JJ Leininger

Have you been considering selling, but afraid that nothing is selling?

With the $8,000 tax credit scheduled to end Nov. 30, the number of home buyers looking to take advantage of the credit (as well as the historically low prices and low interest rates) could possibly increase as the year winds down, especially as we start seeing glimmers of an economic upturn for the real estate market. If you've been waiting for the right window of opportunity to put your home on the market, this might be the time. I'd be happy to answer any questions you might have. Feel free to call me or email me any time. For more information on the Tax Credit, visit http://www.federalhousingtaxcredit.com/2009/faq.php.

I have observed a strong increase in pending sales of Kauai homes in the under $500,000 price range, so this trend should continue through October 1, as Buyers will want to have their offers acceptd in time to close before the November 30, 2009 deadline for the tax credit.

Some sellers have asked me why the tax credit is not helping sell higher priced homes. One important contributing factor is that married couples with a combined income in excess of $150,000 are not eligible for the first time homebuyer tax credit. Another reason is that buyers in the over $500,000 price range are often trading up and therefore not eligible as first time homebuyers.

Aloha,

JJ Leininger, RA, ABR

Makai Properties LLC

KauaiFineHomes.com

Mortgage rates drop this week. This is a great opportunity RIGHT NOW for smart buyers and investors! Call me to find out more.

Interest on 30-year fixed mortgages, 15-year fixed loans, five-year adjustable-rate mortgages, and one-year ARMs all fell this week, according to Freddie Mac.
This is a great opportunity for buyers. With historically low prices, lowered interest rates and the $8000 tax credit stimulus, make sure you don't miss out. The tax credit stops at end of year. If you want to time this, you really should start your home search now to ensure you don't get caught in the end of year crunch where other procrastinating buyers will be competing for the best properties and values. Call me to set up a free, no-obligation consultation and I can help you strategize how best to move forward. But I recommend you move now and don't cheat yourself out of this opportunity.

Here is a breakdown of the mortgage rate developments this week:

- The average on 30-year financing slipped to 5.2 percent from 5.32 percent a week ago.
- The 15-year mortgage declined to 4.69 percent, down from 4.77 percent.
- Five-year ARMs were down to 4.82 percent from 4.88 percent.
- One-year ARMs fell to 4.82 percent from 4.94 percent.

Call me or email me to set up a consultation, or pass my information to a friend or colleague who you think might benefit from this window of opportunity.

JJ Leininger, RA

KauaiFineHomes.com

Highest Sale so far in 2009 on Kauai:

$13 million on 1/2/2009 for a North shore home on 55.43 acres.

Highest Sale in the January 1-May 26 time period in 2008 on Kauai:

$6.75 million on 1/18/2009 for 194.8 acres of raw land on the North shore.

Highest Sale in the same period of 2007 on Kauai:

$9 million on 4/9/07 for an Anina Vista home on the Kauai’s North Shore.

And finally, here is the link to the highest Sale in the same period of 2006 on Kauai:

$11,912,000 on 1/31/2006 for 473 acres of land on- you guessed it!- the North shore of Kauai.

Interesting to note that 3 out 4 of these sales closed in the month of January. Well, now I really do have to leave for my showing appointment. Thanks for reading my blog.

Aloha,

JJ Leininger, RA

KauaiFineHomes.com

You may find the attached historical sales data interesting. Some of the sales are land sales in the new Kukuiula subdivision on Kauai's south shore. In the $2 million dollar and up price range, there have been 7 closed sales on Kauai this year, plus there are 3 sales pending. This is equal to the number of sales in this time period and price range in 2004, and also in 2002.

Year, number of sales over $2,000,000 (Jan 1 through May 26):

2009, 7
2008, 18
2007, 22
2006, 24
2005, 26
2004, 7
2003, 14
2002, 7
2001. 13
2000, 6
1999, 2

I will update the blog with links to some of these listings when I have more time, but for now, I am off to show property.

Aloha,

JJ Leininger, RA

KauaiFineHomes.com

Is the Kauai real estate market turning around? I have experienced a surge in showings this month, as compared to May 2008. The lower prices are attracting more buyers, especially in the $200,000-$500,000 price range.

Just this month, I now have sales pending on two Apopo Hale homes in Kapaa, which are listed at $212,000 and $224,900. I also have a sale pending on a Hanapepe town plantation house listed at $332,000. All three of these listings are Fannie Mae owned properties. The fourth escrow opened this month was cancelled because the buyer couldn't qualify for a loan. A lot of buyers are concerned about whether or not they can qualify, and it is a simple process to find this out prior to getting your hopes up on a home that is too expensive. Kauai buyers are welcome to comment here with questions.

Land is a challeng to sell right now, because the investor/spec house builder has run for cover. Many local banks will not loan on vacant land, and those who do are requiring over 50% cash down. Sellers of homesites and raw land, who do not owe the bank, will be able to step ahead of the competition by offering owner financing to buyers.

The real estate market is very localized and I am still advising sellers with condos in the $600,000+ price range in condominium resorts which are oversaturated with listings, to leave their condos off the market if they do not need to sell right now. If they do need to sell, the condo market is still showing signs of declining prices, so it is imperative to price correctly. Price sells in this market, as there is a lot of competition for buyers.

I have been showing a lot of property and am too busy to blog during daylight hours, so good morning, and good night. It is 12:10 AM HST.

Aloha,

JJ Leininger, RA

KauaiFineHomes.com