Kauai Luxury Market – Bouncing Back or Still Bouncing?

A recent Wall Street Journal article titled “Luxury Home Sales Bounce Back” highlights the San Francisco housing market at prices over $2 Million.

After a near-disastrous 2009, the luxury market appears to be making a comeback, driven by growing buyer confidence, improved financing conditions and more-realistic seller pricing. Despite the housing downturn, attractively priced homes in some of the nation’s most coveted neighborhoods are selling, sometimes fast and sometimes with multiple offers. Nationwide, sales of homes selling for $2 million to $5 million in the first quarter totaled 2,461, up 32% from a year before, says CoreLogic.

That sales are up from last year shouldn’t come as a big surprise. The shock of the financial panic in the fall of 2008 left many potential buyers too nervous to bid, and those who were willing to wade in found it hard to get financing. But a study for The Wall Street Journal by MDA DataQuick, a real-estate data provider, found that in some areas of the country, sales of homes over $2 million in the first quarter were actually on par with the levels of 2005, the peak year for existing-home sales volume nationwide.

On Kauai, however, the numbers don’t fit the national statistics quoted above.  Looking at the first quarter of 2010, there were 3 sales above $2M. In the same 3 months of 2005 there were 16 sales above $2M.

For sellers who follow national news, this type of article can create a false perspective on our local market.  It’s important to work with your local real estate expert and base pricing decisions on real market data specific to your property.

For buyers, that means now is still one of the best times ever to buy a luxury home on Kauai.  There are more choices within this limited market segment, and prices are very attractive. Now’s the time to negotiate.  For instance, this beautiful ocean view luxury home on Anini Vista was recently lowered to $9.6M – MLS 205189 / Photos:

Update:

Just days after publishing this post, the San Francisco Chronicle ran the following article;

Once again, conflicting news reports add confusion.  For Kauai luxury home owners, it’s very important that you work with detailed market analysis targeted for your property and your area.  Keep in mind that we are not yet out of this financial nightmare.  The recent increase in number of sales is primarily at the bottom-end of the market, and not a sign that the luxury home values are on the rise.  You’ll need to be realistic about your situation as well as the market.  For a complete market update, and information on your options, please contact me.

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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."
This entry was posted in Kauai market updates, Oceanfront Real Estate and tagged , . Bookmark the permalink.

3 Responses to Kauai Luxury Market – Bouncing Back or Still Bouncing?

  1. Keith says:

    The press loves to lump everything into one box, but as you say, each area has its own market and can behave quite differently to the “National Average”

  2. Property says:

    Nice article, with beautiful picture ..i just loved it..,

    Property

    ******
    oliver

  3. oswin grant says:

    I agree, there are period of housing sale that look like as if it heading up, and them it’s flat lines again. Everyone know we are exiting or fixing to exit a recession that started with the decline in housing. There are some distinct differences between luxury properties and median housing prices. However, the Almost all of our recessions have started with an downturn in the mortgage industry.

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