Of the 33 new listings this week on the island of Kauai, 8 of the properties are distressed properties. By that I mean that either they are a “short sale”, are an REO (bank-owned) or the owner has missed several payments on the property. In some cases a property may require a Distressed Property Addendum because the sellers have been unable to pay their mortgage but it may not be a short sale.
Highlights of this week’s Kauai distressed listings include a very nice home in the Molokoa III subdivision of Lihue listed at $559,900 and one my short sale listings, a fantastic Wailua Rim home listed for $659,000 (previously sold for $1,049,000 in 2005). That represents a price reduction of just about 37% on the 4 bedroom home on the Wailua Rim.
While the number of properties going into foreclosure on the island has slowed down a bit, it’s interesting to note that during the month of September the number of properties going into escrow indicate a higher percentage of interest in our distressed properties. This is compared with September’s already closed sales. See the graphs below to see what I’m talking about. Interest rates are hovering between 4.75 and 5.375 per cent and of course first time home buyers must close escrow by November 30th in order to qualify for the $8,000 tax credit.
View my private Kauai foreclosure gallery on the Hawaii Life website and by all means, take advantage of this cool feature in the newest version of Hawaiilife.com to build your own galleries so you can visit them often and visualize the property you are going to purchase on Kauai. The affordability factor continues to improve.