If there were a more challenging year for a Realtor on Kauai than 2009 I cannot remember it. And I have been doing this for 31 years! Property values continued to move downward and the number of transactions that closed was significantly off. This coupled with a very large group of agents trying to work the same stunted areas made for a difficult year. I do not believe that the Sellers had it much better either, as most have lowered their asking prices and continue to have their property on the market.

Buyers on the other hand, the ones who moved forward with a purchase contract and bought property, were pleased. One bright spot was the continued low interest rates for borrowers who qualified. However, the rules for qualifying have also tightened up over 2009 and thus created more difficulty for those purchasers who wanted to buy a home, but who now are unable to qualify for a mortgage.

The advent and continuation of the first time homebuyer credit has been helpful for the affordable level of the Kauai market. Buyers with cash, who do not need to get a loan for their purchase, are in an enviable position right now.

Nevertheless, there were some significant sales during 2009. Tara Plantation, a 178 acre oceanfront estate finally sold for $28,000,000 after many years on the market. In addition, the Moore Estate, an 8 acre oceanfront property with an old beach house on it in the magical Limahuli area of Haena sold for $10,000,000 after a long 5 years on the market. There remain many gorgeous oceanfront and estate offerings on Kauai, some with attractive price decreases. It may sound like a broken record, but it really is a great time to buy property on Kauai.

The St. Regis (formerly Princeville) Hotel and the Koa Kea (formerly Poipu Beach) Hotel are both open for business now. The weather is beautiful and life on Kauai continues to be very fulfilling even in the midst of this economic crisis.

We look to 2010 as a year of recovery. Sales statistics are already showing signs of improvement in the number of sales. However the average purchase prices are not showing much of an increase. This is a really good time to purchase property on Kauai! Prices are not increasing yet, interest rates are still low for home mortgages and inventory is starting to clear out. As the inventory shrinks, we expect prices to stabilize and begin rising again. The most exciting thing about 2010 is our new website: www.KauaiRealE.com where you can find up to the minute listing info, sales statistics, informative blog entries, great mapping and property listings with maps showing all lot lines—for every property being offered for sale on Kauai. We wish you a happy and healthy 2010. Aloha and Mahalo, from the Agents and Staff of Sleeping Giant Sotheby’s.