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The Honolulu Advertiser
Posted on: Tuesday, December 8, 2009

Home sales surge on Big Isle, Kauai


BY Greg Wiles
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser
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Home sales jumped on both the Big Island and Kaua'i during November as real estate markets on all islands showed an increase in single-family houses compared to a year earlier.

Sales data from Hawaii Information Service also shows mixed results when it came to prices, with the Big Island's median transaction amount up slightly while Kaua'i's was off by more than a quarter.

Real estate sales climbed in all counties, as some buyers rushed to take advantage of a Dec. 1 deadline for an $8,000 tax credit for qualifying new home purchasers. The credit was heavily promoted by some real estate brokerage firms.

The tax credit is thought to have played a role in O'ahu and Maui home and condominium sales rising in November. Median home prices in both markets fell slightly.

On the Big Island, there were 113 sales of existing homes during the month, or a 66 percent gain from November 2008.

The median price, or midway between the highest and lowest prices, was $290,000. That was up 2.7 percent from 12 months earlier.

On Kaua'i there was mixed news for the market, with a 53 percent jump in transactions with 23 properties sold during the month. But the median price was down 28 percent at $442,000.

The data also show the Big Island was the only county where condominium sales didn't more than double from a year earlier.

The report found there were 24 condominium sales in Hawai'i County, or the same as a year earlier. The median price fell 8 percent to $208,000.

Kaua'i's condominium sales jumped to 15 from seven a year earlier. But the median sales price of $300,000 was down $125,000 from November 2008's median.

It remains to be seen if the transaction volume will remain above last year's levels, though the first-time homebuyer credit has been extended into next year. It allows them to claim up to $8,000 until April 30, 2010, according to the National Association of Realtors.

Moreover, the group said the stimulus measure expands the credit to grant up to $6,500 to current homeowners purchasing a new or existing home until April 30, 2010.