Today’s market may be the perfect time for you to take advantage of what industry experts are calling the “Triple I-P”.
I – Incentives: There are incentives of all kinds available to people wanting to purchase.
I – Interest Rates: Many professionals believe that interest rates will go up from where we are now. They are still at historic lows making it easier to qualify for a new mortgage.
I – Inventory: The number of homes to choose from is high so you have more choices available.
P – Pricing: The residential median sales price has dropped back to the pricing we saw 6 years ago. Again, many professionals agree that won’t last forever.
Is the market finding a bottom? I think so.
It’s been almost 4 years since the Kauai real estate market started declining in the face of the global economic crisis. Year after year values have continued on a downward trend. Today the healthy characteristics of supply and demand seem to be better balanced.
As reported by Hawaii Information Service MLS Statistics, the residential median sales price for the island of Kauai was $450,000.00 in the first 8 months of 2010 matching the median sales price in the first 8 months of 2009. During this same period in 2010 Kauai saw a 53.59% increase in the number of residential sales indicating a change in Buyer’s confidence.
Researching further back to the first 8 months of 2004 for comparison, MLS data reported that the median sales price for residential properties was $452,500.00. This was at a time when conforming 30 yr. fixed interest rates were in the ~5.85% range, whereas today per bankrate.com the overnight average is at 4.52%; up 4.36% from last week.
Year to date, Kauai REO* foreclosures continue to be one of the most active market segments averaging 63 days on market while obtaining an impressive average of 97.7% sale price to list price ratio. The Kauai REO market is continuing to see a steady stream of distressed properties coming to market after ownership has reverted to the lenders. Check out our foreclosure gallery for a listing of current REO inventory.
*Real estate owned or REO is defined as ownership of a property that has reverted to the lender after an unsuccessful sale at the foreclosure auction.