mainland.

On July 29th, the Fed cut the target Fed Funds rate by one half point to 1.00%, as widely expected. The vote was unanimous and followed a coordinated half point rate cut on October 8. Mortgage interest rates however rose the last week in October. Investors have been reluctant to invest in Fannie and Freddie guaranteed mortgage backed securities. Yields required by mortgage backed security investors directly affect most mortgage rates. While rates may be a bit volatile day to day, expect interest rates to continue t o rise well in to next year.

This year’s National Housing Pulse Survey published by the National Association of Realtors revealed some interesting results. 85% believe owning a home is a good financial decision and 2/3 said NOW was good time to buy, up 12 points from last year!

Kauai is and will continue to be one of the most desirable places to live and own a second home or investment property in the world. Get in while the getting is good and mortgage rates are still below 6.5% for 30 year fixed programs! Contact me to discuss your short and long term plans for selling or owning real estate here on Kauai. Visit my website for all the latest at www.kauai-realestate.com.


November 2008

Larry Barton, RA, CENTURY 21 All Islands Kauai
P.O. Box 223700, Princeville, HI 96722
(808) 639-7532 Cell   /   (808) 240-2417 Direct line   /   (808) 826-9884 Fax   /   Email Larry