Market rising

Kauai Realtors are expecting 2016 to be a profitable year.

“There’s been an increased trend in people buying homes and condos over the last couple years on the island, and I don’t see anything that tells me this year isn’t going to be any different,” said Phil Fudge, a Realtor with Kauai Landmark Realty.

Islandwide, there were 488 homes sold in 2015. That is up 4.5 percent from the previous year; 467 homes were sold in 2014. That is according to data provided by Hawaii Information Services, which divides Kauai into five districts: Waimea, Koloa, Lihue, Kawaihau and Hanalei.

Condominium sales also saw an increase in sales last year; 361 units were sold, which is a 10 percent increase from 2014. That year, 328 units were sold, according to the data.

Commercial properties also saw a 13 percent increase in sales from 2014.

Most of those sales are coming from renters who became buyers, said Kelly Libertore, a Realtor with Coldwell Banker Makai Properties.

“Kauai residents are taking advantage of buying; there’s been a lot of renters who are now saying they want to buy a home, she said.

People are buying because the interest rates are low, she said.

“But there’s a looming threat the interest rates will rise, so people should buy now, if it’s possible,” she said.

Most of her clientele are people in their late 20s and early 30s who are buying their first home, Libertore said.

“A lot of them were born and raised here, went to college, got a job on the island, and can afford to make that leap,” she said.

The education process is crucial for these first-time buyers, Libertore said.

“We want them to buy a house, and if we can make them see what avenues are open for them, they will grasp onto those opportunities,” she said. “So I try my hardest to have those conversations with my clients.”

Seeing an upcoming generation with strong buying power is a good sign, she added.

“In the last two years, I’ve had a lot more Kauai residents buying a home than I’ve had in a long time,” she said. “It’s heartwarming to see the Kauai young people come to the table and say ‘I’m going to buy a house.’”

Last year, Libertore worked with a young woman who was buying her first home. It was a “wonderful experience,” she said.

“There’s a lot more females under 30 who are taking that step,” she said. “They’re the best clients; they’re smart, and make a good living.”

Fudge and Libertore say the North Shore, especially Hanalei and Princeville, were popular last with investors and other people who have money to spend.

“Hanalei has the big sales,” Libertore said.

Fudge, who works mostly with Mainland investors, agrees.

“We get a lot of investors from the West Coast, where there’s a lot of advertising for Princeville, so when people come here, they’re thinking Princeville.”

In 2015, there were 138 homes sold in the Princeville area, a 26 percent increase from 2014. Condominium sales also increased; 96 condominiums were sold, up from the 86 units that were sold in 2014.

Poipu is another popular spot for investors, Fudge added.

In the Koloa area last year, the number of residential sales decreased, 5.5 percent, but the number of condominium units increased 26.4 percent, according to the data.

Cities like Lihue and Kapaa were popular with “ordinary people” in 2015, Lbertore said.

“They’re places that are in a good location, but are still affordable,” she said.

The upward trend in real estate on Kauai was recognized in a list by SmartAsset, a New York-based financial company. The company ranked Kauai No. 2 in a list of the best places to buy a home in Hawaii in 2015.

According to the study, the average monthly mortgage payment on Kauai was $1,569 and the average monthly rent was $1,800. The average home price was $387,072.

Kauai ranked higher than Maui, Honolulu and Kalawao, and was beaten out by the Big Island, whose average home price was $373,644, according to the study.

Kauai’s ranking wasn’t surprising, Fudge said.

“Maui is pretty priced out, and Honolulu is just another big city,” he said.

Kauai’s rural areas could have played a role in the ranking, Libertore said.

“We have pockets that are affordable and are less competitive than other places,” she said.