A Daily Shot of News

Although the real estate market is suffering throughout Hawaii, Kauai has experienced the most significant decline in its real estate market.  Kauai real estate has been down since the beginning of the 2008 recession, and even though many real estate experts are optimistic about the future of the real estate on Kauai, many believe that there are still a few more months of declines in real estate rates before the real estate in Kauai and the rest of Hawaii can begin to make a full recovery.  Nevertheless, there are many obstacles that are slowing the recovery of the Kauai real estate market including sharp declines in tourism, which is the economic base of Hawaii, as well as the financial strains many Hawaii residents are experiencing.

According to the Honolulu Star Bulletin, the island of Kauai has the highest foreclosure rate in the state as of the month of August.  All of the neighbor islands have struggled with higher unemployment rates and greater real estate declines than Oahu.  Only 35 percent of foreclosures in the state of Hawaii are in Oahu, even though 99 percent of the population of the state is on Oahu.  Kauai’s foreclosure rates are still increasing dramatically, with the number of foreclosed homes increasing from 71 to 212 between the months of July and August.  Many of the homes being foreclosed on in Kauai are due to subprime loans made to home buyers.

However, Pacific Business News reports that real estate in Kauai and the rest of Hawaii is beginning to decline more slowly, meaning that the Kauai real estate may have hit bottom and will begin to recover in the coming months.  Experts still believe that the real estate market must decline a little bit more before a full recovery is possible.  They also speculate that the Kauai real estate market will slow to a full stop, with significant recovery not beginning until several months into 2010.  With Hawaii’s tourism industry beginning to decline less rapidly, the economy of Hawaii as a whole is beginning to show signs that the end of these economic woes are near.