Lihue real estate market

The Lihue real estate market is showing increasing sales, although the overall economy of the Garden Isle remains stagnant and home prices continue to decline. According to a June 7, 2010 article in the Pacific Business News, “Single-family home sales on Kauai were up by 80 percent in May, while condo sales were up 38 percent compared to the same month last year. There were 27 homes sold on the Garden Isle last month, up from 15 in May of 2009, according to statistics from Hawaii Information Service.” The piece went on to state that “The median price for a single-family home, however, fell 30 percent in May to $420,000, down from $600,000 in May 2009. Condo sales were up last month, with 18 units sold compared to 13 units sold in May 2009. But the median price dropped 50 percent to $164,000, down from $330,000 in 2009.”

The overall economic recovery of Kauai, however, remains unimpressive, and a stronger rally will likely be necessary for encouraging the purchase of Lihue homes for sale. According to a June 8, 2010 article in Hawaii News Now, “The latest state report on tax revenues and building permits shows a decidedly slower economic recovery on neighbor islands than on Oahu.” The piece, composed by Howard Dicus, went on to state that “General excise tax revenues the single strongest indicator of consumer and business spending, fell 4.4% statewide in the first quarter despite March coming in 2.3% higher than year-before levels….Excise taxes were down 2% on Oahu, down 8% on Kauai, down 16% on Maui County, and down 18% on the Big Island, compared to the first quarter of 2009.”

Even the tourist sector, traditionally one of the largest components of the island economy and by extension an indicator of the Lihue real estate market, showed mixed signals in the most recent tracking period. According to a May 28, 2010 article in the Maui News, “Kauai, although its head count fell 1.1 percent to 75,509, saw spending rocket up by 14.4 percent to $75.8 million. That makes the Kauai math easy: Each visitor spent just about $1,000…”

Oahu Real Estate Market

The Oahu real estate market continues to face strong economic repercussions from the recession that started well over a year ago. One particularly visible example of the continued weakness in the area was reported by a March 9, 2010 article in the Maui News, which reported that “A foreclosure auction has been scheduled for 72 units of a 99-unit industrial condominium complex on Oahu. The units at the Waipio Business Center are to be sold in bulk March 24. The complex developed at a cost of an estimated $60 million was completed two years ago.” The piece noted that “The developer, WIC Partners LLC, sold 27 units in 2008 for close to $22 million. But then the market dried up with the financial crisis, and no units sold last year. Lender GE Business Financial Services Inc. filed a foreclosure lawsuit in June.”

There is some sense of hope for Oahu homes for sale, in the form of a nationwide effort to alleviate foreclosures. According to a March 26, 2010 article from KITV 4 News, “Hawaii banks and other lenders said Friday President Obama’s new initiatives to prevent foreclosures could be a great help in keeping local residents in their homes. Hawaii foreclosures are at record highs with 11,164 homes in foreclosure in the state, 5851 on Oahu, 2215 on Hawaii Island. 2141 on Maui and 957 homes on Kauai.” The article, composed by Denby Fawcett, continued to say that “Bank of Hawaii said the new features in the Obama plan should help prevent more foreclosures. ‘It will give our customers another tool they can use to help keep them in their homes.’ said Tim Padgett, Bank of Hawaii Senior Vice President for Loan Management Services.”

The resort market, which is crucial to Oahu real estate for sale, has started to improve, according to a March 25, 2010 article in the Pacific Business News. The piece continued to state that “Home sales in Hawaii’s resort market began to show a rebound in 2009, with just a 2 percent decline in sales from the previous year, according to a new report. The 2 percent decline followed a 37 percent drop in 2008 and was the smallest decline since the market began to drop in 2006, according to the residential resort market report from Data @ Work.”

Life Outside of Honolulu

The master planned community of Mililani hosts a population of 29,000 people on former plantation forms owned by Castle & Cook which began developing the area in the early 1960s.  The original vision or intention was to create Mililani Town into a satellite city in order to satisfy Oahu’s pent up demand for housing.  The first homes in Mililani were sold in 1968 and were sold quickly thanks to the interstate H2 opening and cutting the commute time into Honolulu in half.  Today, much of Mililani real estate is still in high demand.  While Mililani is still largely a bedroom community for Honolulu, the town is able to succeed on its own with commercial shopping centers, a golf course, and other suburban town amenities.

In 1986, Mililani was named an All American City, the only community in Hawaii to receive such an award.  In 2005, CNN Money Magazine ranked Mililani as one of the best places to live in the nation.  And in 2006, Mililani was named as the third wealthiest zip code by the Pacific Business News.  The still-expanding community combines suburban living with a self-sufficient and blossoming economic basis that has grown to support most of the community.