Kauai Real Estate Update, Oahu-Maui-Big Island Real Estate YTD Numbers, Mortgage Rates Drop

Kauai Real Estate SOLD and NEW listings Island Wide! Comments Off on Kauai Real Estate Update, Oahu-Maui-Big Island Real Estate YTD Numbers, Mortgage Rates Drop

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Price Reduced and All New Stainless Steel Appliances Installed Kiahuna Plantation #215. This top floor corner unit has great ocean views and a bonus privacy door. Click on this photo for more information and give me a call to discuss: Lynda Gill RS 808-346-0056

Kauai Real Estate
To get a complete list of everything that Sold, was Just Listed or went into Escrow for the last week on the island of Kauai click here: Kauai Real Estate Sales August 5 to 11, 2019

Poipu Beach Real Estate- For a complete list of the Fee Simple real estate activity in Poipu Beach click here: Poipu Beach Real Estate Current Market Analysis

Kiahuna Plantation Real Estate- Priced Reduced & All New Appliances Kiahuna Plantation #215!  The Sellers just put in all stainless steel appliances in this oceanview corner unit and they lowered the price to $274,500 (LH).  This unit has great rentals along with great views.  Take the video tour to see additional information and give me a call to discuss.  Kiahuna Plantation 215 Video Tour
For all the Kiahuna Plantation Real Estate activity since the first of this year click here: Kiahuna Plantation Current Market Analysis

Mortgage Rates Drop But Not Helpful To Some Homebuyers
Ongoing trade disputes with China are providing homebuyers with a silver lining.  Surprising everyone last week the 30-year fixed-rate mortgage dropped to an average of 3.60%, the lowest average since November 2016.  But you can’t take advantage of this if there is nothing to buy and this is what some price points are experiencing nationally.

On Kauai a home that is below $600K is gets pounced on and if there is a cash buyer in the mix they will often times walk away the winner. So these would-be buyers may be left out of those savings due to the limited inventory that’s plaguing numerous housing markets across the country.  Last week, the number of mortgage applications for home purchases fell by 2% on a seasonally adjusted basis.

While those buyers might be struggling this is helping consumer confidence.  Currently there is a tug of war in the financial markets between weaker business sentiment and consumer sentiment. Business sentiment is declining on negative trade and manufacturing headlines, but consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall.

Air China Suspends Service to Honolulu
As of August 27thAir China travelers will no longer be able to fly between Beijing and.  Air China’s three-times-per-week Honolulu service experienced a 66% load factor in 2018, which is significantly lower than its routes to other U.S. cities.

The airline also stated that it will refund passengers who have purchased tickets beyond Aug. 27.  The route cessation comes after Hawaiian Airlines suspended its own non-stop Honolulu-Beijing service last year.

The “Southwest Effect” Is Happening
Wikipedia’s definition of the Southwest Effect: “The Southwest Effect is the increase in airline travel originating from a community after service to and from that community is inaugurated by Southwest Airlines, or another airline that improves service or lowers cost.

Right now we’re in the fare war stage of Southwest joining the interisland market.  These low fares are a temporary situation and it’s not known how fares are going to stabilize in the long-term.  What is most likely to happen is fares will eventually come back up to a time when two carriers were serving the market, like Hawaiian and Aloha back in the early 2000s.

The cause and effect of Southwest Hawaii announcements on Hawaiian Airlines’ stock price has been prominent. Hawaiian shares dipped 10.9% on March 4th, the day Southwest put Hawaii tickets on sale, and 5.4% on July 25 the day Southwest announced it would resume Hawaii expansion plans that were slowed by the 737 Max grounding.
Hawaiian Airlines has enjoyed a stranglehold on the interisland travel market for years since Aloha Airlines and Go! ceased.  Since Southwest began interisland service, increased competition has driven down prices over 16% year-over-year through the end of July.

When is Southwest coming to Kauai?  We might get some news on August 15th, stay tuned.

Oahu, Maui and Big Island July 2019 Real Estate Year To Date
Last week we reviewed the Kauai Real Estate Year To Date report and this week we’ve got the data for Oahu, Maui and The Big Island.

The Honolulu Board of Realtors stated that the median prices for both single-family homes and condominiums on Oahu broke records in July, as the number of sales of single-family homes rose by 13%.
The median price for a single-family home was $835,000 in July, which was an increase of 5.8% from $789,500 in July of last year. The price beat the previous all-time high of $812,500 set in September last year.  The number of single-family homes sold rose 12.7% in July to 372 houses sold, from 330 sales in July of last year.
For condominiums, sales rose 2.2% to 513 units sold, from 502 units sold last year. The median price of a condo was $461,500, an increase of 7.5% from $429,500 in July 2018. It also beat the previous record of $435,000 that was set in March 2018.

Maui is a different story.  There were 84 single-family homes sold on Maui in July, which was 26.3% fewer than the 114 homes that were sold in July 2018.  The median price of a single-family home rose 3.9% to $794,500, from $764,500 in July of last year.
The median price of a Maui condominium declined 3.9%, to $493,000, from $513,163 last year. The number of sales in July, however, increased by 15.2% to 159 units sold, from 138 units sold during the same month last year.

On Hawaii the median price of a single-family home was $379,000, which was 18.44% more than the median price a year ago, which was $320,000.  That was based on sales of 217 single-family homes, which was 15.43% more than the 188 homes that sold in July 2018.
The number of condominiums sold in July totaled 63 units, an increase of 34.04% from 47 units sold during the same month last year. The median price of those condos was $325,000, an increase of 11.23% from $292,200 last year.

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