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The Honolulu Advertiser
Posted on: Saturday, June 6, 2009

Big Isle, Kauai home prices drop


By Andrew Gomes
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

This three bedroom, two-bath home in the Hawaiian Shores Recreational subdivision south of Hilo is on the market for $349,000, slightly more than the median price for houses on the Big Island last month.

www.clarkhawaii.com

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Weakness persisted in the housing market on the Big Island and Kaua'i last month, as the number of sales and median prices fell.

According to Hawai'i Information Service data, the biggest hit occurred in Kaua'i's condominium market, where sales fell 32 percent to 13 in May from 19 in the same month last year. The median price dropped 46 percent to $330,000 from $610,000.

The change in median prices was about evenly spread across different parts of the Garden Island — declining 50 percent in Hanalei to $440,000 on seven sales, declining 41 percent in Lihu'e to $180,000 on one sale and declining 40 percent in Koloa to $320,000 on three sales.

Kaua'i condos, however, represent the smallest of the Neighbor Island real estate market segments, making it the most susceptible to big swings in the median price.

Because the median is a point at which half the sales are for more and half for less, it can be swayed by changes such as more sales of older and smaller homes or fewer sales of newer and bigger homes.

Still, economists agree that job layoffs, furloughs and pay cuts being doled out in the weak local economy are contributing to a drag on home values as buyer demand remains weak and foreclosures continue to rise.

The number of single-family homes on Kaua'i sold last month was 15, down 29 percent from 21 sales a year earlier. The median price dropped 15 percent to $600,000 from $705,000 in the same period.

On the Big Island, there were 100 single-family homes sold in May, down 7 percent from 107 a year earlier. The median price was down 27 percent to $303,000 from $415,000.

Big Island condo sales were down 21 percent to 31 units last month from 39 a year earlier. They sold for a median $309,000, which was down 31 percent from $450,000.

Big Island condo prices ranged from a median $69,999 in South Hilo where there were five sales, to $400,000 in South Kohala where there were 11 sales. Big Island single-family home prices ranged from a median $140,000 in Ka'u on five sales, to $488,000 in South Kohala on 10 sales.

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