September 13, 2010

Maui Housing Update of Real Estate Market

Maui is the second-largest of the Hawaiian islands and the third-most populated, with about 120,000 residents, just northwest of the Big Island. Kahului is the island’s largest town, and the island is popular with both residents, tourists and real estate investors, as Maui real estate tends to run quite high in price and can be seen as a good long-term investment.

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.

September 12, 2010

Kaanapali real estate housing market

The Kaanapali real estate market, found on the Valley Island of Maui, is a portion of the larger Lahaina real estate housing market. The Kaanapali housing market, along with the rest of the island and state’s markets, has been facing some contradictory signals during the most recent tracking period. For example, although home sales have been relatively static, condominiums sales have fallen off dramatically.  On the bright side, commercial real estate and foreclosures seem to be moving in a positive direction. According to an August 13, 2010 report from the Maui News, “awaii has broken its streak of more than three years of rising real estate foreclosure filings. Irvine, Calif.-based RealtyTrac reports that there were 930 foreclosure actions statewide in July, a 6 percent decline from the 990 in the same month last year. It was the first year-over-year drop for any month since May 2007, a string of 37 straight months. This report comes after RealtyTrac said last month that foreclosures in Honolulu increased 72 percent in the first half of the year compared to the first six months of 2009. July’s foreclosure count was the lowest for any month since 872 filings in November. The peak was 1,534 in December.”

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.”

September 9, 2010

Kauai Housing Update – real estate market

The island of Kauai is westernmost and oldest of the Hawaiian islands. It is known as the Garden Isle, and is home to a population of around 60,000. When the U.S. stock and housing markets began their slide and the country entered into a recession in 2008, Kauai real estate felt the effects personally as values plunged and a number of residents found themselves unable to pay for their homes and forced to turn them over as the number of foreclosures in Kauai rose.

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.

September 7, 2010

Kihei maui Real Estate Market Update

Kihei, an unincorporated town on the Hawaiian Maui island, is located on the shores of Maalaea Bay on the island’s western shores. It is estimated to be home to a population of around 20,000. A number of apartment and condominium complexes are found along the stretches of Kihei’s beaches, which extend for about seven miles along the ocean.

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.

September 7, 2010

Hawaii Kai real estate housing market

The Hawaii Kai real estate market, an upscale portion of Oahu’s housing market, remained relatively static year-over-year, despite some positive news in the commercial real estate sector. According to an August 10, 2010 article from the Associated Press, “The Honolulu Board of Realtors says Oahu’s existing housing market remained relatively stable in July. The board said Monday that 268 single-family homes traded hands last month, compared with 266 in July of last year. The median sales price for the July sales was $605,000, up 1.7 percent from the $595,000 posted the year before. Meanwhile, the number of condominiums sold in July fell 6.7 percent 320, and the median sales price for condos dropped 2.7 percent to $299,000. The board also said sales closed faster in July, with single-family homes listing for 39 days, down from 45 days, and condos down to 36 days from 56. Board President Brian Benton says Oahu’s market seems to be doing better than its counterparts on the mainland.”

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.”

August 30, 2010

Kahului real estate market

The Kahului real estate market, one of the largest components of the Maui housing market, saw another difficult month in July. Both the median price of a Kahului home for sale  and the number of properties sold declined in the most recent tracking period, perhaps a reflection of the expired federal tax credit. An August 7, 2010 article from the Honolulu Star Advertiser noted that “Home sales and prices were little changed on Maui last month, as activity eased away from the dramatically higher number of sales and more severe median price declines that occurred earlier this year. There were 61 single-family home sales in July, just two more than the 59 sales in the same month last year. The median price was $500,000, down 6 percent from $532,000 in the comparable period. For condominiums there were 69 July sales, an 11.5 percent decrease from 78 sales a year earlier. The median price was down 6.5 percent to $390,000 from $417,000…Year to date, the number of single-family home sales is up 37 percent, and the number of condo sales is up 52 percent. Year-to-date median prices are down 9 percent for single-family homes and are down 28 percent for condos. Some of the recent slowdown in sales activity might be due to the end of a federal stimulus program that provided a tax credit of $6,000 to $8,000 to buyers who signed home purchase contracts by April 30. Most of those sales have been completed.”

The dual decline in the number of properties sold and the average sales price of Kahului homes for sale was echoed in an August 6, 2010 article from the Pacific Business News. This piece stated that “Maui homes sales saw a slight increases in July, but the rest of the news wasn’t as good. The median price of homes there slipped, and both sales volume and prices fell for condos. The 61 single-family homes sold last month represented a 3 percent gain from the previous year. Condo sales dropped 12 percent, from 78 last June to 69 this past month. The median sales price for single-family homes and condos both dipped more than 6 percent. Home prices averaged $500,000 in July compared to $532,000 in 2009, and condo prices went from $417,000 to $390,000.”

August 27, 2010

Ko Olina real estate market

The Ko Olina real estate market, a predominately residential and vacation-oriented sector of the Oahu housing market, continues to face trouble, as home sales declined somewhat. The median sales price for the island market rose somewhat, but the boost was rather small considering the additional factor of the expired federal tax credit. An August 9, 2010 article from the Pacific Business News stated that “July home sales on Oahu were down slightly compared to the same month last year, according to the Honolulu Board of Realtors. A total of 268 single-family homes were sold last month, essentially flat when compared to the 266 homes sold during the same month last year. Condos, by contrast, saw a sizable drop, going from 320 units sold in July after a total of 343 units were sold during the same month last year, according to Realtor data. July’s decline was even greater when compared to June results. July’s totals for single-family home sales were off 8.5 percent, and condo sales were down 21 percent, Realtor data revealed. Sales prices for July were basically flat when compared to last year. The median price for single-family home sales was $605,000, up 1.7 percent from the selling price of $595,000 in July 2009. The median price for condos was $299,000, down 2.7 percent from the median price of $307,250 in July 2009, the board of Realtors reported. Single-family home prices were down 4.3 percent from June’s median price, while condo prices were down less than 1 percent during the same period.”

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.”

August 25, 2010

Waimea real estate market update big island hawaii

The Waimea housing market, a portion of the Big Island real estate market, remains soft in the most recent tracking periods, despite some signs of strength in the commercial sector. According to a July 16, 2010 report from Pacific Business News, “A lot of construction activity is going on at the Waiakea Village. A group that includes Michael Silva of Pahoa Village Café has taken over the commercial complex of the Waiakea Village property, which involves 16-plus buildings. The plan calls for converting part of the area to a restaurant row atmosphere with multiple restaurants, a grocery store, art gallery and other retail businesses. One of the first changes will be converting the Old Uncle Mickey’s into an upscale restaurant with a banquet room. Also, Paulo’s Italian restaurant in Pahoa will soon be opening in the old Topo Gigio location. The real estate development subsidiary of Safeway plans to build a shopping center on the 25.4 acres of state land by the old Hilo Airport. The property abuts Kanoelehua Avenue, Hualani Street and the main runway area of the Hilo International Airport. Plans call for 279,446 square feet of retail space anchored by a home-improvement center. The property was used by the military during World War II and has been vacant since 1947.”

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.”

August 25, 2010

Hawaii Housing real estate market update

The island state of Hawaii, with its beautiful beaches and tropical climate, is always near the top of the list for high real estate prices and large numbers of buyers interested in obtaining homes here. But the state was hit hard by the downturn in the U.S. housing market as investors began to doubt the value of owning real estate or property in a falling market. The Hawaii real estate market suffered universally as many mortgage-holders found themselves upside down on their mortgages, owing more money than their homes were even worth, and those who bought at high prices during the market’s boom suddenly saw the values of their investment crashing.

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%.

August 22, 2010

Kohala Coast real estate market update

The Kohala Coast real estate market, part of the larger Big Island real estate housing market, continues to face challenges heading into the second half of the fiscal year. Despite an increase in condo sales and an uptick in tourism activity, fewer Kohala Coast homes for sale were purchased and the median price for both categories declined. According to an August 10, 2010 report from Pacific Business News, “The Big Island of Hawaii saw eight more condominium sales this past July than in the same month last year, but saw drops in the volume of single-family home sales and median prices for both homes and condos during that time, according to the Hawaii Information Service. Last month’s 41 condo sales were 24 percent better than the same month last year, when 33 condos were sold. Single-family home sales dropped nearly 11 percent in July, going from 120 to 107. Both single-family homes and condos saw a slip in median prices this July. Homes sold at a median price of $244,500 — compared to last year’s $258,000 – while the median price for condos came in at $235,000 — $30,000 less than last July.”

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.”