Aloha:
Are you on your way to Kauai? Visitors are arriving on the
island in record numbers. The average daily visitor count in
the second quarter of 2012 is expected to be a 14 percent
increase over last year. The third quarter count will exceed
the peak visitor numbers of 2007 according to the Office of
Economic Development. The boom in tourism is restoring jobs
lost during the recession. Retail sales are up by 9 percent in
the second quarter and personal income is projected to be up 22
percent. All of these indicators are positive for our island.
Thanks to these gains in tourism and its popularity as a
Hollywood movie locale, Kauai is gaining more national
recognition. Barron’s just added Kauai as #2 in its 20
best places for vacation or second homes. The description of
Kauai was that it “is quainter than Oahu, Maui, or The Big
Island, and is the least developed of the major islands and the
most reminiscent of South Pacific”.
New air service is making it easier to get to here. Hawaiian
Air just inaugurated its daily nonstop flight from Honolulu to
JFK with code sharing by Jet Blue to other eastern cities.
United has started a nonstop flight from Washington, DC to
Honolulu. Allegiant Air will soon inaugurate service to
Honolulu from Las Vegas and seven mid-market cities in
California, Washington and Oregon. Connecting flights to Kauai
have never been easier. In fact over half of our visitors are
spending all of their Hawaii vacation right here on the Garden
Island.
Visitors to Kauai are unique in that most stay in condos
(vacation rentals or timeshares rather than hotels) resulting in
longer stays. Because of vacationers we have more restaurants
and other amenities than most destinations of 65,000 people.
Clients always ask for the best restaurants. Just for fun, I
researched what a variety of critics thought and came up with
the following lists: Zagat’s – Kauai Grill (St. Regis),
Merrriman’s, Roy’s, Red Salt, and Bar Acuda. AOL Travel
Guide – Duke’s, Hukilau, Roy’s, Hanalei Gourmet, and Kauai
Pasta. Local writers – Hanalei Dolphin, Roy’s, Pomodoro,
Postcards, and Kintaro’s. My conclusion is that best
restaurants are in the eye of the beholder. Try some of these
on your next visit.
Golf courses are all open for business. Hanalei Bay Resort is
upgrading its tennis program and has hired professionals to
manage it. A new pro from Turtle Bay will oversee a tennis
school, tournaments, and youth programs for guests and the local
community. Planning continues for a new exercise facility on
the North Shore. Stay tuned on that one.
For those who like statistics, data from Hawaii Information
Service reveals a continuing pattern of market improvement for
Kauai real estate. Through May 31, the number of home sales on
the island increased by 16% over the same period in 2011. Condo
sales remained the same; however, in tourist areas the number of
sales increased dramatically. The median sales price for a
home on Kauai was $452,000 while island wide condo prices
averaged $285,000. There were variations in prices in various
land districts with higher prices in the Visitor Destination
Areas that allow vacation rentals. Median selling prices in the
Hanalei district showed a 15% increase in homes and a 23%
increase in condos.
Market forecasters predict an 8% increase in real estate sales
for the year and another similar increase for next year. For
those who are looking for the bottom of the market, you just
missed it! However, prices are still low and land sales have
lagged way behind, leaving a number of “best buys” out there.
At the moment, our Kauai real estate inventory is a little
over 4 months compared with over 20 months just a short time
ago.
With 30 year fixed mortgage rates now less than 3.75% Kauai
housing is actually more affordable than in 2004 when
prices were similar. Rates then averaged around 7%. Remember a
1% increase in interest rates is roughly equal to a 10% price
hike.
If
you are coming out this summer, let’s get in touch and “talk
story’’ about Kauai. As an old coach once said to his players
before a big game, “Where else would you rather be than right
here, right now?”
Mahalo,

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