Kakela Makai Oceanview Home Sales

How has the recent turmoil in the mortgage and real estate market affected sales and values in Kakela Makai?

Recently, it took a “Dutch Auction” to find a buyer for a very nice home in the neighborhood. A “Dutch Auction” is where the price lowers by $1,000 everyday until it sells. This is a big attention getter for real estate agents and bargain hunting buyers. But a quicker sale may have been reached by correctly pricing the home at time of listing. This is, of course, very difficult in the current downward sloping market. By conducting a “Dutch Auction” they were able to slowly find a market value price – the price which will bring them a sale!

There are also currently lots for sale as “distressed sales”. There is a lot for sale as a “Short Sale”. A short sale is where the seller owes more than they are asking for a property. The lender has to approve all offers and “workout” the situation with the mortgagor.

Another sign of the times is an REO property for sale. This is a situation where the bank has taken possession of the property and is selling it at market value rather than in a foreclosure auction. A lot that was recently on the market as an REO property is now under contract. Another indicator that correct pricing sells!

Here are some recent statistics for the neighborhood as of October 10,2008:

Number of lots currently for sale – 30
Number of lots sold to date in 2008 – 5
Number of lots currently pending sale – 3

Price range of lots currently for sale – $295,000 – $650,000
Price range of lots sold to date in 2008 – $316,000 – $515,000
Price range of lots currently pending sale – $229,000- $445,000 (list price)

Number of homes currently for sale – 11
Number of homes sold to date in 2008 – 3
Number of homes currently pending sale – 2

Price range of homes currently for sale – $895,000- $1,395,000
Price Range of homes sold to date in 2008 – $925,000 – $1,570,000
Price range of homes currently pending sale – $779,000 – $842,900 (list price)

The price range of pending sales (properties that are under contract but not yet sold) for both lots and homes is lower than both the properties currently for sale and sold in 2008. Buyers are still out there but seem to be buying the lower priced properties for now. The old adage “price sells” couldn’t be truer in this new Buyer’s market. With the downturn of the market we are even seeing some properties selling for less than what the Seller paid for it.

If you need to sell your property in this market, pricing it correctly is the most important factor. For Buyers, it is a good time to buy! Mortgage rates are still low and Sellers are finally reducing their prices.

Whether you are interested in buying or selling, or even just keeping up with the real estate market, please call or email me if I can be of assistance. Fran McDonald, RA, ABR Makai Prioperties, LLC, 808-635-0165 or FraninKauai@aol.com or check my website: www.FransKauaiRealEstate.com

December brought Kakela Makai a new benchmark for home sales prices to our neighborhood!

A home on Kakela Makai Drive sold at a price of $1.5 million! This is the highest sales price to date in the neighborhood. This is good news, as we have gradually seen a slight decline in home sales prices in the neighborhood since 2006. The three other home sales in Kakela Makai during 2007 were all under $1 million. But, with this most recent sale of $1.5 million, it brings the average selling price for 2007 to $1,072,000. There were four home sales in 2007, the same number of home sales as in 2006. However, in 2006 there were two home sales at $1,250,000, four sales overall with an average sales price of $1,072,750.

There are currently 10 homes on the market in Kakela Makai. The asking prices range from $895,000 to $1,600,000, with the average asking price being $1,161,400.

Lot sales in Kakela Makai picked up in the second half of 2007. There were 12 lot sales in 2007, 9 of which were after June 1st. The highest sales price was $500,000, the lowest was $312,000, while the average selling price was $416,258.

One can’t compare the number of lot sales in 2007 to 2006 because of the release of 89 new developer lots in Phase III in 2006. Overall there were 92 lot sales in 2006. But, if we compare the sales prices, the lowest sales price in 2006 was $250,000, the highest was $560,000, and the average was $370,891. If you compare the average lot sales price from 2006, of $370,891 to the average sales price in 2007 of $416,258, you see there has been an increase in the average lot sales price of over $45,000!

As of now, there are 32 lots for sale at Kakela Makai. They range in asking price from $335,000 to $679,000 with an average asking price of $444,793.

If you are interested in learning the current market value of your home or lot, or purchasing property in the beautiful new Kakela Makai Oceanview Subdivision, please give me call! Fran McDonald, RA, ABR, 808-635-0165

This past year has been a year of price adjustments and a “softening market”. You’ve probably heard people say that the real estate market is down or that the “bubble has burst”.

What I believe is really happening is a correction of the market. We saw unprecedented appreciation, low inventory and high demand from 2000-2005, resulting in a sky rocketing of prices. In many cases, asking prices overshot the “real market value”. This level of appreciation could not be maintained any longer and the result is a necessary correction.

Increased inventory, brought on by the previous demand, also contributes to the softening market. Buyers have more properties to choose from and it is generally taking longer to sell a property than it was a year or two ago.

However, if you look back just five years ago, you can see that even in this “depressed” market, appreciation of homes and lots in the Kakela Makai neighborhood has been considerable. In 2002, the average selling price for a lot in the neighborhood was $147,043. The average selling price over the last year is now at $408,645. In comparison, home sales have increased from $449,500 in 2002 to as high as $1,251,000 in 2006. Even though sales slowed and prices corrected in 2007 to an average sales price of $919,000 it’s still a considerable amount of appreciation.

Call or email Fran at 808-635-0165 or FraninKauai@aol.com to find out the current market value of your home or lot.

Aloha!

My name is Fran McDonald. I am a Realtor-Associate with Makai Properties, LLC in Poipu.

You may already know me as a member of the Kakela Makai Homowners Association. My husband and I are owners of Lot 34 in Phase III (at the bottom of the most western cul de sac). We currently live in the Kai Ikena neighborhood, but plan to build a new home in Kakela Makai in the near future. We have lived in Kalaheo for over five years now and love it! I would like to tell you a little about my qualifications as your Kakela Makai Neighborhood Real Estate Specialist.

Over the past two years I have sold over $9 million in real estate, much of which has been in the Kakela Makai neighborhood or the surrounding Kalaheo and Lawai area. Since Kakela Makai is my neighborhood also, I keep up on what is happening very closely.

My brokerage company, Makai Properties, LLC is the leader in real estate sales on the south shore, selling more real estate in our area than all other real estate companies combined! This means you get not only my expertise in the Kakela Makai area, but the expertise of my Brokers and the entire office of top agents as a team to help you sell your home!

I am a member of the Kauai Board of Realtors and a member of the multiple listing service. This means we cooperate with other brokerages in sales. We share our listing information and invite all MLS member Realtors to bring their Buyers to our listings. In return I have access to information on any property listed on the MLS and can show and sell not just Makai Properties’ listings, but any property listed with any other Brokerage on the island.

I have earned the designation of ABR, Accredited Buyer Representative by the NAR, National Association of REALTORS ® and REBAC, the Real Estate BUYER”S AGENT Council, Inc.

I look forward to representing you in your next real estate transaction!