August 18, 2010
Princeville real estate market update
The Princeville real estate market, a substantial portion of the Kauai real estate housing market, has been trending upwards in recent months following the bursting of the local bubble. Home sales on the Garden Isle increased substantially over the same time period last year, although it’s unclear how much of the market was artificially boosted by the expiring federal tax credit. According to a July 17, 2010 report from the Garden Island, “The housing bubble on Kaua‘i has popped, but not quite like it did in places such as Las Vegas or Phoenix where “they just ate it,” TZ Economics Principal Dr. Paul Brewbaker said at Thursday’s Kaua‘i Board of Realtors general membership meeting and educational forum…Kaua‘i experienced a burst more comparable to California than O‘ahu, according to Brewbaker. The island “does not seem to have an inventory overhang like most distressed Mainland markets,” he said. Home sales increased around 76 percent last month on Kaua‘i compared to June 2009, according to Multiple Listing Service. Meanwhile, median home values fell more than 1 percent, the statistics say…In June, there were 37 residential sales as opposed to 21 last year, according to MLS statistics. And the median value of homes last month was $405,000 compared to $410,000 in June 2009. Similar statistics were reported for the number of sales during the second quarter, according to MLS. A more than 71 percent increase in sales was recorded in 2010 compared to last year and median home values slipped some 10 percent.”
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.”
August 15, 2010
Mililani real estate market update
The positive news for Mililani homes for sale was somewhat dampened by simultaneous news of sharply increased rates of foreclosure. Higher rates of foreclosures on the island of Oahu, which stand in stark contrast to the trends seen in the rest of the nation, are a testament to the continued effect of the economic recession on the islands. According to a July 29, 2010 article from the Honolulu Star Advertiser, “Home foreclosures in Honolulu shot up more than 70 percent during the first half of this year even as foreclosure rates began abating in the hardest-hit cities on the mainland, according to report released today. A total of 2,784 Honolulu homeowners received a foreclosure filing between January and the end of June, up 72.3 percent from the first half of 2009, according to the report from real estate research firm RealtyTrac. There was one foreclosure filing for every 121 homes in Honolulu, the 112th highest ratio out of 204 cities surveyed by RealtyTrac…Nationally, foreclosure rates rose in 75 percent of the 204 cities surveyed. However, in nine of the 10 metro areas with the highest foreclosure rates — including Las Vegas and several cities in Southern California — the foreclosure rate dropped. Las Vegas, which led the nation with one foreclosure for every 15 homes, saw its overall foreclosure rate drop by 9 percent during the first half of the year from the same period in 2009. In Riverside, Calif., where one out of 23 homes is in foreclosure, the rate dropped by 23 percent.”
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.”
August 12, 2010
Kahala real estate market update
The Kahala real estate market, part of the larger Oahu and Honolulu housing markets, faced mixed signals in the most recent tracking periods, with some experts emphasizing problematic indicators and others pointing towards more consistent performance. According to an August 9, 2010 article from Pacific Business News, “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. Waikiki 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.”
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.”
August 4, 2010
Hilo housing real estate market
The Hilo real estate market, a subsidiary of the Big island housing market, saw mixed signs in the month of June. Although the number of home sales increased dramatically in the most recent tracking period, the median sales price crashed over the same time. According to a July 10, 2010 report from the Honolulu Star Advertiser, “Sales of homes on the Big Island and Kauai were strong in June, but prices were weak. The number of sales climbed more than 50 percent on both islands, but median prices were flat or down, according to sales data compiled by Hawaii Information Service and released yesterday. The biggest sales gain occurred in the Big Island’s condominium market, where transactions soared 89 percent to 53 last month from 28 in the same month last year. The median price was down 30 percent to $210,000 from $299,450. The median is a point at which half the sales are for more and half for less, which means the figure can be swayed by the mix of homes sold, especially when the number of sales involved is relatively small. Single-family home sales on the Big Island rose 56 percent to 161 last month from 103 a year earlier. The median price was up 2 percent to $285,000 from $280,000.”
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.”
July 30, 2010
Makena real estate housing market
The Makena housing market, along with the rest of the Maui real estate market, began to show signs of improvement after several consecutive months of severe losses and declines. According to a July 8, 2010 report from the Lahaina News, “While median prices may have slipped slightly, the report indicated that average prices for both homes and condominiums are following upward trends, with condo sales in particular steadily increasing, although median prices have declined. And while the total number of sales in Maui County may fall into the less-than-desirable range for sellers and their agents, it is still up nearly 72 percent compared to sales in May of 2009—certainly an encouraging sign. Residential sales in the first five months of the year “held strong,” with 81 homes sold and 104 condo units sold. May’s median sale prices were $442,000 for homes, $412,500 for condos and $547,500 for vacant lots of land, according to the report. Best of all, and perhaps most appealing to potential homebuyers, the report said, “Interest rates are remaining near historic record lows, which may help motivate would-be buyers to go ahead and buy.” The RAM report also noted that, as of May 2010, land sales had risen to 16 lots. This is not only welcome news to sellers and buyers, but also to land developers, architects, contractors and construction workers, who have also felt the pinch of the vulnerable housing market.”
The report by Sarah Ruppenthal went on to note that brokers are pursuing creative avenues to sell Makena homes for sale. It stated that “Despite the odds stacked against them, many developers have found creative ways to jumpstart Maui’s weakened housing and construction industries. For instance, Pe‘ahi Farms, which sits atop 130-foot cliffs along the picturesque North Shore coastline, has 15 vacant farm estate lots for sale. Last week, Pe‘ahi Farms’ project owners announced a sales incentive plan extended to potential homebuilders throughout 2010. The plan, which is designed “to get the real estate market ball rolling,” offers a significant price reduction that will allow up to six homeowners a substantial lot discount if they are prepared to start the building process. The SMA process is complete for the entire project; therefore, project owners said, the lots are ready-to-build.”
July 28, 2010
Lahaina housing real estate market
The Lahaina real estate market, a major component of the larger Maui housing market, is showing signs of a possible recovery despite a slower than expected rate of recovery nationwide. A July 13, 2010 report from Hawaii News Now noted that “Buyers closed on 77 home sales and 105 condo sales in June, amid some indications of a modest pricing rebound. The median home price, $499,000, was $57,000 more than May and $4,000 higher even than year-ago prices. There were 25 home sales on the central plain, 10 in Kihei, seven in Pukalani, seven in Lahaina, and the rest scattered around Maui. (Neither Molokai nor Lanai saw any home sales go to closing in June.) The condo median was $430,000, up $20,000 from May but still $39,000 below year-ago levels. There was a wide variety of condo prices, with 25 condos selling on the Kaanapali Coast, most for more than $800,000, while 34 sold in Kihei, most for less than $300,000. “The market is starting to turn,” said Terry Tolman, chief staff executive for the Realtors Association of Maui, in a report to members. “Interest rates are remaining near historic lows.” Tolman sees the market as strong considering that short sales and bank sales are still moving through the pipeline – these can bring prices down – but warns that unrealistic sellers who price their properties too high are being ignored by prospective buyers. This wraps up the June round of home sales reports. Earlier reports from the Honolulu Board of Realtors and Hawaii Information Service (Kauai and the Big Island) also showed a resurgent housing market with more resilient home price values than on the mainland.”
The relative strength of Maui homes for sale is indicative of a larger trend in the Hawaii housing market. Along with the rest of the Valley Island and the Aloha State, the Lahaina real estate market remained stronger than the rest of the country, despite relatively high rates of foreclosure. It is unclear, however, exactly how much of the strength of the recovery is a result of the recently expired federal homebuyers tax credit.
July 26, 2010
Kailua real estate housing market
The Kailua housing market, part of the larger Oahu real estate market, rallied in the most recent tracking period despite possible indications that the market is slowing. According to a July 7, 2010 report from Hawaii News Now, “The first of the home sales reports from June show sellers are getting more of what they ask for and waiting fewer days to find a buyer. Realtors closed on 285 home sales on Oahu in June, for a median price of $575,000, compared to 263 closings a year ago for a median price of $570,000… There were 396 condo closings for a median $300,000, compared to 287 sales for a median price of $310,000 a year ago. The median is the point at which half the sales are for less and half for more. The median prices gives a sense of the market that the average price can fail to give if one or two really expensive or really cheap sales skew the numbers…Factors driving the market include expiration of federal home credit, which is thought to have taken some drive out of the market, and the lowest mortgage rates in half a century, the effect of which has been restricted, real estate agents say, by tight credit at local banks.”
The average purchase price of a Kailua home for sale barely increased in the month of June, suggesting that the market may be slowing. According to a July 7, 2010 report from the Honolulu Star Advertiser, “The median price for previously owned single-family homes sold on Oahu last month eked out a 0.9 percent gain to $575,000 from $570,000 in the same month last year, according to figures released today by the Honolulu Board of Realtors. The slight rise came on sales volume that was up 8.4 percent to 285 transactions from 263 in the same period. Condominium sales soared 38 percent to 396 in June from 287 a year earlier, but the median price was down 3.2 percent to $300,000 from $310,000.” There is also the possibility that both home sales and the median sales price may have been artificially altered by the federal tax credit that recently expired.
July 25, 2010
Hanalei housing real estate market
The Hanalei real estate market, part of the larger Kauai housing market and Hawaii real estate market, continued to face serious issues with foreclosures and low prices despite an uptick in sales figures. According to a July 15, 2010 report from the Honolulu Star Advertiser, “Foreclosure proceedings against Hawaii properties continued to rise in June from the same month last year, according to the latest industry report. There were 1,000 properties statewide in some stage of foreclosure last month, up 42 percent from a year earlier, according to data from real estate research firm RealtyTrac. Despite the increase, the volume was the second-lowest for any month this year after 972 filings in February, and was the second-lowest rate of increase on a year-over-year basis after a 29 percent rise in May…Compared with other states, Hawaii foreclosure rate of one filing per 513 households was 15th worst, meaning 35 other states had lower rates, according to California-based RealtyTrac. The national rate was one filing for every 411 households. Nationally, the total number of foreclosure filings declined 7 percent from June 2009. Nevada had the worst rate at one filing per 88 households, and Vermont had the best rate at one filing per 26,051 households. By county in Hawaii, Honolulu had the most filings at 342, but it had the lowest rate, at one filing for every 986 households. Kauai had the next-lowest rate at one filing per 505 households, based on 59 total filings.”
The median purchase price of a Hanalei home for sale declined in the month of June, even as the rate of condo and home sales increased significantly. According to a July 9, 2010 report from Pacific Business News, “Kauai home and condominium sales saw big year-over-year increases in June as median prices fell. The 37 single-family homes sold last month were 76 percent more than the 21 sold a year ago. Condo sales rose 62.5 percent, from 16 last year to 26 this year. But the median sales price for single-family homes dipped slightly, from $410,000 in 2009 to $405,000 this year. Median condo prices fell even more, down 10.4 percent from $385,000 to $345,000.”
July 22, 2010
Kaneohe housing real estate market
The Kaneohe real estate market, along with the rest of the larger Oahu housing market, continued to edge upwards in the month of June despite signs that the recovery may be slowing. According to a July 7, 2010 report from Pacific Business News, “The number of Oahu home and condominium sales increased in June when compared to the same month last year, but median prices for condos were down in June. The number of single-family homes sold on Oahu was up 8.4 percent in June, from 263 to 285, according to figures released Wednesday by the Honolulu Board of Realtors. The median price for those single-family homes sold last month was up 0.9 percent to $575,000 from $570,000 compared to the same month last year, according to HBR data. Condominium sales saw the most dramatic increase — up 38 percent to 396 compared to the same month last year. But the median price was 3.2 percent lower than a year ago, settling at $300,000. “The June statistics show that Honolulu real estate market continues to recover,” said Brian Benton, president of the Honolulu Board of Realtors. “Median prices for both single-family homes and condominiums are higher than this time last year, and pending sales for single-family homes are also up and should be reflected in the sales numbers over the next couple of months.” Sales in June also closed faster this year than they did last year, with single-family homes listing for 32 days, down from 48, and condominiums listing for 31 days, down from 47.”
However, despite the positive trend in the number of sales, the median price of a Kaneohe home for sale barely increased from 2009 to 2010. The average sales price increased by less than one percent between June 2009 and June 2010. The number edged up from about $570,000 to $575,000 according to statistics gathered from the Honolulu Board of Realtors. Condominiums actually saw a decrease in median price, dropping from $310,000 to $300,000, or about 3.2 percent. Sales volume for condominiums increased from 287 last year to 396, outpacing single-family homes, which saw an increase of about ten percent.
July 20, 2010
Honolulu housing real estate market
The Honolulu real estate market, the primary sector of the Hawaii housing market, showed continued but possibly slowing signs of growth in the most recent tracking period. According to a July 8, 2010 report from the Honolulu Star Advertiser, “A recovery for Oahu home prices still looks hesitant six months into the year, as the median sale price for previously owned homes in June rose not quite 1 percent. Single-family homes sold for a median $575,000 last month, up 0.9 percent from $570,000 in the same month last year, according to data from the Honolulu Board of Realtors. The slight gain followed a 12 percent jump in May, which in turn was preceded by a 6 percent dip in April. For the first half of the year, the median sale price for Oahu homes is up 2.6 percent to $585,000 based on about 1,500 sales. The number of sales is up 32.5 percent year to date, but was up only 8.4 percent in June at 285 sales compared with 263 in the same month last year. Even if they are mostly small and somewhat inconsistent, transaction and price gains to date reinforce that the single-family home market is still on pace to reverse two years of price declines.”
A July 8, 2010 report from the Associated Press maintained a slightly more positive tone and did not mention a slowing pace of recovery regarding the figures available for June. It stated that “Honolulu Board of Realtors President Brian Benton says the latest sales figures for existing housing show Oahu real estate market continues to recover. The board reported Wednesday that June saw 285 single-family homes trade hands, an 8.4 percent boost over June 2009. It says the 396 condominiums sold last month represented a 38 percent jump. The median price paid for homes last month was $575,000, compared with $570,000 in June of last year. At the same time, the median price for condos dropped 3.2 percent to $300,000. The board also reports sales closed faster in June with single-family homes listing for 32 days, down from 48 days, and condominiums down to 31 days from 47.”
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