Happy Holidays!

My fall newsletter just became a holiday newsletter.  I wish I could tell you that sales were so brisk that I did not have time to write, but that would be a stretch!  Here in Kauai we survived a tsunami warning (which was a false alarm), a presidential election and Black Friday.  The economists told us that real estate in Hawaii would see a definite upswing after the election, no matter who won.  We will see how that prediction works out when the winter visitors arrive.  Their theory is that there are many baby boomers out there who have put off retirement but are now ready to move into the market.

At the present time, our inventory is lower than I can ever remember.  From Kalihiwai Ridge to beyond Hanalei, there are only 44 residential homes and 60 condos on the market. In Princeville, only 10 lots are on the MLS; one listed at $209,000.  With prices still low, some owners are holding their units off the market hoping for more robust prices.

There are only one or two foreclosures or distressed properties on the North shore where I live. These will soon be gone, but a relatively large number of REO’s and few short sales during the past two years and a poor economy have kept prices down. Even though we have had a 14% overall increase in sales volume island wide this year, we are still selling at 2004 price levels. This means buyers today would be paying approximately the same on a comparable property as eight years ago. If financing were figured into the equation, overall costs would be much lower. As of this week, 30 year fixed mortgages were being locked for around 3.3 % compared to 7.5 % in 2004.

Visitors are coming to Hawaii in record numbers.  Flights continue to be full.  More and more visitors are spending most, if not all, of their vacation on Kauai.  This is especially good news for condo owners who purchase units as second homes and then rent them to vacationers when they are not using them.

Alaska Air is leading the industry with new routes linking Kauai with west coast cities. Just a few days ago Alaska announced a daily non-stop to and from San Diego to Lihue.   Alaska is also connecting Kauai with Canadian cities through Seattle.  WestJet also caters to the Canadian market, flying seasonally to and from Vancouver.

The restaurant at Hanalei Bay Resort that burned in 2011 is literally rising from the ashes.  The large roof beams went up last week, and the rest progresses each day.   HBR is becoming a tennis center for the community.  Their free children’s program has garnered much positive press and comments from community leaders.

Another restaurant is coming in replacing the Paradise Bar and Grill.  We hear that it will be a named Tiki Iniki.  The “Coconut Wireless” has had many restaurants filling that space, but I believe that the latest rumor is fact.

Kukui’ula in Poipu was awarded the Gold Nugget Grand Award from the Pacific Coast Builders Conference for best use of land for a recreational project/resort and for its commitment to the “Hawaiian plantation” architectural design.   Its private golf course offers limited tee times for non-members.  The expanding number of restaurants and shops in the nearby shopping center give tourists and residents more choices.

We expect to see many of you over the holidays and after. For those who would like to check out real estate beforehand click on to my website www.joewilliamshawaii.com. If you find some properties of interest, call or e-mail and I will check them out with you.

Mele Kalikimaka and Hau’oli Makahiki Hou

Mahalo,