The number of foreclosures in Maui, including distressed Kahului homes for sale, decreased in the month of November 2010. Although many local and state government officials have started to initiate formal investigations of foreclosure practices as well as coordinate government relief efforts, it appears that the initial flood of mortgage defaults may have subsided. According to statistics provided by RealtyTrac, there were a total of 877 foreclosures in the state of Hawaii during November. For Maui in particular, the number of foreclosures fell by approximately ten percent compared to November 2009.  By comparison, Kauai decreased by nineteen percent, while the Big Island saw seven percent fewer and Oahu actually saw fifteen percent more foreclosures.

However, the outlook for the next few months is cautiously optimistic, according to a forecast by the Hawaii Association of Realtors. The outlook, which was published in Pacific Business News, indicated that higher interest rates and fewer houses on the market may point towards a seller’s market in the upcoming year. Experts expect the interest rate to rise above five percent in 2011, while the local housing inventory remains low. Similarly, unemployment on the island of Oahu, including Ko Olina, is quite low compared to national levels at 5.4 percent. As interest rates rise, it is possible that potential buyers who have been on the fence will make the decision to purchase a property in the upcoming months. Ko Olina’s economic success is heavily dependent on the tourist industry, which suggests that the region’s real estate might improve as the state’s most important economic driver also improves.

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For the moment, however, it appears that the foreclosure investigation will have a delayed effect on Hilo homes for sale, as the third quarter foreclosure rate for the state increased by nearly fifty percent. According to an October 14, 2010 report from Pacific Business News, “The number of properties in Hawaii with foreclosure actions jumped 48 percent in the third quarter when compared to the same quarter in 2009, ranking the state 10th in the nation, according to the latest statistics from RealtyTrac. There were 4,060 properties with foreclosure filings — including notices of default, trustee sales and bank-owned properties — during the July-September period, or a rate of one per every 126 housing units. September alone saw a 67 percent increase in filings on Hawaii properties over the same month in 2009, ranking the state ninth in the nation. There were a total of 1,617 properties with foreclosure filings last month, or one per every 317 housing units.”

Statistics released by RealtyTrac seem to indicate that the negative influence of foreclosures on Kona homes for sale will not stop anytime soon. Across the state, and on Hawaii Island in particular, there were a considerable number of foreclosures in the third quarter of the year. According to an October 14, 2010 report from Pacific Business News, “The number of REOs more than doubled on the Big Island, which had 397 bank repossessions last quarter, compared to 160 a year ago. Kailua-Kona continues to lead in that county with the greatest number of foreclosure filings, and the greatest number of bank repossessions with 153, almost triple the amount it had in the third quarter of 2009.” The effect of the recent Bank of America automated foreclosure controversy is unclear, although in the end it will likely not stem the tide of distressed properties.

Less Hanalei home owners are facing serious financial distress, according to new statistics reported by the Honolulu Star Advertiser. Hopefully, this means that fewer Hanalei homes for sale will be Kauai foreclosures or short sales on Kauai. The November 2, 2010 article by Alan Yonan noted that “The number of Hawaii residents filing for bankruptcy dropped below 300 in October for the first time in eight months, although local bankruptcy attorneys say business is still brisk by historical standards. The 297 filings last month were the fewest since 291 cases were filed in February, according to federal Bankruptcy Court statistics. There was an 8.4 percent rise in filings from October 2009, the smallest increase in nearly a year. Bankruptcy filings for the first 10 months of the year are still running well ahead of last year’s pace. Despite signs that the economy is finally showing signs of improvement, many consumers are continuing to dig themselves out of debt racked up during the recent recession, which saw Hawaii’s unemployment rate hit a three-decade high.”

Makena homes for sale and other Maui properties continue to face the difficulties associated with high foreclosure rates, according to a November 4, 2010 article from the Lahaina News. The report by Mark Vieth stated that “Fear arrives in the mail at hundreds of Maui households each month. In September in West Maui, for example, 71 homeowners received letters that their houses went into foreclosure. RealtyTrac reported 338 Maui foreclosures in September and 1,617 new filings in the state that month. Hawaii has a non-judicial foreclosure law (HRS 667) that gives mortgage companies the authority to foreclose on a property without court approval. If an owner falls behind two months on house payments, the mortgage company can simply submit an affidavit to the state Bureau of Conveyances to be stamped, received and filed.”

Lahaina homes for sale continue to be adversely affected by the high percentage of foreclosures on Maui and in the state. According to an October 14, 2010 report from the Honolulu Star Advertiser, “In Hawaii, much of the foreclosure trouble has occurred on the neighbor islands, where investors rushed to buy vacation property during the real estate frenzy. Most of the foreclosure filings counted by RealtyTrac still involve property owners struggling to keep their homes. Of the 1,617 Hawaii filings last month, 80 were default notices and 1,046 were sale notices. Another 491 were repossessions by lenders. By county, Maui had the worst foreclosure rate in September, at one filing per 191 households, or 347 filings in all. The Hawaii island had the next worst rate at one filing per 194 households, based on 411 total filings. Kauai’s rate was one filing per 246 households, based on 121 filings. Honolulu real estate had the most filings with 738, but it had the lowest rate, at one filing for every 457 households.”

Three other indicators of market health also had good news for Kaneohe homes for sale, as inventory numbers, days on market, and percentage of original list price received at sale all ticket upwards. According to an October 7, 2010 report from Honolulu Magazine, “The days-on-market stats, which indicate the median number of days from when a property is first listed to when it’s pending sale, showed the most change: Last month, single-family homes remained on the market for 32 days, a nearly 40-percent decrease from Sept. 2009; condos lingered on the market for 39 days, representing an 11.5-percent decrease from Sept. 2009. The island’s inventory-of-homes data shows steady declines in the month of September…Another indicator of a steady market is the percent of original list price received at sale, which is the average percentage found by dividing a sold property’s sales price by its original price. Single-family homes in Sept. 2010 received about 95.2 percent of the original list price, a 2.9 percent increase from Sept. 2009. Last month, condos also received approximately 95.2 percent of their original list price, a 1.6 percent increase from Sept. 2009.”

Honolulu homes for sale were purchased for a lower median price in the month of September, which is an expected corollary to a higher rate of sales. According to an October 7, 2010 article from the Associated Press and BusinessWeek, “The median price of a single-family home on Oahu dipped slightly to $622,450 in September after rising for four straight months. The Honolulu Board of Realtors on Wednesday reported that September’s figure was down from the $640,000 reached in August but up from the $605,000 in September 2009. The median price for a condominium increased to $335,000, up $30,000 from August and 8.2 percent from a year ago when it was $309,500. There were 274 homes sold in September, an 8.3 percent increase from the same month last year. Condo sales softened with 298 closings, down 15.8 percent. The board reports that the market is holding steady and that homes and condos are selling faster than they did last year.”

An October 14, 2010 report from Pacific Business News suggests that the negative effect of foreclosures on Kailua homes for sale and Oahu at large has not been substantially mitigated by the Bank of America foreclosure freeze. According to the piece by Janis L. Magin, “A closer look at the RealtyTrac third-quarter statistics on foreclosures released Thursday shows the number of bank repossessions in Hawaii soared 72 percent compared to the third quarter of 2009. RealtyTrac’s CEO James Saccacio says bank repossessions hit a record high nationally, but he also said that he expects those numbers to dip as the big banks halt the foreclosure process because of the investigations into the so-called robo-signing scandal. But even if the numbers go down moving forward, Thursday’s figures still show a large increase in bank-owned properties are going to go back on the market, if they haven’t already, and Realtors say those properties often have a downward effect on market prices.”

Though the real estate market here has stopped what seemed like a never-ending free fall, it is still far from out of the financial crisis woods. According to the Hawaii Island Board of Realtors’ monthly statistics, there were 14 residential homes sold in South Hilo in September, a decrease from 18 at the same time last year. North Hilo, on the other hand, saw four homes sold in September, up from no sales at the same time last year. Although sales seemed to be struggling in September, however, so far in 2010, the number of residential homes sold in South Hilo is outpacing last year’s figures to date by more than 24%, with 149 homes sold in the first nine months of the year. North Hilo, too, has seen sales figures besting last year’s, with eight home sales this year so far versus just six last year at the same time. But despite promising sales volume, home values are still stuck in the mud. In September, South Hilo residential homes fetched a median sales price of $257,500, down 8% annually. So far this year, South Hilo homes sales price stand at a median of $255,000, down just over 7% from the same time a year ago. North Hilo sales are faring better though, with the median sales price for the first nine months of the year at $550,000, up almost 20% from a year ago.

Signals from the Hilo condo markets were mixed in September. There were four condos sold in South Hilo in the month, double the number sold in September of 2009. But so far this year, sales volume has failed to outpace 2009. There have only been 29 condos sold in South Hilo through September, down 21% from volume at the same time last year, which stood at 37 over the first nine months. Though the median price for condos sold in Hilo fell in September, it’s actually up annually based on sales figures for this year to date. The September median price for a condo in Hilo was just over $61,000, down by more than 44% from $110,000 a year ago. But in the first nine months of 2010, the median condo sales price comes out to $90,000, eclipsing last year’s  same figure of $76,250 by more than 18%.

Today the market for Kona homes for sale remains a bit of a mixed bag. While some statistics have risen and shown promise of slowly making their way back to pre-crisis  levels, other areas have stagnated. According to statistics from the Hawaii Island Board of Realtors, in September, there were 34 residential homes sold in North Kona, a 41% annual increase. South Kona saw its sales volume unchanged year over year, with two sales of residential homes in September of both this year and last. The median sales price for a residential home in North Kona in September was $350,000, a figure that actually fell annually by 5.4%, from $370,000 a year ago. The median price year-to-date for homes in North Kona stood at $410,500 in September, off by more than 5.5% annually. South Kona, too, is still feeling the aftershocks of the global economic turndown. In September, its median sales price for residential homes was $246,500, down an even greater 16.4% annually, from $295,000 in 2009. So far this year, the median sales price for South Kona homes is also down, to $275,000 from $342,750, a decline in price of nearly 20% annually – a discouraging sign for sellers but a sign for buyers that the time may never be better to hop into the market.

Meanwhile, the condo market in North Kona, which has most of the condos in the Kona region, shows more signs for progress. In September, there were 22 condos sold, up 37.5% from September of 2009, when there were just 16 condo transactions. So far in 2010 up through September, 235 condos have traded hands on the market, an increase by just over 99% from 2009, when only 118 condos had sold in the first nine months of the year. Sales prices for Kona condos was on the upswing in September, at a median price of $240,000, an increase of more than 17% from last year’s figures, when the median price was just $205,000. So far this year in the condo market, however, the median condo price is still off. In the first nine months of 2010, the median condo sales price stood at $223,250, down by almost 20% from the first nine months of 2009, when that figure was at more than $278,000.

In September, the most recent month for which statistics are available, there were three residential homes sold, unchanged from the same month a year ago. There were five condo sales in September, up from four in September 2009. So far in 2010, there have been 61 residential homes sold, a healthy 39% increase from sales over the first nine months of the year at the same time last year. Condo sales also saw a 30% increase in sales volume over the first nine months of the year, with 52 condos sold from January to September, versus just 40 condo sales in the first nine months of 2009.

Hanalei homes for sale in September garnered a median price of $610,000, an 11% decline from September a year ago, when the median price for a residential home was $685,000. The median price in September for condos fell even further, by nearly 27%. In September, the price was $385,000, down from $525,000 at the same time a year ago. The median price year to date for residential homes currently stands at $645,000, down about 6% from a year ago, when the price was $610,000. The year to date median for condo sales through September was $448,900, a 25% decline in the median from last year’s first nine months, when that figure was $600,000.

In August, according to the Realtors Association of Maui, there were four Lahaina homes for sale closed upon. The homes had a median sale price of $449,500, a marked improvement from the prior month’s median of $310,500, but not quite enough to eclipse the median from a year ago, which was $451,500. The volume of four homes sold is encouraging ,though, as there was just one sale in July and only two sales in August of 2009. Lahaina real estate’s condo market is quite difficult to get a read on in August, as there was only one condo sold, and at an unusually low price of $100,000. In July, there were three condos sold, bringing in a median price of $415,000 each, which was only off slightly from August a year ago, when eight condo sales fetched a median price of almost $429,000.

Year to date, there have been 29 single-family homes sold in Lahaina, an improvement from 2009 year-to-date figures in August by 53%, encouraging signs that more people are willing to get back into the market. The median sales price for a single-familiy home year to date in August was $475,000, though, still off 27% from August 2009, when that figure was $650,000. The condo market current year-to-date sales remain unchanged from the same time as in 2009, with 38 condos sold so far this year. The median sales price of all those 38 condos sold this year is only off from last year’s median by a mere 3%, at $398,000 versus $410,000, showing the condo market is outperforming the home market in Lahaina.

The market for single-family homes in Kailua saw most signs improving. There were 31 new Kailua homes for sale listed on the market in August of this year, unchanged from a year ago, but single-family home sales fell for the month by annual rate of 17%, to 19 from 23. The median sale price rose in August $817,000, up 3.5% from $789,500. Homes commanded 94.7% of their listing prices when sold, up 1.5% on-year. The days on market and inventory both fell on an annual basis. Kailua homes for sale spent just 20 days, on average, on the market before selling, down from 47 a year ago, a 57% improvement. Meanwhile, the current inventory of single-family homes stood at 123, down from 153 in August 2009.

The signs of improvement in the market for condos in Kailua has been improving more slowly than for that of single-family homes. There were seven new condos listed in August, up from six last year in August, and the number of closed sales in the month was unchanged at eight. The median price for condos, unlike home prices, actually fell annually in August, to $320,000 form $380,500, a 16% decline. Sellers, meanwhile, were getting more out of their condos than last year, with resales commanding 95.8% of asking prices, up by more than 7% from a year ago. Condos did clear off the market more quickly, spending an average of just 20 days up for sale before closing, compared with 66 days last year. Inventory remained mostly the same, rising a bit to 28 condos in August, from 24 a year prior.

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According to the Honolulu Board of Realtors, there were 45 new listings of Kaneohe homes for sale in August of this year, unchanged from a year ago. During the month, there were 15 closed sales, down 11.8% from August of last year, when there were 17 sales. The median sales price in the month was $650,000, up a mere 0.2% year-over-year, having increased by just $1,000, and sales were seeing a higher percentage of the listing price paid as the final price, was the ratio at 95.2% in August versus 94.1% a year ago.  The biggest improvements have been seen in the inventory: In August, there were just 97 homes for sale in Kaneohe, down from an inventory of 168 at the same time one year ago. In August, homes spent an average 39 days on the market before selling, which was up 62.5% from a year ago, when the average home was on the market just 24 days before selling.

The Kaneohe condo market. There were 21 new condos listed in August, compared with just 18 listed at the same time a year ago. Sales saw an improvement record of 70% annually, with closed sales during the month of August jumping 70%, from 10 to 17. The median price, too, showed improvements, rising to $388,000 from $372,500, a 4.2% rise. Condos spent an average of 39 days on the market in August, down from 45 a year ago, and the current total condo market inventory in Kaneohe stood at 56 in August 2010, down from 64 in 2009.

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According to the Honolulu Board of Realtors statistics from August, there were 450 new listings in August, fewer than in the two months prior, but more 17% more than the previous year, when there were just 384 listings in the month. There were 360 sales pending in August, up from both July and June’s figures and a more than 45% improvement annually. Meanwhile, closed sales numbered 224 in the month, a slight 6% decline from the previous year, and a decline from June and July figures, both of which were over 265. Homes for sale in Honolulu spent an average of just 32 days on the market before selling during August, improved slightly from July’s 39-day average and down from a year ago, when the figure was 49 days.

The median sales price for homes in Honolulu in August was $645,239, up from July’s price of $604,500 and up even further from June’s $582,500. The median increased more than 15% annually, from a clip of just $560,000, an encouraging sign that the market is on its way back to normalcy.  The average sales price came in at over $806,000, up more than 17% annually and up more than $70,000 from the previous month and more than $100,000 higher than in June.

There were 1,526 active listings available at the end of August, including foreclosures in Honolulu. This figure was down 17.5% annually. Homes sold on the Honolulu market were fetching 94.8% of their original listing price in August, down slightly from July’s 95.8% but improved from a year ago’s 93.6%. At the end of the month, there was a 6.5-month supply of inventory still for sale on the market, a more than 28% improvement from supply in August 2009, when inventory stood at more than 9 months’ supply.

Waikiki real estate suffered, along with the rest of Hawaii, after the U.S. economy began to see a downturn in late 2008 and eventually fell into recession. As markets across the nation saw home values plummet and the number of distressed homeowners rise, so too did Waikiki. Prices that had so recently been at all-time highs began to tumble, leaving many owners owing more on their properties than they were now valued for, and the number of foreclosures in Waikiki saw a significant rise in the immediate periods after the crisis.

Though many Waikiki condos for sale still have yet to reach their pre-crash values again, the market has begun to show at least some slight signs of improvement at times, though most indicators have taken a pattern of alternating rising and falling, and the market still has a long way to go to match the numbers in its heyday. In July, Waikiki condos had an average selling price of $431,233, down significantly from June’s figure of more than $568,000. The number of condos sold in July was down as well, by 18% from 61 to 50.

One positive indicator in July in the Waikiki market was the number of days properties spent up for sale before closing, which fell to 73 in July from 106 in June and 84 in May. The number of new listings in July fell a bit as well, down 21% to 112. Because sales volume was down this month, the total inventory rose. It stood at 593, up slightly from June’s figures but encouragingly down 8% annually. The average listing prices for home hitting the market rose to more than $537,000 from about $460,000 in June and $382,900 in May. The average price for sold distressed properties in June was $237,333, showing that there are certainly some homes that can be snatched up for considerably low prices. June saw an inventory of 32 distressed properties in Waikiki, up 81% annually, an indication that the number of homeowners in trouble has risen significantly in the past year.

Though many things have improved some, the market remains volatile and prices seem to continue to fluctuate up and down from month to month, so it is difficult to extrapolate too many trends, particularly in a market where there may only be a handful of sales per month. The area also continues to see many struggling home owners, many of whom have faced foreclosures in Kauai.

In the month of July, the most recent for which statistics are widely available, residential real estate saw six homes sold in Koloa–of which Poipu is a part. This was a decrease year-over-year of one, as last year saw seven sales in July. So far this year, the community has seen only 12 homes change hands, down from 15 at this time last year, suggesting sales are slowing. Prices of Poipu homes for sale saw a bit of an annual decrease in July, a sign the market is still struggling. The median price fell to $437,500, from $450,000 a 2.8% decline. So far this year, the median is off by $25,000, or more than 5%.

The market for condos saw a similar summer slump, with only three condos sold in July versus five in the same period a year earlier. So far this year, however, the condo market has seen the pace for sales pick up versus last year, with 21 condos sold up to July versus just 14 in the first seven months of 2009. The sales prices of condos have continued to plunge. In July, the median price was $375,000 for sold condos, down by a full $300,000 from last year, when that figure was $675,000. So far this year, condo prices have shown steady signs of falling, with the median to date in 2010 at $443,000, down more than 26% from the same period of last year.

The Oahu market experienced some steep drops in home values at the onset of the financial crisis that hit the U.S. economy. Many homes lost large amounts of their previous value, and the number of foreclosures on Oahu increased dramatically. The inventory of homes for sale on Oahu also steadily rose as more and more people were either forced out of or walked away from their homes and credit became harder to come by for those looking to buy.

Recently, the Oahu real estate market has fared a bit better since the downfall in the U.S. housing market first began nearly two years ago, with the Honolulu Board of Realtors calling its market “relatively steady” in July. In Honolulu, sales volume was up annually for single-family homes as was median price. Condominium sales still saw struggles, however, with both sales volume and median prices down in that category. Year-to-date, the average price of both single-family homes and condos are up, if only ever so slightly. Sales volume is up significantly in both categories as well year-to-date.

“Oahu’s post-tax credit sales landscape is quieter, as are other markets, but we seem to be weathering better than our Mainland counterparts,” said Brian Benton, President of the Honolulu Board of Realtors.  “Unlike most cities, Honolulu saw its pending sales in July increase over a year ago.”

The Maui market, however, has seen many ups and downs in recent times. The area, like so many in this island state, was hit hard by the wider U.S. economic downturn, and it saw many negative effects to the local real estate market. The number of homeowners behind on their mortgages as well as the number of foreclosures in Maui rose steadily, and many properties saw their values come crashing down to levels not seen in several years.

Since late 2008, when the market began to tank, there have been some improvements in Maui, but the sector isn’t quite out of the hole yet. In the first half of 2010, Maui had one foreclosure filing per every 245 households, with a total of 270. Some sales prices have risen, though those figures can be very volatile and fluctuate quite widely from month to month.

According to monthly statistics, in July, the median sales price for single-family homes for sale in Maui was $500,000, up just $1,000 from the previous month and down by $32,000 annually. The figure was based on 61 homes that sold over the month, a slowdown from June’s 79 sales but an improvement year-over-year from 59. The condo market saw similar signs. The median sales price was $390,000 in July, down $45,000 from June’s figures and down $27,000 annually. The number of condos moving also fell. July saw just 69 condos sold versus June’s figure of 106; in July of last year, there were 78 sales.

Hopefully, Kaanapali condos for sale will follow the larger trend of commercial real estate in Hawaii and on Maui, which has been faring better than the housing market. For example, an August 20, 2010 report from the Honolulu Star Advertiser noted that “Hawaii commercial real estate sales appear to be rebounding, according to a new report forecasting an end this year to a four-year downturn. Acquisitions of the Continental Surf Hotel in April and the Hotel Hana Maui in May were among 56 sales that helped generate $354 million in commercial property transactions during the first half of the year, a 17 percent rise from $302 million in the first half of last year. Stronger activity in the second quarter erased what had been a 10 percent reduction in sales volume through the first three months of the year, according to the report by Colliers Monroe Friedlander…Second-quarter sales included Hotel Hana Maui for $6.8 million, Continental Surf Hotel for $14.7 million, Waianae Mall for $25.5 million and land under the Iwilei Home Depot for $23.2 million.”

Nearly two years have passed since the market first began to fall, and things have begun to pick up a bit for Kauai homes for sale, particularly in terms of volume if not in terms of price. In July, the most recent month for which statistics are readily available, there were 25 residential homes sold in Kauai, which actually represented a slight decline of 7.4% from a year ago. But year-to-date figures are still strong and are up on last year’s figures by more than 56%. Condo sales were slightly stronger. In July, there were 18 condos sold, up 20% from last July, when only 15 were sold. And so far in 2010, condo sales are outpacing 2009 by more than 56%, with 134 sold in the first seven months of the year.

Sales prices have been quite volatile. One month, the median price may be up by several thousand dollars only to fall the next month by even more. In July, residential homes sold at a median price of $450,000, up 4.6% from a year ago, when that figure was just $430,000. So far this year, however, the median price is down about 0.75% to $446,500 from the median through July of last year, $449,750. The condo market has also suffered continuing price declines. In July, the median price for a condo sold was $395,000, down more than 25% year-over-year. So far this year, condos have also seen an overall price decline. In the first seven months of the year, the median condo sales price was $353,875, compared with a figure of $400,000 in the first seven months of 2009.

The Kihei real estate market, like the market in too many other island communities, has seen its structure upended over the past couple of years as it has been faced with dealing with the fallout from the financial crisis that erupted on the mainland and later spread across the country to the many housing markets. Many homes saw their record-high values plummet, and the number of foreclosures in Maui rose to levels not seen in years. This year has seen some improvements in the market, but it remains unstable and has yet to level out completely.

According to monthly statistics compiled by Maui real estate specialists, in July, the number of single-family Kihei homes for sale that ended up with buyers closed in at seven, down from the prior month’s figure of 11 but up from a year ago, when there were just five. The median sales price in July was $700,000, up substantially from both a month ago — when it was just $450,000 — and a year ago — when it was $397,000.

The condo market is the more active sector of real estate in Kihei, since the number of condos is greater than the number of homes in this town. There were 31 condos sold in Kihei in July, off slightly from June’s 34 sales but besting figures from a year ago by five. The median price, meanwhile, was up to $290,000, up nearly $30,000 from June’s figures and more than $33,000 higher than that figure from July 2009. So far this year, 234 condos have sold in Kihei, much higher than at the same time a year ago, when only 126 condos had changed hands. This suggests the market is moving more as an increasing number of buyers jump into the market and are able to secure financing for their new properties.

Although Hawaii Kai homes for sale and condos for sale seem to be stuck in the doldrums for the time being, there are some positive examples of Oahu commercial real estate making a turn-around. A July 30, 2010 report from Pacific Business News noted that “Oahu’s commercial real estate market is showing signs of recovery, but it could take at least another year before it is back on firm footing. That’s the assessment of leaders of three large Hawaii commercial real estate companies as the industry moves into the final five months of the year. With commercial real estate taking a beating as Hawaii and the rest of the world struggled to survive the global recession, industry leaders here believe that the worst is likely over and recovery is on the horizon. The impact of the financial crisis is evident in the dramatic decline in commercial real estate transactions over the past four years. In the first quarter of 2006, there was $1.4 billion in transaction activity, 88 percent higher than the first quarter of this year, said Mike Hamasu, consulting and research director at Colliers Monroe Friedlander.”

Much of the same mixed news for Ko Olina homes for sale was reported by Hawaii News Now on August 9, 2010. The article by Howard Dicus noted that “Realtors across Hawaii reported generally strong home sales and prices on deals that closed in July, if not the much-improved market they hoped would be spurred by low mortgage rates. Oahu saw 268 July home sales (up from 266 a year ago) for a median price of $605,000 (up from $595,000) while buyers closed on 320 condo sales (down from 343 a year ago) for a median $299,000 (down from $307,250), the Honolulu Board of Realtors reported Monday.”

However, Waimea homes for sale and condos for sale continue to be adversely affected by the amount of foreclosures in the market. An August 1, 2010 article from the Honolulu Star Advertiser stated that “The Hawaii foreclosure mess spreading through Hawaii’s housing market is hitting condo projects especially hard, contributing to depressed property values and forcing many associations to raise monthly maintenance fees…Although residential foreclosures represent only a fraction of Hawaii’s overall condo inventory, their numbers are growing and the fallout is causing major budget problems for many projects already facing steep increases in maintenance, utility, insurance and other bills, according to real estate professionals and condo owners. “I’ve never seen it this bad,” said Hawaii First Inc. President Richard Emery, who has been managing isle condo properties for more than 20 years. His company oversees nearly 200 projects statewide. The foreclosure crisis is especially worrisome, real estate officials say, because Hawaii has the highest concentration of homes in condo and community associations of any state in the country.”

Though the Hawaii market has seen some overall improvements since late 2008 when the housing market downfall began, it remains highly volatile. As recently as the month of April, the Associated Press reported that there were more than 1,470 foreclosure notices, more than double the figure from a year earlier and enough to put foreclosures in Hawaii at a figure of one for every 387 households.

But every real estate market is local, and the lingering effects of the recession vary by region. The Maui market recently saw encouraging signs, with its median home sales price in June higher than figures from a year ago, a positive sign that the market may be turning. ABC reported that both Kauai and the Big Island were also showing signs of markets re-emerging over the summer.

The median price for homes sold in Hawaii County, or the Big Island, rose slightly in the second quarter of 2010 from the first quarter, though both of those figures stood below the figure for 2009′s Q4. Kona saw a healthy increase in its median price from the first to the second quarter of this year, rising by nearly $50,000.  The Pacific Business Journal reported that between January and June of this year, sales of existing single-family homes were up 32.5% on Oahu, 43% on Maui, 71.8% on Kauai and 45.8% on the Big Island. In addition, condo sales were up 46% on Oahu, 64% on Maui, 65.% on Kauai and 101.5% on the Big Island. Despite the uptick in sales activity, the median prices of Hawaii homes for sale still struggles. Only Oahu saw its median sales price increase over the six-month period, up a mere 2%. The other areas saw prices fall between 2% and 7%.

The Kohala Coast real estate market should begin to improve along with the rest of the local economy, which has started to turn around along with the tourism sector. A July 28, 2010 piece also from the Pacific Business News found that “Visitors to Hawaii continue to arrive in greater numbers and spend more, the Hawaii Tourism Authority said Wednesday. In June the number of tourists hitting Hawaii shores rose 13.6 percent to 625,522 visitors compared to the same month last year. Total tourist spending in June rose 16.1 percent, or $131.7 million, to $948.9 million when compared to June 2009. Daily spending averaged $161 per person, up from $151 per person a year ago…The HTA statistics released Wednesday measure spending by visitors who arrive by air and do not factor in spending from cruise ship passengers. All islands saw heavier visitor traffic this June, with arrivals to Oahu increasing the most, 18.3 percentage points, or 390,206 total visitors. Oahu was followed by the Big Island, which saw an 8.9 percentage point increase, then Maui with a 5.9 percentage point jump and Kauai rounding out the major islands with a 5.8 percentage point gain over the previous June.”

Princeville homes for sale should see improvement upon the recovery of the Hawaii real estate housing market. Although the state is seeing growth overall, the neighbor islands including Kauai are lagging behind somewhat. According to a July 21, 2010 article from the Honolulu Star Advertiser, “June marked the third consecutive decline in the state’s unemployment rate, which peaked at 7 percent last summer. In Hawaii, the statewide average was pulled down by the relative strength of the Oahu job market, where the unemployment rate was 5.8 percent. Hawaii County led the state with a 10.4 percent unemployment rate, followed by Kauai County at 9.1 percent and Maui County at 8.5 percent. The county jobless rates are not seasonally adjusted.”

This negative news for the Mililani real estate market was echoed by a July 30, 2010 report from Credit.com. The piece noted that “In Honolulu, the official unemployment rate was 5.8 percent in June, a relatively low figure compared to other cities around the country. However, the number doesn’t include those who are forced into part-time jobs or have become so discouraged that they’ve stopped looking for work. When they are added in, the rate rises to 15.8 percent. Economists estimate Hawaii has lost about 40,000 jobs, or about 6 percent of the total, since the recession started in late 2007. And a complete recovery in the job market is not even on the radar screen yet. The state Department of Business, Economic Development and Tourism, which makes projections only three years out, expects wage and salary jobs to total 609,400 in 2013, still well below the 2007 peak.”

The number of Kahala homes for sale that were actually purchased increased somewhat in the month of July, but the figures were somewhat disappointing compared to expectations spurred by the federal tax credit. An August 9, 2010 report from Hawaii News Now stated that “Realtors across Hawaii reported generally strong home sales and prices on deals that closed in July, if not the much-improved market they hoped would be spurred by low mortgage rates. Oahu saw 268 July home sales (up from 266 a year ago) for a median price of $605,000 (up from $595,000) while buyers closed on 320 condo sales (down from 343 a year ago) for a median $299,000 (down from $307,250), the Honolulu Board of Realtors reported Monday.”

The Hawaii real estate market also includes a commercial sector, which has seen some drastic changes recently. For example, a number of Hawaii mall properties have switched hands lately, including one on the Big Island. According to a July 12, 2010 report from KITV News, “General Growth Properties Inc. on Monday announced it has turned the management and leasing of 18 of its malls to Jones Lang LaSalle in a deal that includes three Hawaii properties. The change affects the Hawaii malls Kings’ Shops in Waikoloa on the Big Island, Queen Kaahumanu Center in Kahului on Maui and Windward Mall in Kaneohe on Oahu. GGP still retains control of Honolulu’s Ala Moana Center and Ward Centers, Prince Kuhio Plaza in Hilo and Whalers Village in Lahaina. General Growth owns more than 200 malls in 43 states. It has been under Chapter 11 bankruptcy reorganization. Jones Lang LaSalle is a financial firm that specializes in real estate from retail space to residential. About 200 employees who work in management teams at the 18 properties plus 30 corporate employees who provide services to the properties will become Jones Lang LaSalle employees, GGP said.”

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.”

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.

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.

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.”

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.

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.”

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.”

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.”

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.”

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.”

The Oahu foreclosure market, especially in the commercial sector, continued to face difficulty despite the perceived recovery of the rest of the real estate market. According to a June 18, 2010 article also from Pacific Business News, “The Four Seasons Resort Maui in Wailea, which serves as collateral for one of the largest delinquent loans in Hawaii, got a bit of more bad news this week when a portion of the loan was assigned an appraisal reduction of 25 percent. The Maui resort tops a list of more than a dozen hotel, industrial, office and retail properties that have defaulted on multimillion-dollar commercial mortgages or have been lost to foreclosure. The $425 million loan on the Four Seasons Maui property, which is owned by billionaire Michael Dell’s investment firm, was transferred to special servicing in April after falling delinquent on payments, according to Trepp.com, which researches commercial mortgage-backed securities and commercial mortgages.”

The economy of the island of Oahu seems to be gradually recovering as well, which should help boost the already rising numbers in the Oahu housing market. A June 21, 2010 report from the Associated Press found that “Personal income in Hawaii has grown at the sixth-fastest rate in the country through the first quarter of this year. The U.S. Bureau of Economic Analysis reports Hawaii residents’ cumulative personal income increased by 1.35 percent in the first quarter compared to the previous quarter. Military earnings jumped the most, at 0.37 percent. Retail trade, construction and federal civilian earnings all went up 0.13 percent. The industry with the largest earnings decrease was real estate, at a minus 0.05 percent.”

However, delinquent loans, including foreclosed properties and short sales, continued to be a drag on Big Island homes for sale and other sectors of the local housing market. According to a June 18, 2010 report by Janis L. Magin of Pacific Business News, “Sometimes it can take several months for a property to drop off the list after the owner has settled with the lender, but Bratton said he has seen more Hawaii properties turn up on the lists of delinquent loans. Several Neighbor Island shopping centers, including the Kings’ Shops at Waikoloa on the Big Island, Coconut Marketplace on Kauai, Coconut Grove in Kailua-Kona and the Kona International Market, also turned up on Trepp’s list of distressed loans.”

However, one prime example of Kauai real estate – not a Kauai home for sale but a large mixed-use project, continues to move forward. A June 11, 2010 report from the Pacific Business News by Jon Letman noted that “Despite an economic downturn lasting three years, Kauai’s largest real estate development continues to move forward, transforming Kauai’s South Shore. Kukuiula, a 1,010-acre project spearheaded by the Kukuiula Development Co. Hawaii LLC, a collaboration between DMB Associates Inc. and A&B Properties Inc., combines luxury resort residences, a 90,000-square-foot retail village, an 18-hole Tom Weiskopf golf course, clubhouse, spa and cottage-style visitor accommodations. In 2008 and 2009, new roads, a congestion-reducing traffic roundabout, beachside public parking and the Kukuiula Village retail center all came online, proving to skeptics that Kukuiula Development Co. and its partners had the staying power to survive the economic downturn. By the end of last year, the first golf holes, dotted with dozens of newly planted mature coconut palms, could be seen from the Ala Kalanikaumaka bypass built for the project.”

The report on the health of the Hawaii housing market went on to analyze condominium sales and median prices. It noted that “Condo sales on Oahu soared 35.5 percent in May to 355 units sold, up from 262 units sold in 2009. The median price of a condo rose 4 percent to $312,500, up from $300,000 in May of 2009. ‘May’s sales figures and median prices are certainly encouraging for Honolulu’s real estate industry’ board President Brian Benton said in a prepared statement. ‘The pent up demand for residential properties are now being met with homes and condos being priced right for first-time homebuyers, those wanting to trade up to a larger home or individuals wanting to purchase investment property.’”

The delinquent home market, especially Hawaii foreclosures, continued to hound properties in the Aloha State. According to a June 18, 2010 article from the Pacific Business News, “The Maui resort tops a list of more than a dozen hotel, industrial, office and retail properties that have defaulted on multimillion-dollar commercial mortgages or have been lost to foreclosure.

The $425 million loan on the Four Seasons Maui property, which is owned by billionaire Michael Dell’s investment firm, was transferred to special servicing in April after falling delinquent on payments, according to Trepp.com, which researches commercial mortgage-backed securities and commercial mortgages.”

The SFR median sales price for April 2010 was $634,969 compared to $646,584 in 2009, that was a 1.8% drop which was a lot lower than the 11.5% for April 2008 compared to April 2009 drop.  The condo median sales price for April 2010 saw an increase of 2.4% over April 2009.

The number of days on the market is decreasing another indicator the market is gaining momentum and strength. The number of days on the market for SFR was 59 in April 2010 and 82 in April 2009. That is a decrease of 28.8%. The number of days on the market for condos was 55 in April 2010 and 81 in April 2009. That is a decrease of 32.3%.

Hopefully we see types of numbers the rest of the year and we see the market continue to stabilize.

For April 2010 Vs. 2009 the number of Island wide home sales increased by 9.52%,  the median sales price decreased 15.45%

April 2010 Condos number of sales increased 114.3% and the median sales price increased 44.6%

Information on April 2010 sales on the island of Kauai was provided by Russell Tucker