Elaine Schaefer (R, BIC, GRI, ABR)

Aloha,

Throughout my real estate career one of my main mantras has been "Use a local lender." They know the lay of the land, they understand our Hawaiian terminology, basically - they know what they're lending on. I've seen too many buyers go with a mainland lender who assured them they they could loan on the "Condhotel" or whatever only to have it blow up within days of closing or have the interest rate and / or points increase because the underwriter finally understood what the buyer was buying.

With the shakeup in the financial market comes a change in my recommendation to always "go local." At our last Kauai Board of Realtors meeing, American Home Savings gave a financial update, and said they were no longer lending to mainland buyers on LAND. The reason being that of the few loans they have had go into default, the majority were land and of those land loans, the majority were mainland buyers. So there you have it. Land loans now require 25% down up to $650K, 35% down up to $1M with full documentation (in other words, the stated income is history..) along with 6 months reserve of PITI (principle, interest, taxes and insurance) and minimum fico score of 680. No exceptions. THey are not the only local lender to make this decision.

This does NOT apply however, to a land purchase and construction loan where 95% financing is still available for both local and mainland buyers on conforming amounts or 90% financing for Jumbo loans. On these, a fico score of 700 is required along with 6 months of cash reserves and some other conditions. The bank feels these are less risky as the buyer is purchasing the land and moving ahead to build on it, thus making a much greater committment and investment than someone just buying raw land.

There are many excellent lenders here on Island, and I'm sure most agents can recommend several to you. When you start shopping for a property, it is the wise buyer who starts with finding a good lender and understanding what the requirement and limitations of the various loan programs are. Find a good lender you are comfortable with and can trust because the financial landscape is changing almost daily.

Happy Shopping!

Aloha Elaine

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

......you can have your own piece of paradise
ask me how!

Aloha,

Winter most definitely showed its face yesterday in the form of a huge afternoon downpour that lasted off and on into the evening. I was at the stable riding, and had just gotten off my horse when the rain started. By the time I left there, I was soaked through and through and there were small rivulets of water everywhere. Today we have high winds and gusts and intermittent rain - and whitecaps on the ocean. Believe it or not, it's still Paradise, just a different side of it. Here is your update:

Copyright 11/15/2008 by Hawaii Information Service

NEW LISTINGS
216277 T A 0 4-5-3-11-1-10 FS $985,000 Villas On The Prince #10 1,732 #10 3/3
210971 T A 1 4-5-3-6-22-10 FS $2,150,000 Kaiulani Of Princeville #10 2,864 #10 3/3.5

CONTINGENT SALES
212856 T C 142 4-5-4-5-24-42 FS $619,900 Nihilani At Princeville Resort #14C 1,874 #14C 3/2.5

UNDER CONTRACT
210620 T U 192 4-5-4-5-24-97 FS $731,500 Nihilani At Princeville Resort #33A 1,874 #33A 3/2.5

EXPIRED
213635 T X 113 4-5-4-15-21-12 FS $415,000 Sandpiper Village I #112 1,042 #112 2/2

WITHDRAWN
213550 T W 110 4-5-4-5-24-58 FS $749,000 Nihilani At Princeville Resort #20A 1,874 #20A 3/2.5

PRICE CHANGES
214620 T A 95 4-5-3-6-22-39 FS $1,750,000+ Kaiulani Of Princeville #39 2,479 #39 3/3
210522 T A 203 4-5-4-12-2-16 FS $419,000- Hale Moi #116 1,033 #116 1/2
204435 T A 346 4-5-4-12-10-41 FS $519,000- Emmalani Court #524 1,192 #524 2/2
215869 T A 64 4-5-4-5-23-16 FS $559,900- Plantation At Princeville #422 1,318 #422 3/3
216544 T A 32 4-5-4-5-30-20 FS $569,000- Princeville Mauna Kai #D302 1,488 ##25 3/2
186493 T A 750 4-5-4-5-17-55 FS $589,000- Alii Kai Ii Hanalei #14G 1,037 #14G 2/2
214607 T A 96 4-5-4-12-9-9 FS $659,000- Pali Ke Kua #13 1,135 #13 2/2
216921 T A 32 4-5-4-5-23-3 FS $685,000- Plantation At Princeville #121 1,318 #121 3/3
212433 T A 149 4-5-4-6-1-58 FS $849,000- Villas Of Kamalii #58 1,761 #58 3/3
211272 T A 183 4-5-4-5-16-35 FS $1,025,000- Alii Kai At Hanalei #4303 1,086 #4303 2/2

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

Villas on the Prince, listed at $985K and purchased from the developer in 2/02 for $474,320 was previously listed from 4/06 to 4/07, starting at $1.249M and dropping to $1.088M before it was withdrawn after 362 market days. It was also listed from 6/07 to 9/08 with a list price of $999K that reduced to $985K during the 453 days it was on the market that time. Hmmm, it didn't sell last year and half listed at $985K when the market was more active.... Ka'iulani 10 is listed for $2.150M and sold for $1,921,440 in 2/08. Those are the only two listings this week.

Nihilani 14C finally went into escrow listed at $619,900. It's a great price and has some killer upgrades throughout. This unit is a tax write off for the owner as it was purchased in 3/06 for $706,310. One of the developer's Nihilani units also went into escrow this week, which is unit 33A listed for $731,500. Rumors are swirling about how the developer is heavily discounting the remaining units. It will be interesting to see what this unit ultimately sells for.

Sandpiper 112 expired after 113 market days, which is hardly sufficient time to sell especially when priced at $415K. There's two other 2 bed / 2 bath units on the market that are significantly less; one is 132 listed for $329K and the other is 107 listed at $399K. There are even some of the larger upstairs units that are well priced, starting with 212 for $399K and 206 for $410K. Unit 112 was purchased for $335K in 6/04.

Nihilani 20A was withdrawn listed at $749K. Given that this unit was purchased for $804,075 in 9/06, it's no surprise the seller decided to take it off the market as they apparently wanted more than the market is willing to bear. (Go back and take a look at 14C at $619K and you'll see what I mean.)

We have an optimistic seller is our price change category today and that is in Ka'iulani 39 which went from $1.6M to 1.75M. This unit sold for $1,503,600 in 3/07. Hale Moi 116 followed the more typical pattern going from $429K to $419K. This unit sold for $459K in 10/04 and is also going to be a tax write off. Emmalani Court 524, purchased for 7/07 for $700K reduced from $576K to $519K. After purchasing for $700K, these sellers who are agents, put quite a bit of money and effort into upgrades which include new granite countertops, travertine flooring and stainless steel appliances. Of the 9 units for sale in this complex, this is the least expensive but nothing seems to be moving in Emmalani Court. (and many other places....)

Plantation 422, reduced from $599,900 to $559,900 and last sold for $738K in 11/05. At $559,900 this REO (bank owned property) is far and away the least expensive unit in the complex and is $150K less than the next least expensive 3 bedroom unit. Mauna Kai 25 went from $599K to $569K and last sold for $585K in 8/07. Why would someone be selling after only a year of ownership in this market? I always wonder what circumstances changed to prompt a sale as I can't image that the seller bought it with the idea of flipping. Ali'i Kai 14G,purchased for $583K in 8/05 reduced from $635K to $589. Pali Ke Kua 13 went from $679K to $659K and last sold for $121K in 8/96. Now that's equity.

We have another Plantation that reduced, unit 121 that went from $695K to $685K - not enough to make much of a difference in this market. This unit sold for $488,993 in 5/05 and has every upgrade imaginable. Villas of Kamali'i 58, purchased from the developer in 5/03 for $432,155 reduced from $879K to $849K. Ali'i Kai 4303 was purchased in 12/03 for $490K then apparently sold 55.26% interest in 1/06 for $313K to an LLC. And that's it for this week's update.

On to your Princeville Home update:

Copyright 11/15/2008 by Hawaii Information Service

NEW LISTINGS
217713 RS A 5 4-5-4-13-65 FS $1,150,000 3717 Albert Rd 12,762 sqft 2,533 3/2.5

CONTINGENT SALES
197400 RS C 514 4-5-3-11-46 FS $1,595,000 4140 Aloalii Dr 18,188 sqft 3,469 3/3

WITHDRAWN
199055 SH W 470 4-5-4-16-22 FS $375,000 4080 Kaa'humanu Pl 9,731 sqft 2,460 4/3.5
206377 RS W 297 4-5-4-10-22 FS $1,795,000 4078 Liholiho Rd 10,200 sqft 2,515 3/4

PRICE CHANGES
214882 RS A 44 4-5-3-12-33 FS $1,645,000- 3998 Aloalii Dr 9,823 sqft 3,800 4/4.5
217261 RS A 23 4-5-4-22-4 FS $650,000- 4087 Nalani Ln 11,244 sqft 1,424 3/2
216647 RS A 40 4-5-4-18-17 FS $695,000- 4725 Emmalani Dr 10,248 sqft 1,388 2/2
209601 RS A 225 4-5-4-23-55 FS $699,000- 3781 Milimakani Pl 7,187 sqft 1,295 3/2
215193 RS A 83 4-5-4-23-8 FS $725,000- 4838 Ou Pl 8,104 sqft 1,213 3/1.5
217017 RS A 30 4-5-4-20-25 FS $768,900- 5143 Iolani Pl 10,907 sqft 2,224 3/2
210765 RS A 193 4-5-4-23-24 FS $799,000- 3807 Makani Kai Pl 10,386 sqft 1,535 3/2
197400 RS C 514 4-5-3-11-46 FS $1,595,000- 4140 Aloalii Dr 18,188 sqft 3,469 3/3

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

Don't forget to call or email when you are ready for the facts of buying or selling. Whatever the property, I'll get you the inside scoop. Until next week, stay dry, which is what we'll be trying to do up here on the windy North Shore.

Aloha Elaine

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

......you can have your own piece of paradise
ask me how!

Aloha,

If you have ever enjoyed or wish you had enjoyed a carriage ride at Kilohana Plantation, your opportunity to have this experience ends on December 1st. Per the November 9th Garden Island Newspaper, "On December 1st, the horse-drawn livery service will give rides to its last few customers and then closeup shop for good. On December 27th the horses will be shipped on a Young Bros. barge to Honolulu, and from there fly nine hours on a Fed Ex plane to their new home with Doug Albrecht (the owner of Plantation Carriages at Kilohana Plantation Estate) at their side. The Albrechts and their horses will be leaving for Belleville, Texas, a small town roughly 60 miles northwest of Houston. There, Doug will act as general manager on a privately owned "pleasure ranch."

Although I've never had the pleasure of a Kilohana carriage ride, I've always admired the beautiful Clydsdales grazing peacefully in the field as I drove past Kilohana Plantation Estate. According to the general manager, there will still be horses on the Plantation. Also, if you plan to be on Island for Thanksgiving, "a free carriage ride will be offered from noon to 6 PM with the price of the Gaylord's Thanksgiving Dinner, as much as space allows," per the newspaper. You can call Gaylord's at 808 245 9593 for reservations.

I've been on this Island for 27 years - the horses have been here for 22. I'll miss seeing them...

Aloha Elaine

This is my Arabian "Bics." (Short for Bey Orobics. If you saw her trot you'd know about the Orobics part.)

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

......you can have your own piece of paradise

Aloha,

Welcome to this week's update. Once again I must say that there are MANY good buys available now and I just received news from one of my lenders that conforming loan limits will go up in 2009 from $625,500 to $713,000. Now that's something to be excited and happy about. Here is your update for this week:

Copyright 11/8/2008 by Hawaii Information Service

NEW LISTINGS
217582 T A 1 4-5-3-6-22-18 FS $2,349,000 Kaiulani Of Princeville #18 2,864 #18 3/3.5
217510 T A 5 4-5-4-11-3-95 FS $569,000 Hanalei Bay Resort #P13 867 #1105/6 1/2
217448 T A 6 4-5-4-12-11-15 FS $1,300,000 Puu Poa #201 1,359 #201 2/2

BACK ON THE MARKET
210999 T A 184 4-5-4-12-10-42 FS $574,900 Emmalani Court #525 1,456 #525 2/2

CONTINGENT SALES
212717 T C 143 4-5-4-5-24-13 FS $699,000 Nihilani At Princeville Resort #5A 1,874 #5A 3/2.5

SALES
215386 T S 37 4-5-4-6-1-16 FS $945,000 Villas Of Kamalii #16 1,761 #16 3/3
SOLD 11/6/2008 for $835,000 (CASH) DOM 37

EXPIRED
203513 T X 365 4-5-4-5-13-29 FS $589,000 Kamahana #29 1,732 #29 2/2

WITHDRAWN
207727 T W 258 4-5-4-5-3-18 FS $459,000 Princeville Paniolo #203 1,058 #203 1/2

PRICE CHANGES
214620 T A 88 4-5-3-6-22-39 FS $1,600,000- Kaiulani Of Princeville #39 2,479 #39 3/3
216706 T A 32 4-5-4-5-3-3 FS $336,500- Princeville Paniolo #103 1,058 #103 1/2
214782 T A 85 4-5-4-15-21-49 FS $399,000- Sandpiper Village I #212 1,173 #212 2/2.5
210999 T A 184 4-5-4-12-10-42 FS $574,900- Emmalani Court #525 1,456 #525 2/2
209062 T A 228 4-5-4-5-24-51 FS $695,000- Nihilani At Princeville Resort #17C 1,874 #17C 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.

Ka'iulani 18, listed for $2.349M was previously listed from 11/07 to 11/08 for $2.5M with no price reductions during the year it was on the market. It was purchased in 10/07 for $1,972,350. Hanalei Bay Resort 1105/06 last sold for $495K in 12/07 and is now listed for $569K. Pu'u Po'a 201, purchased for $350K in 10/00, and listed for $1.3M was last listed back in 8/02 to 8/04 for $325K. What a difference a few years make!

Emmalani Court 525 last sold for $400K in 1/03 and is back on the market after expiring while listed with a start price of $675K and an ending price of $574,900. It is back on the market at the lower price.

Nihilani 5A, a fabulous unit listed as a short sale for $699K finally went into escrow. It appears that it took quite awhile for the lender to finally accept the offer. This unit was purchased in 12/06 for $929,600.

Villas of Kamali'i 16 sold for $835K this past week with a list price of $945K and a purchase price of $511,365 in 8/03. This unit was beautifully painted and had an array of high end light fixtures, pendants and sconces.

Kamahana 29 expired listed at $589K with 365 market days and no reductions during that time. Giving a unit market time to see if there is a buyer for it at the given price is reasonable but after a certain point the seller must realize the price is too high and reduce accordingly if they really want to sell. It last sold in 7/05 for $478. Paniolo 203 was withdrawn from the market listed at $459K during the entire listing period - again with no reductions. This unit last sold in 7/05 for $445K.

As for price changes, first up is Ka'iulani 39 which was purchased for 3/07 in $1,503,600. It started at $1.761M and reduced to $1.6M. Paniolo 103, purchased for $410K in 4/05 seems to have reduced for the sake of appearing on the update page. When a property is listed it appears as a new listing on the daily update. From that point forward, unless there is a status change or a price change, the property can only be found by doing a search for listings. Sometimes, an agent will make a small change in price for what appears to be the goal of getting the property featured once again on the daily update page, and that seems to be the case here. I say this because the property started out at $349,895 and reduced to $348,500, then went from $348,500 to $347,450 then to $337,000 and finally this week to $336,500. Clearly $500 is not what I would call a price increase or decrease so I can only conclude that the change in price was for exposure.

Sandpiper 212, purchased for $400K in 12/04 made a much more noticeable reduction by moving from $429K to $399K. However, Emmalani Court 525, which was purchased in 1/03 for $400K, reduced from $575K to $574,900 which is yet another example of a seemingly meaningless price reduction. Last up is Nihilani 17C, purchased for $822,870 in 8/06 and reduced this week from $795K to $695K. Now, that's what a real price reduction looks like and this seller is starting to look like a serious seller. On to your Princeville home update:

Copyright 11/8/2008 by Hawaii Information Service

BACK ON THE MARKET
208360 RS A 218 4-5-4-25-4 FS $3,500,000 5174 Hanalei Plantation 16,307 sqft 4,215 2/3

CONTINGENT SALES
216862 RS C 27 4-5-4-21-14 FS $1,149,000 4882 Akai Pl 12,484 sqft 2,466 4/3

PRICE CHANGES
217261 RS A 16 4-5-4-22-4 FS $665,000- 4087 Nalani Ln 11,244 sqft 1,424 3/2
215324 RS A 74 4-5-4-9-58 FS $925,000- 5345 Honoiki Rd 10,005 sqft 2,572 3/3

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

If you see the purchase of Kauai real estate in your future, don't miss out on this opportunity to buy the property of your dreams at these favorable prices. As my good friend used to say "This too will pass..." and if real estate is your goal, don't make the mistake of thinking this market will endure forever and that you can always buy your dream property "tomorrow."

Aloha Elaine

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

......you can have your own piece of paradise
ask me how!

Aloha,

October statistics show an overall 19.30% decrease in the number of sales comparing Oct 07 to Oct 08. This Oct there were 46 sales Island wide compared to 57 in Oct 07. As a point of comparison, in Oct 03 there were 142 sales with 137 in Oct 04. Oct 05 had 162 and in 06 there were 92 sales Island wide.

Year to date shows a similar decline, going from 802 sales up to this point in time last year to only 518 sales this year. In 03 the numbers were at 1429, 04- 1421, 05-1543 and 06-1349.

Of the 46 sales this month, 23 were residential, 12 were land, 1 was a commercial property, 9 were condos and one was a business. Of the 23 residential sales, 3 were in Waimea zone, 8 in Koloa, 2 in Lihue, with 7 in the Kawaihau District and 3 in Hanalei. In case you are in Hanalei town, you will find that the one business that sold was the Hanalei Hair and Body Care which was listed for $69K and sold for $50K. This does not include the sale of the building which is leased by the business.

Sales volume is down, as you might expect. For Oct 07, the sales volume was $50M while Oct 08 saw sales volume of only $23M which is a 23% decline. In October 03 there was $63M in sales and $79M in sales in October 04. October 05 saw $96M in sales volume with $69M in 06. Year to date in 07 there had been $693M in sales compared to only $416M this year. Year to date in 03 there was $599M in sales with $793M in 04, $1B year to date in 05 and $916M in 06. Island wide in Oct 08, the money went mainly to residential, with almost $13M in sales, with $5M going towards land, just under $5M in condos and the remainder split between commercial and business.

Median sales price is also down from Oct 07 to 08 Island wide, going from $650K to $515K for residential, $500K to $363K for land, and from $565K to $520K for condos. To date, Island wide residential went from $660K to $625K, land from $610K to $520K and condos went from $560K to $547K.

Comparing this to previous years, we have houses year to date for 03 at $365K, 04 at $485K, 05 at $640K and 06 at $680K. Condos for 03 year to date median price was $280K, 04 was $375K, 05 was at $435K while 06 fell back to $395K. Keep in mind that the median sales price is nothing like the average sales price. The median is simply the midpoint price of all properties sold; that is, if you have a home that sold for $1.5M, one for $1M and one for $350K, the median sales price is $1M since that number is the midpoint of the three numbers.

If you want to see the entire October Sales Statistics, please click here to go to my website where they are posted every month.

As always, happy selling and buying and don't hesitate to ask for data when you need it.

Aloha Elaine

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

......you can have your own piece of paradise
ask me how!