Groundhog Day on Kauai – Spring Buying Season?

Yesterday was Groundhog Day. As the rest of the country counts days until Spring, on Kauai we only experience a slight shift of 3-5 degrees with a little more rain, wetter and a bit cooler… nothing newsworthy.

But we’ve historically felt seasonal changes in the Kauai real estate market.  When Punxsutawney Phil poked his head up on the beach, did he see buyers? 

Kauai real estate’s buying season used to begin mid-March and go through end of summer.  In recent years, that hasn’t been as evident due to the national financial crisis.  Buying activity on Kauai has been following the economic “mood” of the country.

On the islands, we have our own real estate “Punxsutawney Phil“… Dr. Paul Brewbaker of TZ Economics, a leading economist for the State of Hawaii.  Our yearly Groundhog Day for Kauai Real Estate is at the annual meeting of the Kauai Board of Realtors.  Each year, Paul gives a humorous, detailed and insightful analysis of the current economic market for Kauai and the other islands. 

This past August he spoke to the fact that “double dip recession” was basically a ‘sound byte’ and the signs of recovery he predicted in previous years were on their way. For more information and some “flash-backs” to last year’s market;

As you can see from this recent Trulia.com analysis of Princeville real estate, our market is following Dr. Brewbaker’s predictions – inventory is reducing and prices are nudging upwards:

When’s the right time to buy?  Of course, many personal factors come into play – it has to be the right time for you.  But as activity increases, it’s more competitive. 

If it works for you financially, now seems to be the ideal time to negotiate. Once the ‘sound bytes’ determine it’s a time to buy – then you’ve missed the opportunity to take advantage of the “down market” and low interest rates. 

Buying when values are down -against the grain of activity – isn’t for everyone.  But hey, it worked for Warren Buffett, who has said;

  • “Buy when others are selling, and sell when others are buying.”
  • “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
  • “Americans are in a cycle of fear which leads to people not wanting to spend and not wanting to make investments, and that leads to more fear. We’ll break out of it. It takes time.”
  • “I am a huge bull on this country. We will not have a double-dip recession at all. I see our businesses coming back almost across the board.”

What’s your opinion – are we coming into a buying season?

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About Susanna "Susie" Kunkel, RA

With a belief that life is too short to not follow your dreams, Susie and her daughter became new Kauai residents in less than 4 months after visiting for the first time in 2000. She brings a wealth of information from her background in administrative, contract and paralegal work in a variety of industries including technology, investment banking, biotech and estate planning. As a Realtor, Susies's tenacious and technical approach have earned her a large group of extremely loyal clients. Susanna is a steadfast believer in "The Golden Rule", and applies it to her approach as a Realtor. "Each client and each property are unique, so it's important to me to listen intently to what my clients' goals are, and to make sure I go above and beyond to help meet them."
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3 Responses to Groundhog Day on Kauai – Spring Buying Season?

  1. Nancy Myers says:

    Save One Homeowner at a Time! Help to Break the Foreclosure Cycle.

    When a bank forecloses and kicks a family out, it not only is devastating to them, it hurts the whole country. We will buy a defaulting note & make a deal

    More info on saving a homeowner in foreclosure:

    http://www.indiegogo.com/Save-One-Homeowner-at-a-Time-Help-to-Break-the-Foreclousure-Cycle

  2. Hindu Blog says:

    I think it’s seems to be historically felt seasonal changes in the Kauai real estate market. And they give detailed and insightful analysis of the current economic market for Kauai and the other islands.

    ——————-
    Soman

  3. Its a nice post. Thanks for sharing with us. I enjoyed it.

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