Hawaii Real Estate Blog

January Big Island real estate update

Kailua-Kona saw a 228%  increase in Single Family Residential (SFR) home sales as compared to January ‘09.  Median sales prices are down 3% this month vs Jan ‘09.  The Kohala Coast recorded a nice increase in homes, up 43% this month, while the median price dropped 27%.  Hilo homes sales increased 80% this month vs. Jan ‘09.  Hilo median home prices were down 1% from Jan ‘09 to Jan ‘10.  These continued low prices and interest rates around 5% have resulted in increased buying activity and sales.  The Homebuyer Federal Tax credit ends in April 30, 2010, so don’t miss out on a good opportunity.

The Kohala Coast condo sales increased 500% in Jan ‘10, although that number is based upon 6 total sales. The median price dropped 52% for the month.  The condo market in Kailua-Kona saw sales of condos increase 73% for the month and the median price declined 4%.  The condo sales are improving due to more buyers using cash for the purchase and/or using a home equity line of credit.  Many lenders are requiring 30-35% down payment on vacation condos, since they carry more risk of mortgage default.

Current Market Conditions as of Feb 5, 2010… There are 591 Single Family Homes on the market for the Kona/Kohala Coast, which is an increase from last month’s 577 active listings, 117 homes in escrow, which is up from last month of 93 and 33 homes sold… 8 less than last month.  At the current buying rate, we have a 17.9 month supply of homes, which is more than last month’s 12.8 month supply.

Of the 591 Single Family Homes on the market, 23 are Foreclosure Listings and 109 are Short Sale Listings.

For Kona/Kohala Coast Condos, there are currently 568 on the market for sale, down from last month of 577.  There are 91 in escrow, up from 63 last month and 25 sales.  We have a 23 month supply of inventory, which is a decrease from last month’s 18 month supply.

Information on sales for the Big Island of Hawaii was provided by Kurt & Kirsten Carlson, Big Island real estate experts.

January 2010 Kauai real estate update

For the 4th month in a row Kauai sales volume has exceeded January 2009 number of sales by a large margin, prices are down and interests rates are low and Properties are moving! The Homes Sales Volume for January 2010 compared to January 2009  increased by 200% and the median price fell downward 16%

Condo sales volume for January 2010  compared to January 2009 increased 100% and decreased in medium sales price by 19%

With a Decline in prices and more inventory sellers are dropping prices and buyers are finding great deal in todays market.

December 2009 Big Island Real estate Market Update

Kailua-Kona saw a 114%  increase in Single Family Residential (SFR) home sales as compared to December ‘08 and sales are up nearly 18% for the year ending ‘09.  Median sales prices are down 23% for Dec ‘09 and down 21% for the year ending ‘09.  Hilo homes sales increased 5% for Dec ‘09, but down 4% for the year ending ‘09.  Hilo median home prices were down 28% from Dec ‘08 to Dec ‘09 and down 19% for year ending ‘09.  As the year came to a close, we saw positive improvements in regards to the number of SFR home sales in the following markets: North Kohala, Kohala Coast, Kailua-Kona, Kua, North Hilo, and Puna.

The condo market in Kailua-Kona saw sales of condos increase 75% for the month of Dec ‘09 vs. Dec ‘08 and the Kohala Coast condo sales increased 57% in Dec ‘09.  Kona condo median price declined 16% for the month and Kohala Coast median condo prices slid nearly 33%.  I expect the sales volume to increase during the winter months, as this is usually a busy time for condos.  Mainlanders are arriving on island and are starting to pick well prices condos.

Current Market Conditions as of Jan 5, 2010… There are 577 Single Family Homes on the market for the Kona/Kohala Coast, which is a decrease from last month’s 603 active listings, 93 homes in escrow, which is up from last month of 92 and 45 homes sold… 5 less than last month.  At the current buying rate, we have a 12.8 month supply of homes, which is more than last month’s 11.4 month supply.

Of the 577 Single Family Homes on the market, 28 are Foreclosure Listings and 102 are Short Sale Listings.

For Kona/Kohala Coast Condos, there are currently 577 on the market for sale, 63 in escrow, down from 65 last month and 32 sales.  We have a 18 month supply of inventory, which is a decrease from last month’s 29 month supply.

Keep an eye the market inventory supply shown in months.  A 6 month supply of properties is considered to be a balanced market.  Right now, it’s still a buyer’s, but our local market can change quickly and supply can dry up fast.

Information on sales for the Big Island of Hawaii was provided by Kurt & Kirsten Carlson, Big Island real estate experts.

November 2009 Big Island Real Estate Report

Kailua-Kona and the Kohala Coast reported more than a 100% increase in Single Family Residential home sales as compared to November ‘08. Hilo saw an increase in both homes sales and the median sales price of a home, jumping to $290,000, up from $239,250 in Nov ‘08. Not sure if that median price increase is an anomaly or the first sign that we’re nearing the bottom of the market. More data points are needed, so we can plot the trend. First time home buyer activity has increased as a result of the extended tax credits, continued low interest rates and low median prices.

For condos, we see median sale prices increase for Hilo, but sales dropped about 50%. The Kohala Coast reported a 75% increase in condo sales compared to Nov ‘08, while Kailua-Kona was almost unchanged. The next four months will be a busy season and we’re seeing the first signs of visitors sizing up the market, since the prices are near 2002-2003 levels.

Current Market Conditions as of Dec 11, 2009… There are 603 Single Family Homes on the market for the Kona/Kohala Coast, which is a increase from last month’s 563 active listings, 92 homes in escrow, which is down from last month of 118 and 53 homes sold… 8 more than last month. At the current buying rate, we have a 11.4 month supply of homes, which is less than last month’s 12.5 month supply.

Of the 603 Single Family Homes on the market, 26 are Foreclosure Listings and 118 are Short Sale Listings.

For Kona/Kohala Coast Condos, there are currently 609 on the market for sale, 65 in escrow, up from 58 last month and 21 sales. We have a 29 month supply of inventory, which is an increase from last month’s 25.5 month supply. The financing for vacation condos has stricter guidelines and lenders are requiring larger down payments in the neighborhood of 30%.

Information on sales for the Big Island of Hawaii was provided by Kurt & Kirsten Carlson, Big Island real estate experts.

Emmanuel’s Pre-School in Kailua

Emmanuel’s Pre-School in Kailua has recently changed curriculum and other items around at the school in hopes to make better learning environment for it’s students. Of course there are going to be some opposed to change, but it is natural for people to not feel comfortable when things change.

Here is a little about what the school:

Emmanuel’s Pre-School offers high quality child care to children ages 3 to 5 years old. The school has recently adopted an academic curriculum as well as integrated a weekly “Chapel Day” into the program. Teachers and staff provide a safe and nurturing environment, where children blossom through song, play and discovery. The school is open year round from 6:45 am to 6:00 pm. Spaces are available!! To learn more about the school, visit their website: www.emmanuelkailuapreschool.com

We recommend that anyone considering any school to do their own due diligence and research to make sure it is a fit for their child and family.

Quick July market update for Oahu

Number of Single family homes sold on the Island of Oahu for the month of July in 2009 were down by 17.5% compared to the same time in 2008. The average sales price for the month of July in 2009 was down by 9.1% compared to the same time in 2008.

Number of condos sold on the Island of Oahu for the month of July in 2009 were down by 32.3% compared to the same time in 2008. The average sales price for the month of July in 2009 was down by 7% compared to the same time in 2008.

The Kailua real estate market seems to be moving pretty close to the averages of the over all island. The Leeward side of the island is continuing to get hammered both by drop in prices and number of sales.

The Waikiki real estate condo market seems to be mixed. The number of sales seem be doing better than island wide, but the price drops seem to be more than the island average. That may be good for buyers, but not sellers at this time.

Trump Tower Waikiki Lawsuit

About two and a half years ago, Irongate Developers had a lot to brag about. The 464 units of the Trump International Hotel and Tower Waikiki Beach, the flagship project of Irongate, sold out in one day for prices ranging from $500,000 to $4,500,000 for the most expensive penthouse. This extraordinary development set a record for the Hawaii real estate sales as the total topped $700,000,000. At the time, Irongate released a statement claiming that the sale was a world record for a one-day sale. Fast-forward thirty months from the economically very different times of November 2006, and the promised 38-story skyscraper is nearing completion, starting to make its own impression on the legendary Honolulu skyline. All is not well however – driven partially by the devastating economic depression that began in the year 2008, two groups have filed suit in District Court and Circuit Court, claiming that Irongate misrepresented the involvement of the internationally recognized real estate tycoon. The lawsuit is especially important because of the possibility of a plaintiff-friendly verdict setting a precedent for future, similar lawsuits. According to Robert Hastings, president of a local real estate appraisal firm, “These suits are a function of the times, and there will be other litigation like this.”

The plaintiffs consist of two separate groups, one of which chose to air their grievances in the state circuit court, and the other of which chose to file suit in Honolulu federal court. Combined, the trial groups include about twenty dissatisfied buyers, representing investors from the mainland, Japan, and Hawaii itself. The claims of both lawsuits are essentially the same – that Irongate incorrectly listed Donald Trump as a “co-developer” in its 2006 promotional brochure, when in reality Trump simply licensed his name to be used with the project. The lawsuit alleges that Trump had the option to terminate the contract at any point in time, since the real estate mogul did not have any material investment in the tower. The plaintiffs claim that their decision to invest in the development was based heavily on the brand name of Trump, which grants an inherent value to the complex. They are concerned that if Trump exercises the option to withdraw his name, the Trump Waikiki will plummet in value.

The suit was filed by former Hawaii Attorney General Warren Price, and seeks to recover the initial deposits of the plaintiffs. Price stated that “Our clients intended to invest in an exclusive, one-of-a-kind Trump project in Waikiki. They were making an investment in a Rolls-Royce. They weren’t told there’s a license and it can be terminated, at which time the Rolls-Royce turns into a GM type of car.” Irongate was quick to respond to the lawsuit, saying that “A small group of individuals filed suit today. We believe that all of the claims are without merit and we intend to vigorously defend ourselves. Furthermore, we intend to pursue all of our own claims against these individuals. The vast majority of buyers are moving towards closing and are looking forward to their first visit to Trump Tower Waikiki Beach Walk later this year.”

Oahu Real Estate Market Update for June

There were 254 Oahu single family homes that sold in the month of June 2009 compared to 232 Oahu single family homes that sold in the month of June 2008. That was an increase in the number of sales by 9%. That is really good news and if the number of sales keeps increasing compared to 2008 as we continue on in the second half of 2009, the prices should stabilize and stop decreasing over time.

There were 293 Oahu condo properties that sold in the month of June 2009 compared to 355 Oahu condo properties that sold in the month of June 2008. That was a decrease in the number of sales by 17.5%. That was not great news. Condos do usually lag behind single family homes after having a down market. Hopefully we will see that percentage start to shrink as time goes on.

Fortunately Hawaii properties have not been hit as hard as some mainland areas like California or Florida. Some of those markets have seen prices go down by as much as 60% from there highs. These numbers are not great, but they are somewhat encouraging. Hawaii definitely has been going through a natural market price adjustment. It could not keep going up at the rate we were without a pull back.

I will continue to post numbers each month going forward through the rest of the year.

Oahu Numbers in May Similar to April

The home prices for single family homes on Oahu were down approximately 15% from the same month a year ago. It looks like the house prices have declined anywhere between 10% & 25% from a year ago depending what neighborhood you are looking at.

That is great news for buyers that have been waiting for prices to adjust and get something. Interested rates have come up a little bit from their lows, but are still are very low historically. Jim Cramer recently called the bottom for real estate. That is a pretty bold prediction. Not sure if we are there yet. One thing I do know is there are some great deals out there.

Feel free to contact us if you are interesting in finding out more about what is happening in Hawaii real estate market.

Oahu Market Update

Well there is some good and bad news to report. It all depends on whether you are a seller or a buyer. The good news tends to favor the buyers in the current market conditions. If you are a buyer you are able on average to purchase a home on Oahu for about 13% less than a year ago according to the sales stats for closings comparing April of 2008 to this year. With the fact that interest rates are at an all time low, it looks like a great time to buy a home here on Oahu.

We are seeing the activity pick up here on Oahu as far as offers and properties being put into escrow. These are all signs that the bottom may be near. Inventory has to shrink before prices can stabilize. It appears that is what may be happening.

There is some good news for sellers. It you have your property priced correctly with the recent increase in activity, you have a better chance of getting your home sold. I am hearing the same thing from real estate agents on the Big Island Hawaii, Kauai and Maui. Karen on Maui has informed me that investors are looking at Maui homes and condos again as investments. Russell on Kauai reports that they are looking for Kauai forecloseres or just a really good deal. He says there are plenty of them on Kauai at the moment.Looks like the confidence is definitely picking up and some buyers are starting to feel like this is a great time to get a piece of paradise.

Jim Cramer from Mad Money has been suggesting right now is a great time to start getting into real estate as an investment.

Here are some interesting numbers from April:
April of 2009 had approximately 184 SFR sell compared to 255 sell in April of 2008. The average sells price in 2008 was $731,361 compared to $640,000 in April of 2009. That is about a 13% decrease in price.

On average buyers have been able to pick up properties for 96% of list price for SFR and 95% of list price for condos.

Nobody can predict the exact bottom of the market, but with the decease in both the prices and interest rates it is definitely a good time to consider getting a piece of paradise.