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The Poipu real estate market, one of the more tourist-oriented portions of the larger Kauai real estate market, may be starting to emerge from the economic recession. According to a May 8, 2010 article in the Garden Island, “Foreclosures are on the rise and buyers are scooping up properties across the island, recent statistics show, but the two may not be correlated, said University of Hawaii-Manoa Associate Professor of Economics Dr. Carl Bonham Friday.” The piece, written by Coco Zickos, continued to note that “The number of sales for the first quarter of 2010 was almost 70 percent higher than last year, according to Multiple Listing Service. ‘Many of the sales have been influenced by the need to compete with the multitude of short-sale offerings (homes sold for less than what is owed)…thus the sales price reflect this,’ said Kauai North Shore Properties Principal Broker Dennis Toth.”
A second article in the Garden Island reported positive news for Poipu homes for sale, which may see a rise in interest as the economy recovers. According to this May 15, 2010 article, “Slipping back into a recession is unlikely, according to a recent report from First Hawaiian Bank. Apparently the recession is over, some economists say.” The piece, also composed by Coco Zickos, went on to say that “Employment is also reflected in the visitor industry, Boonham said. ‘As long as we keep adding jobs, we’re going to’ continue to see recovery, he said. But if ‘people start worrying about their jobs again,’ they will be less inclined to travel. Since visitor arrivals rose in March on Kauai by some 8 percent and spending for the state is around 20 percent higher than it was at its lowest point, there is ‘good reason to believe we’ve past the bottom,’ Bonham said.”
One particular investor, Summit Pacific, increased its holdings of Poipu real estate in a recent auction. According to a May 12, 2010 press release, the group obtained “The Nihi Kai Villas 833 is a spacious resort at Poipu Beach, offering a brilliant view of the coastline and the mountains and located very near Brennecke Beach and Poipu Beach County Park.”
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