LIHU‘E — Real estate sales continued to fall in August on Kaua‘i, according to Multiple Listing Services. The number of residential sales, compared to August 2008, fell more than 22 percent while the dollar amount dropped some 51 percent. Median
LIHU‘E — Real estate sales continued to fall in August on Kaua‘i, according to Multiple Listing Services.
The number of residential sales, compared to August 2008, fell more than 22 percent while the dollar amount dropped some 51 percent.
Median home prices also continued to slide last month, falling more than 11 percent compared to August 2008.
“The reason for the drop in average price is the abundance of sales by distressed sellers and buyers taking advantage, perhaps, of the substantial savings from the higher prices of the past and the need to sell by way of short sale (properties which sell for less than what is owed) or foreclosure,” Neal Norman, principal owner and broker of Koa Properties, said in an e-mail.
He added that “the current market could be seeing a bottoming out and smart buyers are scooping up the good deals … hence the drop in average price.” Norman is slated to join real estate forces with Hanalei North Shore Properties’ Mimsy and Pierre Bouret and Tiffany Spencer.
Not only do real estate sales affect agents, they affect the county as well, according to Kaua‘i County Finance Director Wally Rezentes.
“Real property taxes are the county’s largest source of revenues,” he said.
The taxes generate more than 80 percent of the general fund’s revenue.
“The significant reduction in real property values will have a significant impact to the county, especially in the upcoming fiscal year,” he said.
It has been projected by county officials that real property assessments will decrease in “certain tax categories” by some 20 percent, which means revenues will decline by about $12 million to $17 million, according to the director.
“New construction also has a short- and long-term effect on the county’s revenue base,” Rezentes said. “The county receives building permit revenue and additional revenue from real property taxes once the building improvements are completed.”
Department of Public Works officials said they expect building permit revenue to decline this year by some 27 percent compared to 2008.
For more August real estate statistics, see the sidebar.
Kaua‘i real estate
Average residential median sales prices for August
Location 2008 2009
Waimea $490,000 $400,500
South Shore $565,000 $402,500
Lihu‘e $450,000 $371,000
Kapa‘a/Wailua $485,000 $445,500
North Shore $1,500,000 $827,500
Number of residential sales for August
Location 2008 2009
Waimea 3 2
South Shore 5 2
Lihu‘e 3 3
Kapa‘a/Wailua 9 8
North Shore 7 6
Volume of residential sales for August
Location 2008 2009
Waimea $1,776,800 $801,000
South Shore $2,760,000 $805,000
Lihu‘e $1,438,000 $1,226,000
Kapa‘a/Wailua $4,505,999 $4,050,741
North Shore $16,158,754 $6,167,500
• Coco Zickos, business and environmental writer, can be reached at 245-3681 (ext. 251) or czickos@kauaipubco.com.
