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 months supply. Condos continue to be troublesome across the board. The updated absorption rate chart is shown below.
Our central Lihue zone is the center of commerce for the island. For those looking to buy in that area this chart and the cost of commuting should create a sense of urgency.
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