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 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.”

April 7, 2010

2010 March Kauai Real Estate Update

For March 2010 Kauai’s number of sales has once again exceeded 2009 numbers, Buyers have become more aggressive knowing that the market has reached a low that we have not seen for a long time and also first time home buyers are taking advantage of the tax credit. For March 2010 Vs. 2009 the number of Island wide home sales increased by 4.35%,  the median sales price increased 3.34%

March 2010 Condos number of sales increased 172.7% and the median sales price increased 43.18%

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

February 6, 2010

January 2010 Kauai real estate update

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

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

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

January 7, 2010

December 2009 Big Island Real estate Market Update

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

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

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

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

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

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

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

August 22, 2009

Quick July market update for Oahu

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

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

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

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

July 18, 2009

Trump Tower Waikiki Lawsuit

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

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

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

June 19, 2009

Oahu Numbers in May Similar to April

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

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

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

January 16, 2008

Hawaii New Homes New home Developments

American Dream Realty can help you locate a new home from all Hawaii new home developments. Our specialty is helping buyers locating their dream Hawaii home. We’d love the opportunity to assist you with your Hawaii real estate needs. Call us and find out how we can help you locate a new home.
Below are different new home developments we can assist you with.

New Home Developments/Subdivisions in Hawaii Kai

Moana Kai - Choose from seven different types of home-styles, ranging from 1,237 sq.ft. to 1,729 sq.ft. of living area. Call Jeff Manson of American Dream Realty at (808) 792-7040

New Home Developments/Subdivisions in Honolulu

Capitol Place – Offers a blend of the modern and traditional. Apartments ranging from approximately 638 sq.ft. (1 Bed/1 Bath)to 1,500 sq.ft. (3 Bed/2 Bath) of living area plus parking. Call Jeff Manson of American Dream Realty at (808) 792-7040

The Hokua building offers all the convenience you would expect of an exclusive residential condominium, the amenities you’d expect to find in a fine resort. Available residences are 3 Bedrooms with approx living area of 2,220 sq ft to 4,315 sq ft. Call Jeff Manson of American Dream Realty at (808) 792-7040 (more…)

July 9, 2007

RE Hawaii – Hawaii FSBO Site

Found a very interesting site that services the Hawaii real estate market.  RE Hawaii appears to offer a way for Hawaii FSBO’s ( For Sale By Owners) to list their properties for sale.  It looks like they list Oahu real estate, Maui real estate, Kauai real estate and the big island of Hawaii.

They also list Hawaii houses for rent. I believe they also link to other Hawaii real estate brokers MLS searches as well. This site might gain popularity as the Hawai real estate market continues to tighten up.  Sellers that have bought a home in the last two years do not have very much equity  if any at all.

Time will tell whether or not this is going to be a substitute from a traditional broker.