Aloha:
All seasons are
beautiful in Kauai, but spring is special. We survived a
tsunami warning that did not materialize. We would have slept
through all of the excitement if not for three a.m. phone calls
from worried relatives on the mainland. The heart wrenching
photos and news reports from Japan made us realize how lucky we
were.
Japanese
visitors are projected to be down, but that will impact Oahu and
Maui more than Kauai. Kauai tourist numbers are back,
surpassing the peak year, 2007. The 2010 census shows 67,000
permanent residents on island. Of all counties, Kauai had the
smallest growth rate in the state. Although we have a distinctly
rural character, the visitor industry gives us shopping, dining
and recreation options normally found only in more populated
regions.
Slow but steady
economic recovery is projected. The unemployment rate is now at
6.3% down 3% from two years ago.
One reason for
the tourist increase is that Kauai now has more nonstop flights
from the mainland. WestJet has a flight from Vancouver leaving
at 3:15 p.m. and arriving in Lihue at 6:30. There are frequent
connections from many Canadian cities. Alaska Airlines recently
added nonstop flights to Lihue from Oakland and San Jose to pair
with its daily Seattle run. (Alaska has become my favorite. My
wife and I flew from Boston to Lihue with one stop in Seattle
for under $300 each last fall.) Southwest Airlines may be
headed in this direction. Press releases this week reported
that Southwest is ordering twenty new jets for delivery in 2012
that have long range capability of flying over water.
A winter visitor
asked me why I did not include in my last newsletter that the
Prince golf course was closed. There is a very simple answer.
The closing was sudden with little fanfare. The sand traps are
being renovated and improved, and the entire course is being
better manicured than in recent years. The schedule for
reopening is mid-to-late summer. The Makai course is in great
shape even with the big increase in play. The Poipu Bay course
reopened on schedule.
At Hanalei Bay
Resort, the new owners of the restaurants are busy renovating
and planning for their opening with the projected target date
now June 1. The new Koloa Landing at Poipu became the first
property in Hawaii to fly the Wyndham Grand Flag. The new
resort features eighty-five one to four bedroom villas available
for rental or for purchase.
The real estate
market is active. Sales at the low end are quite attractive to
locals. Bargain hunters are now picking up bank short sales and
foreclosures. Many of these distressed properties were newly
constructed condos purchased in 2005-6 by mainland buyers. Some
of these have been discounted up to 50% off the original
purchase price. After a down market investors are always the
first to come back in as they have studied market trends.
Moreover they know that with mortgage rates still under 5%, the
2011 market index is actually lower than it was eight years
ago. On average, Kauai homes and condos are selling at or below
2003 levels
For those who
love to analyze data, I will be installing market trends on my
website
www.joewilliamshawaii.com. You can also check out MLS listings and other
information about Kauai.
We hope to see
you on the Garden Island this year. Be sure to call or e-mail
me so that I can help you find that perfect property here in
paradise.
With Much Aloha

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