Kauai Real Estate and Local News Update October 26
Real Estate Update
The National Association Of Realtors (NAR) and the Hawaii Association of Realtors (HAR) are lobbying to extend the $8,000 first time home buyers credit on into June of 2010 and the HAR wants to extend it to all home buyers, not just first time home buyers. The current tax credit has had a fantastic impact on the housing market and the nationwide numbers show it. In November of 2008 nationwide we had a 10.6 month supply of housing inventory; a healthy market is a 6 month supply. In February the $8,000 credit was introduced and we’re now at a 7.8 month supply with many of our markets stabilizing. Since the tax credit was introduced available inventory dropped every month with the exception of April. The Senate is considering the extension this week.
I have been asked to include the properties that have gone under contract for the week as well as the new listings and closed transactions. Keep in mind that the numbers for properties that went Contingent will be a little skewed because the short sales do not get reported as under contract for several months while the bank is reviewing the offer and making the final decision at the price to sell at. This last week we had 8 listings go Contingent which means an offer was accepted and the property is now in escrow. 11 pieces of property closed escrow which is in keeping with the past weeks numbers and this is good news.
For an excel spreadsheet CLICK HERE
Five Year Extension Passed For Obtaining Permits On Agricultural Land
Surprisingly, and for the sixth time since the ‘ohana zoning amendment was first passed 20 years ago, the Kaua‘i County Council this week extended the window to acquire building permits for additional dwelling units on agricultural land. Last time this was discussed the council had said there was no way they were going to extend it but the extension has been granted after the council debated the original purpose of the legislation, agreeing for the most part that “the intent of the bill has been lost.” Many members said the sixth extension — for five full years, to Dec. 15, 2014 — should be the final one and spoke out against inappropriate land use, when it came time to vote, the measure passed unanimously Wednesday morning.
“This bill is not perfect,” said Council Vice Chair Jay Furfaro, who introduced the bill, noting that it is a difficult time to secure money through loans to perform infrastructure improvements. “This is the compassionate way to close the door.” Council Chair Bill “Kaipo” Asing presented a detailed ADU history, which includes ordinances passed in March 1989, October 1991, December 1993, August 1996, November 1998, November 2006 and finally October 2009.
“Ag zoned lands should be for ag purposes, and we should keep that in mind,” Asing said, criticizing the original idea and all the subsequent extensions to it. “What have we created?” he asked, referring to transient vacation rentals and second homes along Hanalei Bay.
Furfaro said he has no intent to revisit the issue in five years and he sees the extension as an “exit strategy” to help bring county law back into compliance with the General Plan.