Aloha:

Summer on Kauai has been one with sunny days and temps in the mid 80’s. Nights have been cool with light trade winds and a few showers. No air conditioning is needed for sleeping.

Our summer contentment was interrupted recently by a fire that destroyed the Bali Hai restaurant at the Hanalei Bay Resort. No official cause has been given, but it did start in an area undergoing repairs. The Bali Hai and the Happy Talk lounge had been closed with a scheduled reopening later this summer. Both the restaurant owners and HBR management pledge a complete rebuild, but it is too early to set a projected time frame. Guests at the resort have not been affected. Most HBR rentals are enjoying a near record occupancy.

The Prince golf course which has been closed for a complete renovation of the sand traps has extended reopening to November. Late in the process, the decision to completely rebuild the greens was added. These needed improvements should restore the Prince to its #1 rating among Hawaii resort courses. Some careful readers have noted that my recent newsletters have given some construction schedules that proved too optimistic. Although I rely on press releases and official statements, we all know that “island time” may be a bit more difficult to judge than mainland time

The new Kukui’ula golf course at is now fully operational at Poipu.  Although private, some tee times are reserved for non-members.  Golf architects and players have given it great reviews.

Kauai is a special place and its popularity is reflected in the number of visitors to the island. 2011 may surpass the tourist record set in 2007.  There have been changes in visitor demographics. We are seeing a drop in vacationers from the east coast, but a rise in those coming from the west. Travel by Canadians is up by more than 50%.  Japan is down as expected after the Tsunami, but Australia and New Zealand show a 41% increase.  Kauai merchants and realtors are quite happy as spending and buying from Commonwealth visitors reflect their positive exchange rate.

Real estate purchases are for the most part unchanged. Sales and prices are down slightly from a year ago. Wealthy buyers who have always coveted a piece of paradise are buying. Bargain hunters and investors continue to pick up distressed properties. Local owners who see good value have been moving up. But the visitor who has yearned to own here is sitting on the fence despite some tremendous opportunities.

Kauai’s Planning Commission is not allowing uncontrolled growth. Most new structures will be confined to designated areas allowing the island to retain its rural character. The area around Princeville is reaching controlled capacity. The next market cycle will most likely reveal fewer listings and higher prices. In short, if you can, buy now!

As a realtor I often ask my clients what if anything they regretted about buying property here. The most common response is “I wish I had come sooner”.  To check on the Kauai market, please log onto my website www.joewilliamshawaii.com. Call or e-mail me, and we can discuss listings or some properties that are not officially listed but are available.  Kauai’s diversity is reflected in oceanfront estates, charming cottages, rustic cabins, fixer-uppers, and modern, luxurious condos. There is something here for everyone if one knows where to find it. As your realtor, I can help you find that perfect place.

Enjoy your summer.