According to prominent real estate market analyzer, Rismedia, vacation sales on Kaua’i have surged year to date. For example Kaua’i real estate sector ‘Residential’ is up 25.7% from the same period in 2010. Condominium sales are up 18.18%, and vacant land is up 45.45%.
This is good news for baby boomers and others wishing to invest, or live full or part-time on Kaua’i, because during this same period in 2011, median prices for residential only rose a paltry $12,000 (2.71%) while condominium median prices fell 21.80%
Why this divergence? In large part lenders are unwilling to lend if there is a single rental unit, or front desk, or time share, reflecting a very conservative ‘once burned, twice shy’ stance. Because of this, condo sellers lower prices to attract cash buyers. There are signs that some mortgage brokers are loosening up these stringent condo requirements as the economy shows signs of improvement.