July 30, 2010

Makena real estate housing market

The Makena housing market, along with the rest of the Maui real estate market, began to show signs of improvement after several consecutive months of severe losses and declines. According to a July 8, 2010 report from the Lahaina News, “While median prices may have slipped slightly, the report indicated that average prices for both homes and condominiums are following upward trends, with condo sales in particular steadily increasing, although median prices have declined. And while the total number of sales in Maui County may fall into the less-than-desirable range for sellers and their agents, it is still up nearly 72 percent compared to sales in May of 2009—certainly an encouraging sign. Residential sales in the first five months of the year “held strong,” with 81 homes sold and 104 condo units sold. May’s median sale prices were $442,000 for homes, $412,500 for condos and $547,500 for vacant lots of land, according to the report. Best of all, and perhaps most appealing to potential homebuyers, the report said, “Interest rates are remaining near historic record lows, which may help motivate would-be buyers to go ahead and buy.” The RAM report also noted that, as of May 2010, land sales had risen to 16 lots. This is not only welcome news to sellers and buyers, but also to land developers, architects, contractors and construction workers, who have also felt the pinch of the vulnerable housing market.”

The report by Sarah Ruppenthal went on to note that brokers are pursuing creative avenues to sell Makena homes for sale. It stated that “Despite the odds stacked against them, many developers have found creative ways to jumpstart Maui’s weakened housing and construction industries. For instance, Pe‘ahi Farms, which sits atop 130-foot cliffs along the picturesque North Shore coastline, has 15 vacant farm estate lots for sale. Last week, Pe‘ahi Farms’ project owners announced a sales incentive plan extended to potential homebuilders throughout 2010. The plan, which is designed “to get the real estate market ball rolling,” offers a significant price reduction that will allow up to six homeowners a substantial lot discount if they are prepared to start the building process. The SMA process is complete for the entire project; therefore, project owners said, the lots are ready-to-build.”

July 28, 2010

Lahaina housing real estate market

The Lahaina real estate market, a major component of the larger Maui housing market, is showing signs of a possible recovery despite a slower than expected rate of recovery nationwide. A July 13, 2010 report from Hawaii News Now noted that “Buyers closed on 77 home sales and 105 condo sales in June, amid some indications of a modest pricing rebound. The median home price, $499,000, was $57,000 more than May and $4,000 higher even than year-ago prices. There were 25 home sales on the central plain, 10 in Kihei, seven in Pukalani, seven in Lahaina, and the rest scattered around Maui. (Neither Molokai nor Lanai saw any home sales go to closing in June.) The condo median was $430,000, up $20,000 from May but still $39,000 below year-ago levels. There was a wide variety of condo prices, with 25 condos selling on the Kaanapali Coast, most for more than $800,000, while 34 sold in Kihei, most for less than $300,000. “The market is starting to turn,” said Terry Tolman, chief staff executive for the Realtors Association of Maui, in a report to members. “Interest rates are remaining near historic lows.” Tolman sees the market as strong considering that short sales and bank sales are still moving through the pipeline – these can bring prices down – but warns that unrealistic sellers who price their properties too high are being ignored by prospective buyers. This wraps up the June round of home sales reports. Earlier reports from the Honolulu Board of Realtors and Hawaii Information Service (Kauai and the Big Island) also showed a resurgent housing market with more resilient home price values than on the mainland.”

The relative strength of Maui homes for sale is indicative of a larger trend in the Hawaii housing market. Along with the rest of the Valley Island and the Aloha State, the Lahaina real estate market remained stronger than the rest of the country, despite relatively high rates of foreclosure. It is unclear, however, exactly how much of the strength of the recovery is a result of the recently expired federal homebuyers tax credit.

July 26, 2010

Kailua real estate housing market

The Kailua housing market, part of the larger Oahu real estate market, rallied in the most recent tracking period despite possible indications that the market is slowing. According to a July 7, 2010 report from Hawaii News Now, “The first of the home sales reports from June show sellers are getting more of what they ask for and waiting fewer days to find a buyer. Realtors closed on 285 home sales on Oahu in June, for a median price of $575,000, compared to 263 closings a year ago for a median price of $570,000… There were 396 condo closings for a median $300,000, compared to 287 sales for a median price of $310,000 a year ago. The median is the point at which half the sales are for less and half for more. The median prices gives a sense of the market that the average price can fail to give if one or two really expensive or really cheap sales skew the numbers…Factors driving the market include expiration of federal home credit, which is thought to have taken some drive out of the market, and the lowest mortgage rates in half a century, the effect of which has been restricted, real estate agents say, by tight credit at local banks.”

The average purchase price of a Kailua home for sale barely increased in the month of June, suggesting that the market may be slowing. According to a July 7, 2010 report from the Honolulu Star Advertiser, “The median price for previously owned single-family homes sold on Oahu last month eked out a 0.9 percent gain to $575,000 from $570,000 in the same month last year, according to figures released today by the Honolulu Board of Realtors. The slight rise came on sales volume that was up 8.4 percent to 285 transactions from 263 in the same period. Condominium sales soared 38 percent to 396 in June from 287 a year earlier, but the median price was down 3.2 percent to $300,000 from $310,000.” There is also the possibility that both home sales and the median sales price may have been artificially altered by the federal tax credit that recently expired.

July 25, 2010

Hanalei housing real estate market

The Hanalei real estate market, part of the larger Kauai housing market and Hawaii real estate market, continued to face serious issues with foreclosures and low prices despite an uptick in sales figures. According to a July 15, 2010 report from the Honolulu Star Advertiser, “Foreclosure proceedings against Hawaii properties continued to rise in June from the same month last year, according to the latest industry report. There were 1,000 properties statewide in some stage of foreclosure last month, up 42 percent from a year earlier, according to data from real estate research firm RealtyTrac. Despite the increase, the volume was the second-lowest for any month this year after 972 filings in February, and was the second-lowest rate of increase on a year-over-year basis after a 29 percent rise in May…Compared with other states, Hawaii foreclosure rate of one filing per 513 households was 15th worst, meaning 35 other states had lower rates, according to California-based RealtyTrac. The national rate was one filing for every 411 households. Nationally, the total number of foreclosure filings declined 7 percent from June 2009. Nevada had the worst rate at one filing per 88 households, and Vermont had the best rate at one filing per 26,051 households. By county in Hawaii, Honolulu had the most filings at 342, but it had the lowest rate, at one filing for every 986 households. Kauai had the next-lowest rate at one filing per 505 households, based on 59 total filings.”

The median purchase price of a Hanalei home for sale declined in the month of June, even as the rate of condo and home sales increased significantly. According to a July 9, 2010 report from Pacific Business News, “Kauai home and condominium sales saw big year-over-year increases in June as median prices fell. The 37 single-family homes sold last month were 76 percent more than the 21 sold a year ago. Condo sales rose 62.5 percent, from 16 last year to 26 this year. But the median sales price for single-family homes dipped slightly, from $410,000 in 2009 to $405,000 this year. Median condo prices fell even more, down 10.4 percent from $385,000 to $345,000.”

July 22, 2010

Kaneohe housing real estate market

The Kaneohe real estate market, along with the rest of the larger Oahu housing market, continued to edge upwards in the month of June despite signs that the recovery may be slowing. According to a July 7, 2010 report from Pacific Business News, “The number of Oahu home and condominium sales increased in June when compared to the same month last year, but median prices for condos were down in June. The number of single-family homes sold on Oahu was up 8.4 percent in June, from 263 to 285, according to figures released Wednesday by the Honolulu Board of Realtors. The median price for those single-family homes sold last month was up 0.9 percent to $575,000 from $570,000 compared to the same month last year, according to HBR data. Condominium sales saw the most dramatic increase — up 38 percent to 396 compared to the same month last year. But the median price was 3.2 percent lower than a year ago, settling at $300,000. “The June statistics show that Honolulu real estate market continues to recover,” said Brian Benton, president of the Honolulu Board of Realtors. “Median prices for both single-family homes and condominiums are higher than this time last year, and pending sales for single-family homes are also up and should be reflected in the sales numbers over the next couple of months.” Sales in June also closed faster this year than they did last year, with single-family homes listing for 32 days, down from 48, and condominiums listing for 31 days, down from 47.”

However, despite the positive trend in the number of sales, the median price of a Kaneohe home for sale barely increased from 2009 to 2010. The average sales price increased by less than one percent between June 2009 and June 2010. The number edged up from about $570,000 to $575,000 according to statistics gathered from the Honolulu Board of Realtors. Condominiums actually saw a decrease in median price, dropping from $310,000 to $300,000, or about 3.2 percent. Sales volume for condominiums increased from 287 last year to 396, outpacing single-family homes, which saw an increase of about ten percent.

July 20, 2010

Honolulu housing real estate market

The Honolulu real estate market, the primary sector of the Hawaii housing market, showed continued but possibly slowing signs of growth in the most recent tracking period. According to a July 8, 2010 report from the Honolulu Star Advertiser, “A recovery for Oahu home prices still looks hesitant six months into the year, as the median sale price for previously owned homes in June rose not quite 1 percent. Single-family homes sold for a median $575,000 last month, up 0.9 percent from $570,000 in the same month last year, according to data from the Honolulu Board of Realtors. The slight gain followed a 12 percent jump in May, which in turn was preceded by a 6 percent dip in April. For the first half of the year, the median sale price for Oahu homes is up 2.6 percent to $585,000 based on about 1,500 sales. The number of sales is up 32.5 percent year to date, but was up only 8.4 percent in June at 285 sales compared with 263 in the same month last year. Even if they are mostly small and somewhat inconsistent, transaction and price gains to date reinforce that the single-family home market is still on pace to reverse two years of price declines.”

A July 8, 2010 report from the Associated Press maintained a slightly more positive tone and did not mention a slowing pace of recovery regarding the figures available for June. It stated that “Honolulu Board of Realtors President Brian Benton says the latest sales figures for existing housing show Oahu real estate market continues to recover. The board reported Wednesday that June saw 285 single-family homes trade hands, an 8.4 percent boost over June 2009. It says the 396 condominiums sold last month represented a 38 percent jump. The median price paid for homes last month was $575,000, compared with $570,000 in June of last year. At the same time, the median price for condos dropped 3.2 percent to $300,000. The board also reports sales closed faster in June with single-family homes listing for 32 days, down from 48 days, and condominiums down to 31 days from 47.”

July 18, 2010

Kihei real estate market

Despite a trend of recovery and gradual growth, the Kihei real estate market, a component of the larger Maui housing market, continued to face some challenges, such as a new proposed property tax increase. According to a June 2, 2010 article from the Maui News, “Condominium owners turned out Tuesday to oppose legislation that would push thousands of units into a higher property tax classification, saying it would be an unfair burden and could drive more condominium units into foreclosure. While there are 26,701 condos in Maui County, 3,565 of those would be affected by the tax change, according to property tax officials. But that fraction would be hit hard – condo owners affected by the law change would have paid a cumulative $9.1 million in additional property taxes if the legislation had gone into effect this year. “That’s a lot of money to come out of one class of property owners,” said Dave DeLeon, government affairs director of the Realtors Association of Maui. “I think this is very unfair,” said condominium owner Steve Tenney. “It’s draconian.” The proposed legislation would require condo owners to pay taxes according to the “highest and best use” of their properties, as other landowners now do.”

However, the economic recovery should provide a boost to Kihei homes for sale, as well as the rest of the Maui real estate market. According to a June 26, 2010 article also from the Maui News, “The long-awaited economic recovery will start in Hawaii and on Maui at the start of the new fiscal year – “also known as next week,” economist Paul Brewbaker told the Maui Chamber of Commerce on Friday.” The report by Chris Hamilton went on to state that “The state Council on Revenues chairman and principal owner of TZ Economics said that the recession already has ended and that his analysis predicted actual economic growth, not seen since the bottom fell out of the local and national economies nearly two years ago. “I think we’re on the threshold, but Maui is still lagging behind the rest of the state,” he said Friday after his speech. “The challenge I see is that perceptions are slow to adjust to the coming changes.” Brewbaker briefed about 130 Maui business leaders at a Chamber of Commerce luncheon at The Fairmont Kea Lani, Maui resort.”

July 15, 2010

Maui real estate housing market

The Maui real estate housing market showed strong signs of improvement in the month of May thanks to the expected economic recovery. According to a June 14, 2010 report from the Pacific Business News, “Sales of condominiums in Maui County doubled last month, while sales of single-family homes rose 35 percent. There were 104 condo units sold in May, including two on Molokai, which was 100 percent more than the 52 units that sold in May 2009, according to the Realtors Association of Maui. There were 81 single-family houses sold on Maui alone last month, a 35 percent increase compared to the 60 homes that sold on Maui, Lanai and Molokai during the same month last year.”

The Pacific Business News article continued to state that “The median price of a condo in Maui County last month was $412,500, which was a 3 percent increase compared to $399,000 in May 2009. Year-to-date, single-family home sales are up 49 percent compared to last year, while the median price for the first five months of the year is $460,000, down 9 percent. Condo sales for the first five months of the year are up 59 percent; however, the year-to-date median price for a condo in Maui County is $427,750, a 34 percent drop from the same period last year.”

The gradually improving economy in the Aloha State should contribute to the recovery of the Maui housing market. According to a June 11, 2010 report from the Maui News by Harry Eagar, “Hawaii’s economy has hit bottom and is bouncing back up, according to a county-by-county forecast by University of Hawaii economists. It will be a slow bounce, according to the University of Hawaii Economic Research Organization in a report issued today. Visitor arrivals are a key measure, and “all counties will see net growth for the year as a whole,” led by “surprisingly consistent growth on Maui.” UHERO notes that the Neighbor Islands went down further and faster than Oahu, so that even though they are rebounding faster than Oahu, the visitor industry on the state’s most populated island should remain relatively better off.”

July 10, 2010

Poipu housing market Kauai real estate

The Poipu housing market, a portion of the larger Kauai real estate market, showed some signs of possible improvement despite declining median prices. According to a report from a local business journal, both single family home sales and condominium sales were up drastically from year ago levels. The number of home sales rallied by a fully eighty percent, while condominium sales increased by almost forty percent. According to the Hawaii Information Service, 27 single family homes were sold on Kauai in the month of May, up from 15 sold in May 2009. The news was mixed, however, as the median price of these homes declined from $600,000 in May 2009 to $420,000 in May 2010. Five more condominiums were sold in May 2010, up from 13 in May 2009, while the average price fell a drastic 50% from year-ago levels. For the year so far, both homes for sale and condominiums for sale have seen median price losses of about 11%.

Poipu real estate condos for sale should also begin to benefit from a gradually recovering job market, which should in turn boost the overall economy of Hawaii. According to a June 11, 2010 report from Pacific Business News, “While Hawaii’s four counties will begin to see an economic recovery this year, real job growth won’t return until 2011, according to a new report. After suffering cumulative job losses of as much as 11 percent since 2007, Maui, Hawaii and Kauai counties will see smaller losses this year before registering gains of more than 1 percent in payroll jobs in 2011, according to the report by the University of Hawaii Economic Research Organization. Oahu, which saw smaller losses, will follow the same trend, with relatively flat growth this year followed by a gain of less than 1 percent in 2011. The Neighbor Islands suffered the largest losses in the visitor industry over the past two years, accounting for many of the jobs lost. However, all three counties should see growth in visitor arrivals ranging from 4.7 percent on the Big Island to 6.4 percent on Kauai to 7.4 percent on Maui, the report said. Despite that, visitor days for the Neighbor Islands will lag some 7 percent to 8 percent behind their peak values by 2012, while Oahu will rise to within a few percentage points of its 2007 peak values.”

July 8, 2010

Waikiki real estate market update

The Waikiki real estate market, a sector of the larger Oahu housing market that includes condominiums and apartment buildings, is showing strong signs of improvement during the most recent tracking period. According to a June 8, 2010 report from Pacific Business News, the number of home sales on the island of Oahu increased significantly in the month of May, while the median price of a home increased relative both to year-ago and month-ago levels. The Honolulu Board of Realtors reported that the median home price in May increased by about 12%, finally breaking the $600,000 mark. There were also 284 sales in the month of May, 68 more than last year at the same time. Condo sales on the island of Oahu also increased, by about 36% relative to May 2009. The median price of a condo rose more moderately, although it was still higher than in May 2009.

Although the improvement amongst Waikiki condos for sale is partially driven by the federal tax credit, the market as a whole seems to be looking up. The article went on to state that: “There were 1,183 sales of single-family homes during the first five months of the year, which was a 40 percent gain over the same period in 2009. Condo sales totaled 1,605 during the January-May period, a 47.5 percent gain over 2009. Year-to-date prices were also up slightly. The median price of a single-family home for the first five months of the year was $585,000, a 3 percent increase over the same period in 2009, while the year-to-date median price of a condo was $305,000, a 1.5 percent gain over the same period in 2009.”

One particular example of Waikiki real estate faced a repossession and lawsuit over a property dispute. According to a June 25, 2010 report from the Honolulu Star Advertiser, “An affiliate of France’s second-largest banking firm, Groupe BPCE, has assumed ownership of the Waikiki Trade Center office tower at 2255 Kuhio Ave. The BPCE subsidiary, Natixis Real Estate Capital Inc., repossessed the property on Monday in lieu of foreclosure. Natixis acquired the property from California-based investors doing business as Waikiki Trade Center Investors LLC, which paid more than $30 million in 2006 for the 24-story tower on leasehold land at the corner of Seaside and Kuhio avenues.”