Now that we know who our next President will be, we wait to see what will happen with the economy. Here on Kauai, the market remains soft. Sales have slowed in the past two years, as has tourism. Last summer's increase in fuel costs spawned a significant drop in tourism throughout the islands, Hopefully, with the decline of gas prices. Tourism will begin to increase.
Overall, the decline in the economy over the past two years has resulted in a 27.75% drop in tourism through August,2008. Real estate prices have dropped by about 5%, according to the Kauai County Economic Statistics. This decline is expected to level off over the next fiscal year. **
In essence, we are looking at a fairly stationary economic future, meaning that housing prices will have to come down to attract buyers. There are, unfortunately, more short sales and foreclosures on the horizon. Keep your eyes open, the next buyer's market is at hand.
**Statistics from Kauai County 2008-09 Kauai Economic Outlook.
