Kauai’s current real estate trend shows a shift towards a buyer’s market in 2007. This change can be attributed to a growing inventory as property sales slow through the first half of the year.
Compared to the same time last year, the overall number of properties sold is down 52%. Vacant land and condo sales were the largest contributing factors, with sales falling 66% and 64% respectively. Residential homes sales were less effected, showing an 11% dip.
Kauai’s median sales prices paint a different picture. Year to date, median sales prices have increased 26.5%. This is an indication that Kauai real estate continues to rise in value. Generally, one would think that median sales prices would decrease as demand for property fell. However, Kauai poses a unique real estate market due to the limited amount of land available for development.
So how does this affect you, the buyer? With a large inventory of property and a limited amount of buyers, motivated sellers will need to reconsider the asking price of their property. With the help of a buyer’s agent who knows the inventory, it could be a good time to put in a lower than normal offer to see if you can maximize the return on a piece of highly valued Kauai real estate.