Kauai Real Estate Update, Halelani Unit Sold, Delta Air Lines Expands Codeshare

Kauai Real Estate SOLD and NEW listings Island Wide! Add comments

<img src=”image.gif” alt="halelaniforsale“/>

SOLD! I brought in the buyer for this 2 bedroom 2 bath Halelani unit located in Lihue. This property has low association dues and great location, truly a “no frills” property. This unit was beautifully updated and has air-conditioning. Sold Price: $346,000 (FS). Click on the photo for details and call me for information on other available units. Lynda Gill (RS) 808-346-0056

Kauai Real Estate Update 
Last week I sold Halelani CC203 for $346,000 (FS).  The Halelani’s are located in Puhi which and have very low association dues ($419.00 a month).  This unit has 807 sq ft of living space which is more than most of the Halelani units. No vacation renting is allowed in this complex and inventory is low, low, low and units in a good location move fast.  Call me for the 411 on this property.  To find out what has sold, gone into escrow and the new listings island wide for last week click here: Kauai Real Estate Update July 16 to 23, 2018

Poipu Beach Real Estate- this page has been updated and you can access it by clicking here: Poipu Beach Real Estate Current Market Analysis

Kiahuna Plantation Real Estate- Several units at the Kiahuna Plantation came on the market this last week and they are not low priced by any means.  To get this information click here: Kiahuna Plantation Real Estate Current Market Analysis

Delta Expanding Codeshare To Canadians Via Agreement With WestJet
Delta Airlines push to bolster its Canadian presence is closer to taking flight.  This is good news for Kauai as the Canadian market is really our only significant Foreign real estate investor and vacationer.  Oahu, Maui and the Big Island get pretty much all of the Japanese, China, Russia and Europe market.
Delta Air Lines signed a “definitive agreement to create a comprehensive transborder joint venture arrangement” with WestJet that will offer customers “an extensive route network within the U.S. and Canada.” The deal is still pending regulatory approvals in Canada and the U.S.
Delta said the agreement deepens the existing codeshare partnership with WestJet, the country’s second largest airline, and expands transborder service to more than 30 cities covering over 95 percent of U.S.-Canada demand.

Hawaii’s Downward Unemployment Trend Continues
Hawaii’s unemployment rate continued its downward trend in June, with the Hawaii State Department of Labor & Industrial Relations reporting the state’s seasonally adjusted unemployment rate for the month was 2.1%.
Statewide, 673,400 were employed and 14,150 unemployed in June for a total seasonally adjusted labor force of 687,550, according to the DLIR.
The department reported both initial claims and weeks claims in Hawaii decreased by 55, or 4.1 percent, and by 752, or 9.5 percent, respectively, for unemployment benefits compared to a year ago.
Over the month, both initial claims and weeks claims increased 8.2 percent and by 4 percent, respectively, in June.
Nationally, the seasonally adjusted unemployment rate was 4 percent in June, compared to 3.8 percent in May.

The Hawaii Real Estate Market
The real estate market.  There is no shortage of opinions, or interest, on where it’s going. I like what Lee Iacocca said about the market; “It will either be better, or worse, a year from now than what I think it will be.”

Recently Paul Brewbaker of TZ Economics gave his opinion.  For many years Paul was the Chief Financial Analyst for Bank of Hawaii.  His opinion is sought after and he’s expanded to have his own financial consulting company. We are in our ninth year of growth, which have been the longest expansions in modern U.S. history and with no apparent time of stopping anytime soon.
The previous peak of the market was set in 2007, when the median price on Oahu reached $643,500 after eight years of growth, more than doubling from a trough of $290,000 in 1999. Before that, the previous peak had been $360,000, set in 1994.
The current median price is more than double what it was 24 years ago. The median price of a single-family home for the first half of the year was $779,000, a 3.9% increase from $750,000 last year. The median price for all of 2017 was $755,000.

Paul Brewbaker said that adjusting for inflation, home prices have been rising a steady 2% per year, with larger variations during economic downturns such as the burst of the Japanese bubble in the early 1990s and around the Great Recession, which was technically over in June 2009.
“There’s no bubble this time – that’s unique in the experience of the last four decades,” Brewbaker said. “It properly balances.”

Whether the next downturn is around the corner or two years out, it’s likely to be a softer landing than what happened during the Great Recession 10 years ago, when prices dropped.

“The next recession, almost certainly, it’s not going to be as punishing an event as the last recession, which was the worst recession since the Great Depression,” he said.
Rising interest rates are likely to play a big role in the market cooling off but that does not mean a drop in home values.  The feeling is that when we peak we’ll go flat and that sales volume will back off but not the values.  Another factor in that is the constrained supply of homes for sale. Oahu has fewer than three months of remaining inventory.

But Brewbaker said affordability right now is actually pretty good.
“There is a crisis in the lack of housing supply, but that’s not the same thing as the average family being able to find something that is worth buying,” he said, citing debt-to-income rations. “From an affordability standpoint, in the historical context, this is not bad at all.”

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