Aloha Kauai Real Estate Group Ohana!
It’s JP again with your monthly update on how the market is doing for May 2016. Don’t miss the market snapshot below, there’s a ton of inventory in the Koloa market and I break it down by the numbers.
My intentions with doing these posts are to educate you on the market. The reason I started doing these was because I had a well established client telling me that he believed the properties were overpriced in Poipu. I wasn’t entirely sure so I started digging around. After looking at the numbers I believe he is correct. Which, is why you see there are so many properties sitting for a long time on the market and the original list price to sale price is a sad 85%. That is ridiculous when you consider that much of the West Coast and other islands are in a seller’s market with bidding wars. It is clearly a buyer’s market in this area. Below you will see the figures that back up my comments.
These Sold properties are located in the Koloa town and Poipu areas. More specifically Tax Map Key 4-2-6 and 4-2-8.
Here is what happened in May:
I went to the University of San Diego and studied Business Administration and took some real estate investment classes. So, I’m a numbers guy. I understand that buying a home can be an emotional purchase when it is your primary residence. You might be willing to pay more for a home that “you just love” or is “just the right fit for you or your family.” I get that. But, when it comes to resort properties that you think you might be renting out, then you have to look at the numbers. Numbers won’t lie to you. People, feelings, and emotions will.
Here’s the market snapshot: As you can see 15 properties sold in the month of May. Two of them are Single Family Homes, two are vacant lots, and 11 are Condos. There are currently 200 active listings in the same area. So that means that means if 15 homes sold every month and nothing new came on the market then we would have 13.3 months of inventory. That is a huge surplus!
Here are links to my other blogs on the market if you want to look at other areas or get more market info:
You can also see that homes that are priced closer to actual market value usually sell much quicker. So if you are thinking about selling, which I can help you with using the power and millions of extra impressions / visitors to Kauai Real Estate Group. As an added bonus I’ve included what I think is one of the best homes on the market right now on the south shore. Located on the beach… Check it out in full 3D!
I hope that you find this information useful. If you or anyone you know have any questions about the market or want buy or sell a home, than please reach out to me. I would love to educate you and help you along the way.