absorption rate: 2011 Brings Continued Improvement in Kauai Absorption Rates - 03/28/11 10:56 AM
Kauai continues to move toward a more balanced market as absorption rates continue their decline. There was a time when the color red completely dominated the chart but now the "healthier" colors are reclaiming their share.  The biggest issues are with resort condos located in Poipu, Kapaa, and Princeville but those continue to improve as well.
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absorption rate: Big Improvement in Kauai Absorption Rate - 10/22/10 01:48 PM
Kauai's South Shore Poipu area is an area I specialize in and I used to cringe at the awful absorption rate of condos there which rose as high as a 10-year supply.  My July post showed a decrease to the 6-year range and now it's down close to 2 years, a vast improvement. 
In the current data, our value-priced West Side homes has spiked but this may be a short-term anomaly, time will tell.
October 2010 Update
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absorption rate: Kauai Absorption Rate Very Dependent on Island Zone - 07/09/10 08:24 AM
There have been huge improvements in Kauai's absorption rate in 2010.  At mid-year, 3 of our 5 zones are moving out of the red zone from "not pretty" to troublesome, a welcome improvement.  Still pretty ugly are the South and North Shores which are big resort areas.  Homes on the South Shore are not bad but condos need help.  The North Shore still has issues with both homes and condos.
Mid-Year Update
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absorption rate: Kauai Absorption Rate Continues to Improve - 04/21/10 02:02 PM
There was a huge improvement in Kauai's absorption rate in my January update and that improvement has continued through the 1st quarter of 2010.  Although still heavily tilted to a Buyer's Market, most categories are now in the 1-2 year range instead of 4, 5, and 10-year (resort-area condos an exception).  Most hope that we continue to build on this trend so as to achieve a more balanced market.
1st Quarter 2010 Update
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absorption rate: Kauai Absorption Rate Shows Huge Improvement - 01/07/10 06:15 PM
There has been a huge improvement in Kauai's absorption rate since my November 2009 update. The Janaury chart is shown below followed by the one from November. Although no categories are within the desired 6 months or less range, most are now in the 1-2 year range instead of 4, 5, and 10-year. This change is driven both by a decrease in the number of active listings and an increase in the number of sales. If this new trend continues to hold, it may represent a shift towards a more balanced market.
January Update
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absorption rate: Kauai Absorption Rate--Still Showing A Market Heavily Favoring Buyers - 11/18/09 11:43 AM
Because of wide fluctuations in monthly sales, the absorption rates for the different regions on Kauai continues to fluctuate.  But one thing remains consistent and that is that everything is still in the RED band(not pretty).  Kauai remains an island in paradise and also a buyer's paradise.  Our sellers will be very pleased once those bars start dropping into the other color bands.  Many agents will be pleased as well.
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absorption rate: Encouraging Signs--Kauai Absorption Rate Improving - 09/02/09 01:55 PM
My last Kauai real estate absorption rate posting back in April looked pretty awful as can be seen from the first chart below.  My current update (2nd chart) shows substantial improvement and the other color bands are now much more visible.  Residential homes on the West Side and the Central Lihue areas are now just about out of the dreaded red zone and that 156-month supply of South Shore condos is down to 55 months.  We've still got a lot of red-zone stuff but it's falling!
While the absorption rate shows substantial fluctuations due to a small number of sales in a 90-day … (0 comments)

absorption rate: Kauai Absorption Rates, Then & Now - 04/07/09 07:09 PM
Wow, what a difference 2 years makes.  I started tracking Kauai absorption rates back in February 2007 after reading an article in Business Week.  The Business week article defined ranges for good, OK, bad, and ugly and I prepared color-banded charts accordingly.  Back then, you could actually see all the color bands with red (ugly) only at the top half.  Fast forward to April 2009 and about all you can see is red!  Charts for the 2007 and 2009 are shown below.  Click on a chart for larger image.
 2007 Chart

 
2009 Chart (ooops)

What's the point of all … (6 comments)

absorption rate: Maui Housing Supply - 02/26/09 06:19 AM
This is my first update of the Maui absorption rate since September 2008 which is posted HERE.  I was amazed at the change in months supply which in some locations had doubled & tripled in 5 months.  What does all that red mean in the chart?  It means the train is in the station waiting for buyers to board and it could be departing at any time.  I sure hope the buyers don't wait too long to board!

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Search Kauai/Big Island | Search Maui | Email | About Me | Visit Website | Phone/Text (808) 651-4550
 Engineering Hawaii Dreams Today--Helping … (4 comments)

absorption rate: Kauai Absorption Rate Still Gnarly - 02/23/09 09:45 AM
I had hoped to see improvement in our absorption rate when I updated my chart.  Unfortunately that was not to be.  Condo sales continue to be especially troublesome and Kauai's South Shore and our East Side has now exceeded a 10 year supply.  I was inspired by an article in Business week to create the color bands for the different "health" levels.  Back then, the blue, green, yellow, and orange bands made up most of the chart.  Now they those colors are barely noticeable down at the bottom of the chart with everything being in the red zone.  Not pretty for … (2 comments)

absorption rate: Kauai Absorption Rate--Today and 2 years ago - 12/18/08 02:57 PM
The December absorption rate chart for the island of Kauai is posted herein.  Clearly the supply of homes and condos continues to far exceed a healthy rate of sales for most island zones.  The one exception is the central zone of Lihue which is comparatively HOT with less than a 1 year supply of homes.  This exception has continued throughout the year and I would classify it as more than an anomoly at this point.  Clearly the Lihue area has a relatively high demand for homes compared to what's available.  I still don't have anything other than guesses about the reason.  … (2 comments)

absorption rate: Kauai Housing Supply Overview - 10/08/08 05:33 AM
The supply of Kauai properties has increased substantially compared to the mid-August statistics.  This is especially true for condos which have now increased to a huge 5+ year supply across the island.  This appears to be due to a marked decrease in sales more so than an increase in listings.  The supply of homes is better and are even relatively tight in the central Lihue zone.
The chart background colors indicate what is healthy (blue & green) and what is not (red).  This is per the Business Week article referenced in the chart. The disparity between homes and condos is likely a … (5 comments)

absorption rate: Maui Absorption Rates - 09/24/08 02:54 PM
I have made prior posts of Kauai Absorption Rates (click link for latest).  Now that I'm active in the Maui market as well, I'm posting the Maui absorption rates.  It's quite interesting that, like Kauai, the lowest absorption rates are in the area that is the center of commerce.  I can't help but wonder whether that shows a desire to live in less remote areas.  I'd be interested to hear from others as to whether they are seeing any correlation between remote areas and high absorption rates.  Here is the Maui chart.

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absorption rate: Improvement In Kauai Residential Absorption Rate - 08/16/08 07:20 PM
Kauai Lagoons Preliminary Information Kauai Absorption Rate Is Improving When I first started preparing absorption rate charts for Kauai in early 2007, there was a mix of the good, the bad, and the ugly.  In early 2008, the chart had deteriorated to mostly ugly.  Today I did another update and what a nice surprise!  The supply of unsold homes in 2 of our 5 zones has improved markedly.  Our central Lihue zone is actually back in the "OK" to "Fine" region (see referenced Business Week article for a description) and the East Side is much improved from 26.2 months to 17.8 … (4 comments)

absorption rate: Absorption Rates Explained With Chart Example - 07/05/07 06:24 PM

What is this "Absorption Rate" thing anyway and how can I make sense of the data for my clients?  Read on...
Recent blogs on absorption rate prompted me to share my own experience with this market parameter.  Absorption rate can best be thought of as the number of months it would take to sell all existing inventory based on current monthly rate of sales.  If no new listings were to come on the market, that is how many months would be required before the inventory was depleted.  I was introduced to absorption rate by a short but terrific article in … (12 comments)

 
Richard Dolbeare, Living the Hawaii Lifestyle (Inactive)

Richard Dolbeare

Living the Hawaii Lifestyle

Wailuku, HI

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Address: Hawaii Multi-Island Homes & Condos,, 145 N Kihei Road Suite A, Kihei, HI, 96753

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