While real estate sales remain slow in comparison to previous years, we are noticing a steady increase in overall sales over the course of the year.

The following graph shows news escrows by week for the 37 weeks through October 25, 2009. As the graph indicates, while we have experienced the normal spikes due to the holiday and seasonal increase in visitors, the average upward trend is fairly steady.

Many things can be read into the data below. One can surmise that this trend in buying reflects the increase in short sales and foreclosure properties and the lowering of property values. Obviously, the more foreclosures and short sales there are, the lower the property values fall.

The bottom line is that home prices are coming down slowly and you can find some attractive deals on the island of Kauai!

Aloha!

As a relatively new CDPE designate, I look upon this economic situation as an opportunity. It's not all about making money. We certainly won't get rich on short sales. Rather, this is an opportunity to help people, homeowners, get out of a bad situation.

Most homeowners facing foreclosure never anticipated this outcome. They bought a home thinking they have finally reached a part of the American Dream, only to find out that when the ARM expired, they were in "lender hell."

As realtors, we are in a unique position to assist people in this "lender hell" to see the light at the end of the tunnel and the hope that they can somehow, come out on the other side with minimal damage to their lives. At this point, for realtors, it is no longer about just making a living, it's about making a difference.

I, for one, am proud to be a part of the solution.

-Nance Overton, RA, CDPE

Aloha,

I am pleased to announce that I have recently completed the exhaustive training for and received the prestigious Certified Distressed Property Expert (CDPE) designation. This designation is my opportunity to better serve Kauai homeowners facing foreclosure. Being among the initial group of real estate professionals attending the first class to be held in Hawaii, I am one of the few currently positioned at the forefront in the solution to the foreclosure crisis in Hawaii.

My understanding of the foreclosure and short sale processes are strenghtened. I have the knowledge and tools to assist homeowners in their darkest hour: when they are faced with losing their home to foreclosure. My commitment to serving the people of Kauai in their real estate needs has been increased to an all new level.

So many homeowners here in Hawaii have no idea that there are other options open to them. They start missing mortgage payments, they hunker down and wait for the foreclosure notice, then they just give up and let their home go to the highest bidder. If I hear from a homeowner soon enough, we can try to avoid the foreclosure and save them the embarrassment of future credit and tax ramifications that many people aren't even aware of.

My Broker, colleague, and I are proud provide the community on Kauai with free seminars to discuss the options available that can help them avoid foreclosure. If you live on Kauai or own a property in Hawaii, please feel free to come to the seminars or call me for assistance.

It's all in your perspective. If you are the seller and you are selling at or below the price you bought it for, it's most certainly a fire sale! However, I'm inundated with buyers that think they can get a property that was assessed at over a million dollars last year for a couple of hundred thousand! Not happening here, not yet.

Don't get me wrong. I am fully aware that housing prices are plummeting on the mainland. But let me tell you that I live on an island - the Garden Island, to be exact - in Hawaii. Most of these islands are 5-star vacation destinations. So, when I get an inquiry from someone looking for a 2 bedroom/2 bath condo on the beach in Poipu for $60K (yes, sixty), I have to shake my head.

And then it happened - well, almost. Two condos (neither 2b/2b OR on the beach in Poipu, mind you) came on the market for $59,000 (yes, fifty-nine) a few days ago. Now, these condos are assessed at over $200K and they are not distressed properties, so one has to wonder what these sellers are thinking? The easy answer - since these are not my listings - is the sellers are very motivated and just want to dump the properties. Someone savvy buyer will make a killing, I'm sure.

The other aspect though, is these prices will undoubtedly cause all the others (right now there are about 31 listings in this complex alone) to start falling. In addition, those who cannot afford to cover the reminder of their loans will be hard-pressed to convince a buyer why they should pay $200K more than the ones that are listed at 59K. Even after they are sold, they will skew the numbers for a long time to come. This could also prompt other sellers around the island to start selling for as low as they can go...whatever that might be. Now, this is not necessarily a bad thing. It may actually get the ball rolling again - which would be a good thing. We all know that a stagnant housing market is no good for anyone. And investing is a tricky business at best. But, with prices starting to fall (if that's what happens) investors and homeowners alike will come back and start buying again.

So, I guess I must ask the question: is the fire sale starting??

(Since I wrote this -- one of the two listings has gone under contract. Cash deal, no doubt! Kudos to the agents involved!!)

The graph below indicates the median prices for the following categories:

• Princeville Area Condos
• Poipu Area Condos
• All Kauai Condos

You can easily see the rapid rise in the cost of a condo on Kauai since 1999. Price levels of 10 years ago are not likely to be seen again anytime soon. You can also easily notice that prices have remained fairly stable over the last year or two, depending on the area. One reason for this is that sellers who bought high are not willing or able to sell for a loss. For some, the tax liability is too high and it makes more sense to hold out for a price that covers their loans and closing costs. So, while we wait to see how the stimulus package and the homeowner packages roll out, prices on Kauai are at an impasse.