A small-sized beachfront resort community near the southern edge of the island of Kauai, the town of Poipu is home to almost 1,500 residents. As such a small community, the Poipu real estate market is quite a small one, so demand can run quite high while supply tends to be a bit less than in other areas of Hawaii. It's no secret that many cities and town across the Hawaiian islands have seen their residential real estate sectors struggle immensely since the onset of the financial crisis sent the country into recession, from which it has yet to fully recover.
Though many things have improved some, the market remains volatile and prices seem to continue to fluctuate up and down from month to month, so it is difficult to extrapolate too many trends, particularly in a market where there may only be a handful of sales per month. The area also continues to see many struggling home owners, many of whom have faced foreclosures in Kauai.
In the month of July, the most recent for which statistics are widely available, residential real estate saw six homes sold in Koloa–of which Poipu is a part. This was a decrease year-over-year of one, as last year saw seven sales in July. So far this year, the community has seen only 12 homes change hands, down from 15 at this time last year, suggesting sales are slowing. Prices of Poipu homes for sale saw a bit of an annual decrease in July, a sign the market is still struggling. The median price fell to $437,500, from $450,000 a 2.8% decline. So far this year, the median is off by $25,000, or more than 5%.
The market for condos saw a similar summer slump, with only three condos sold in July versus five in the same period a year earlier. So far this year, however, the condo market has seen the pace for sales pick up versus last year, with 21 condos sold up to July versus just 14 in the first seven months of 2009. The sales prices of condos have continued to plunge. In July, the median price was $375,000 for sold condos, down by a full $300,000 from last year, when that figure was $675,000. So far this year, condo prices have shown steady signs of falling, with the median to date in 2010 at $443,000, down more than 26% from the same period of last year.