Princeville condo update for the week of September 9th to 15th

Something happened this week that I have not seen for a long, long time….in fact, I can’t remember the last time I saw this — and that is– there were no new Princeville Condo listings this week! I had to check twice to make sure I didn’t have some unknown search parameter set up when I pulled up this week’s update, thinking perhaps I had somehow skewed the search, but that was not the case. In addition to no new listings, we also had two more Pali Ke Kua units go under contract. These units are just flying off the shelves since unit 105 dropped $200K and quickly went into escrow selling for $795K on 8/31/07. Take a look at last week’s activity:

Copyright 9/16/2007 by Hawaii Information Service

NEW LISTINGS

BACK ON THE MARKET

CONTINGENT SALES

198742 T C 55 4-5-4-12-9-25 FS $799,000 Pali Ke Kua Iii #235 1,135 #235 2/2.0
197296 T C 90 4-5-4-12-8-5 FS $825,000 Pali Ke Kua Ii #119 763 #119 1/1.0

SALES

195591 T S 84 4-5-4-5-27-20 FS $425,000 Hale Honu #10B 1,085 #10B 3/1.5
SOLD 9/14/2007 for $365,000 (CNV) DOM 84

185461 T S 290 4-5-4-5-39-96 FS $639,000 Cliffs At Princeville #4202 917 #4202 1/2.0
SOLD 9/12/2007 for $590,000 (CNV) DOM 290

UNDER CONTRACT

EXPIRED

188004 T X 253 4-5-4-5-23-54 FS $625,000 Plantation At Princeville #1412 1,153 #1412 2/2.0

WITHDRAWN

187267 T W 287 4-5-4-11-3-54 FS $1,195,000 Hanalei Bay Resort #J22 1,324 #Apt.#7203-4 2/2.0
162124 T W 743 4-5-4-12-11-37 FS $2,195,000 Puu Poa #309 1,352 #309 2/2.0

PRICE CHANGES

184077 T A 348 4-5-3-11-1-36 FS $899,000- Villas On The Prince #36 1,760 #36 3/3.0
189454 T A 236 4-5-4-5-3-24 FS $459,000- Princeville Paniolo #211 1,058 #211 1/2.0
200223 T A 24 4-5-4-5-24-40 FS $809,000- Nihilani At Princeville Resort #14A 1,874 #14A 3/2.5

This information has been supplied by third parties and has not been independently verified by Hawaii Information Service and is, therefore, not guaranteed.

Pali Ke Kua 235 went into escrow in a mere 55 days. This seller has plenty of equity in this unit, having purchased for $415K back in 2003 and priced his unit to sell. Pali Ke Kua 119 started out at $950K back on 6/10/07 but dropped to $825K on 8/20/07. This is another one with good equity, having been purchased in 2001 for $420K.

It always amazes me how some complexes will sit idle for so long, with listings piling up, then suddenly eveyone wants a unit in that complex. Nothing has moved in PKK since 5/12/06 when unit 146 sold for the full asking price of $950K after only 139 days on the market. So basically for almost a year and a half nothing has moved. Once 105 broke through with the $795K sale, everyone else seems to have jumped on the bandwagon to get one of the ever popular PKK units. Now we have three in escrow and a total of 8 listings, half of which are leasehold. Leasehold listings always take longer to sell mainly because most people either don’t quite understand them or cannot afford the cost of the condo along with the maintenance fees AND leasehold fees, which are substantial in this complex– over $700 a month.

Here are the PKK units on the market and in escrow: (the last 3 followed by a “c” are the ones in escrow)

Copyright 9/16/2007 by Hawaii Information Service

MLS DATA

174822 T A 472 4-5-4-12-9-28 LH $350,000 Pali Ke Kua Iii #238 993 #238 1/1.5
200136 T A 26 4-5-4-12-9-26 LH $530,000 Pali Ke Kua Iii #236 1,135 #236 2/2.0
197847 T A 79 4-5-4-12-8-24 LH $649,000 Pali Ke Kua Ii #130 1,100 #130 2/1.5
192740 T A 188 4-5-4-12-5-28 LH $695,000 Pali Ke Kua Incr I, ii, iii #210C 1,127 #210C 2/2.0
196893 T A 101 4-5-4-12-9-30 FS $899,000 Pali Ke Kua Iii #242 1,135 #242 2/2.0
173096 T A 546 4-5-4-12-9-24 FS $995,000 Pali Ke Kua Iii #234 1,135 #234 2/2.0
196871 T A 89 4-5-4-12-8-20 FS $1,100,000 Pali Ke Kua Ii #227 993 #227 2/2.0
194640 T A 129 4-5-4-12-9-27 FS $1,100,000 Pali Ke Kua Iii #237 1,135 #237 2/2.0
198742 T C 55 4-5-4-12-9-25 FS $799,000 Pali Ke Kua Iii #235 1,135 #235 2/2.0
197296 T C 90 4-5-4-12-8-5 FS $825,000 Pali Ke Kua Ii #119 763 #119 1/1.0
199483 T C 165 4-5-4-12-9-15 FS $825,000 Pali Ke Kua Iii #136 1,135 #136 2/2.0

This information has been supplied by third parties and has not been independently verified by Hawaii Information Service and is, therefore, not guaranteed.

The price point that seems to move these units is somewhere around $825K and under. As you can see, those that are higher continue to garner market time with unit 234 accruing 549 days on the market. This unit came on the market on 3/19/06 at $995K and has not moved from that price. Even more interesting is the pricing in the leasehold units which start at $350K and go up to $695K. Sometimes location within a complex can account for vast pricing disparity, ie oceanview vrs garden or mountain view but in this case, all these unit have some ocean to one degree or another.

Moving on, along with my Hale Honu 10B listing closing, we also had Cliffs 4202. This unit started at $690K in 10/06, dropping to $639K on 1/30/07 finally closing at $590K. This owner, like the Hale Honu seller, had ample equity. This sale price is higher than that of Cliffs unit 7202 which recently closed for $575. While I personally think the views from building 7 are better, building 4 is more private and out of the way, which may be what contributed to the higher price.

Regardless of the reason, the important thing to note is the uptick in price. Many buyers seem to think prices will just keep going down, saying they don’t plan to buy until the market has “hit bottom.” What they fail to consider is that each seller is an individual with personal reasons for selling and different financial abilitity to reduce price. Some simply cannot absorb a loss while others, with substantial equity, most likely have a minimal mortgage and can simply wait out the market. Just because one unit sells low does not mean the next one will be lower. The low price that just recorded with this weeks sales may have been the “bottom” within that complex. In other words, unit 7202 at $575K may have been it, and you, the buyer, just missed it! Buyers should never forget because sellers know all too well, that Kauai, unlike the mainland, is a niche market that will always be desired. What’s important in this case is that the buyer of 4202 got the unit they wanted, at the price they were willing to pay. Now THAT’S the bottom line! There is still one unit available in building 4 listed at $620K making it the least expensive Cliffs ocean view on the market at this time.

As always, we have the reductions as determined sellers try to find the price point that will bring a buyer. We’ll just have to wait until next week to see if the reductions are successful. If you have any questions about any of these units or would like more information on a unit you are thinking of buying or selling, please call or email.

I went on a wonderful hike this weekend in Kapaa which I hope to tell you about in an upcoming blog!

Aloha,

Elaine Schaefer (R, GRI, ABR)
Broker in Charge – Princeville Resort Office
Graduate, Realtor’s Institute
Accredited Buyer’s Representative
Top Producer 100% Club

RE/MAX Kauai
Princeville Resort Office
POB 223632
Princeville, HI 96722
cell: 808 639 2935
home fax: 1 808 440 4552
email:soldonkauai@yahoo.com
website: www.kauairealestatenow.com
blog: www.blogs.alohaliving.com/princeville-condo-sales

September 16th, 2007