Have you been considering selling, but afraid that nothing is selling?

With the $8,000 tax credit scheduled to end Nov. 30, the number of home buyers looking to take advantage of the credit (as well as the historically low prices and low interest rates) could possibly increase as the year winds down, especially as we start seeing glimmers of an economic upturn for the real estate market. If you've been waiting for the right window of opportunity to put your home on the market, this might be the time. I'd be happy to answer any questions you might have. Feel free to call me or email me any time. For more information on the Tax Credit, visit http://www.federalhousingtaxcredit.com/2009/faq.php.

I have observed a strong increase in pending sales of Kauai homes in the under $500,000 price range, so this trend should continue through October 1, as Buyers will want to have their offers acceptd in time to close before the November 30, 2009 deadline for the tax credit. 

Some sellers have asked me why the tax credit is not helping sell higher priced homes. One important contributing factor is that married couples with a combined income in excess of $150,000 are not eligible for the first time homebuyer tax credit. Another reason is that buyers in the over $500,000 price range are often trading up and therefore not eligible as first time homebuyers.

Aloha,

JJ Leininger, RA, ABR

Makai Properties LLC

KauaiFineHomes.com

Thanks to Julie for compiling an up to date list Real Estate Owned by banks(REO's).  This is useful information for buyers looking for bargains on Kauai homes for sale. Some of these foreclosure properties are my listings. You can search the MLS at my website www.KauaiFineHomes.com, or call me for more info.

Aloha,

JJ Leininger, RA

JJ@KauaiFineHomes.com

Makai Properties LLC

Mortgage rates drop this week. This is a great opportunity RIGHT NOW for smart buyers and investors! Call me to find out more.

Interest on 30-year fixed mortgages, 15-year fixed loans, five-year adjustable-rate mortgages, and one-year ARMs all fell this week, according to Freddie Mac.
This is a great opportunity for buyers. With historically low prices, lowered interest rates and the $8000 tax credit stimulus, make sure you don't miss out. The tax credit stops at end of year. If you want to time this, you really should start your home search now to ensure you don't get caught in the end of year crunch where other procrastinating buyers will be competing for the best properties and values. Call me to set up a free, no-obligation consultation and I can help you strategize how best to move forward. But I recommend you move now and don't cheat yourself out of this opportunity.

Here is a breakdown of the mortgage rate developments this week:

- The average on 30-year financing slipped to 5.2 percent from 5.32 percent a week ago.
- The 15-year mortgage declined to 4.69 percent, down from 4.77 percent.
- Five-year ARMs were down to 4.82 percent from 4.88 percent.
- One-year ARMs fell to 4.82 percent from 4.94 percent.
   
Call me or email me to set up a consultation, or pass my information to a friend or colleague who you think might benefit from this window of opportunity.

JJ Leininger, RA

KauaiFineHomes.com

Highest Sale so far in 2009 on Kauai:

$13 million on 1/2/2009 for a North shore home on 55.43 acres.

Highest Sale in the January 1-May 26 time period in 2008 on Kauai:

$6.75 million on 1/18/2009 for 194.8 acres of raw land on the North shore.

Highest Sale in the same period of 2007 on Kauai:

$9 million on 4/9/07 for an Anina Vista home on the Kauai’s North Shore.

And finally, here is the link to the highest Sale in the same period of 2006 on Kauai:

$11,912,000 on 1/31/2006 for 473 acres of land on- you guessed it!- the North shore of Kauai.

Interesting to note that 3 out 4 of these sales closed in the month of January. Well, now I really do have to leave for my showing appointment. Thanks for reading my blog.

Aloha,

JJ Leininger, RA

KauaiFineHomes.com

You may find the attached historical sales data interesting. Some of the sales are land sales in the new Kukuiula subdivision on Kauai's south shore. In the $2 million dollar and up price range, there have been 7 closed sales on Kauai this year, plus there are 3 sales pending. This is equal to the number of sales in this time period and price range in 2004, and also in 2002.

Year, number of sales over $2,000,000 (Jan 1 through May 26):

2009, 7
2008, 18
2007, 22
2006, 24
2005, 26
2004, 7
2003, 14
2002, 7
2001. 13
2000, 6
1999, 2

I will update the blog with links to some of these listings when I have more time, but for now, I am off to show property.

Aloha,

JJ Leininger, RA

KauaiFineHomes.com

Is the Kauai real estate market turning around? I have experienced a surge in showings this month, as compared to May 2008. The lower prices are attracting more buyers, especially in the $200,000-$500,000 price range.

Just this month, I now have sales pending on two Apopo Hale homes in Kapaa, which are listed at $212,000 and $224,900. I also have a sale pending on a Hanapepe town plantation house listed at $332,000. All three of these listings are Fannie Mae owned properties. The fourth escrow opened this month was cancelled because the buyer couldn't qualify for a loan. A lot of buyers are concerned about whether or not they can qualify, and it is a simple process to find this out prior to getting your hopes up on a home that is too expensive. Kauai buyers are welcome to comment here with questions.

Land is a challeng to sell right now, because the investor/spec house builder has run for cover. Many local banks will not loan on vacant land, and those who do are requiring over 50% cash down. Sellers of homesites and raw land, who do not owe the bank, will be able to step ahead of the competition by offering owner financing to buyers.

The real estate market is very localized and I am still advising sellers with condos in the $600,000+ price range in condominium resorts which are oversaturated with listings, to leave their condos off the market if they do not need to sell right now. If they do need to sell, the condo market is still showing signs of declining prices, so it is imperative to price correctly. Price sells in this market, as there is a lot of competition for buyers.

I have been showing a lot of property and am too busy to blog during daylight hours, so good morning, and good night. It is 12:10 AM HST.

Aloha,

JJ Leininger, RA

KauaiFineHomes.com

Check out my newest listing- a Fannie Mae owned home for sale in Ulu Mahi Subdivision.

4119 Aheahe Place

This home features a great location near the Puakea Golf Course, Kauai Lagoons Golf Course, Lihue schools like Chiefess Kamakahelei Middle School, and Kauai High School. Location is also 1.5 miles to Kalapaki Beach, the Kauai Marriot, JJ's Broiler, Sushi Bushido, Mariachi's and other restaurants at Harbor Mall; and close to Kukui Grove Mall, Kmart, Costco, Home Depot, Taco Bell, Kauai Community College, and all the conveniences of Lihue.

Thanks for looking.

JJ Leininger

REALTOR-ASSOCIATE®
ABR, ASR, CSR, RECS, RFS

Makai Properties LLC

KauaiFineHomes.com 

The two lowest priced listing of a Fannie Mae owned condominiums on Kauai, which now have sales pending, each received multiple offers. This shows that there are buyers out there and if the price is right, the buyers will write offers. The first of the two is a Princeville Paniolo Condominium described as a 1-bedroom 2-bathroom condo, it is configured 2 studio rentals. It was the only Fannie Mae owned property listed on Kauai in a resort area where vacation rental are a legal use(however there is another one on the way at NihiLani). List price of $260,000 was reduced to $239,900 prior to receiving an acceptable offer. Click here to view the listing MLS #221121. These low priced condos go quickly. The second low priced Fannie Mae condo now in escrow is Halelani Village at Puhi condominium which Fannie Mae initially listed at $220,000 was reduced a couple of time, and had a list price of $169,900 when it received multiple offers and went in escrow. Here is the link to this one, which has a pending sale. Click to see MLS# 217388 Contact me for available Kauai properties, as I have several active listings with more Fannie Mae owned Kauai properties in the pipeline. Aloha, JJ Leininger http://www.KauaiFineHomes.com

Yes, you can. Rates on 30-year mortgages fell recently to the lowest level on record after the Federal Reserve launched a new effort to stimulate the struggling U.S. housing market.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85% last week, from 4.98% the previous week. This was the lowest in the history of Freddie Mac's survey, which dates back to 1971, and was down a full percentage point from a year ago. These are truly historic times and they present a great opportunity to anyone who is thinking of buying.

If you or someone you know is ready to take advantage of historic low prices and historically low interest rates, please call me or send me your referral. Don't let this opportunity pass you by.

Here are specific example of the effect home prices vs. interest rates can have on your wallet:

Example 1. Home prices fall 10% and interest rates go up to 6%. Choose A or B

A.  Purchase a home for $400,000 today with 10%($40,000) down and finance $360,000 at 4.85% on a 30 year mortgage, your monthly Principal and Interest(P&I) would be approximately $1899.69/mo. 

B.  Let's say there is room on the downside for home values to fall another 10% and room on the upside for mortgage rates to climb to 6%, and you decide to wait. If the price drops in value by 10%, then your home price would be 360,000. Put 10%($36,000) down and finance $324,000 at 6% for 30 years and your P&I payment would be $1942.54/month.

Results.  For this hypothetical scenario the smart answer is A. Even though you saved $40,000 on the purchase price(Yea!!), you wound up spending an extra $42.85 per month(Boo!!) and if you pay this over 30 years without selling or refinancing, then you cost yourself an additional $15,426 and ended up not looking so smart if you chose B.

Example 2. Home prices fall by 5% and interest rates go to 5.50%. Choose A or B

A.  Purchase a home for $400,000 today with 10%($40,000) down and finance $360,000 at 4.85% on a 30 year mortgage, your monthly Principal and Interest(P&I) would be approximately $1899.69/mo. 

B.  Home price falls by 5% to $380,000, 10% or $38,000 down and finance 342,000 at 5.5% for 30 years. Approximate P&I is $1941.84

Results. Again, A is the smart choice. If you chose A over B then you would have saved $15,173.42 over the full 30 year mortgage term.

I know it sounds crazy to spend more for a house but pay less for a house. However, if you believe that there is room on the upside for mortgage rates, then you are smart to buy now and save money in the long run.

Your Realtor,

JJ Leininger

KauaiFineHomes.com

Puako Subdivision Weekly Market Update for Friday, 3/27/2009

There are no new listings, sales, escrows or price changes to report this week. There are currently two active listings in the neighborhood. Click here for more information on the homesite at 4148 Puahala, which is listed at $389,000. This is a prestigious corner lot at the main entrance to the subdivision.

Click here for more information on the home listing for 2505 Kanio Street which is listed at $925,000. This is a large home at the end of a cul-de-sac and has a fenced back yard.

Go to KauaiFineHomes.com and search all Kauai and Hawaii properties for sale in the MLS (Multiple Listing Service).

At the Annual PHA board meeting earlier this month, there was good food, fun, and prizes. I won walkie talkies! The Neighborhood Watch Program was one of the topics discussed at the meeting. This neighborhood has pride. I have recently observed neighbors mowing, leaf blowing to clean up the grass clippings, and picking up garbage along Nuhou Street. Volunteers have been maintaining the PUAKO sign at the neighborhood entrance, the plants put in last year still look great. Mahalo for your Kokua. JJ Leininger President of the Puako Homeowner's Association.