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 18, 2010

Kihei real estate market

Despite a trend of recovery and gradual growth, the Kihei real estate market, a component of the larger Maui housing market, continued to face some challenges, such as a new proposed property tax increase. According to a June 2, 2010 article from the Maui News, “Condominium owners turned out Tuesday to oppose legislation that would push thousands of units into a higher property tax classification, saying it would be an unfair burden and could drive more condominium units into foreclosure. While there are 26,701 condos in Maui County, 3,565 of those would be affected by the tax change, according to property tax officials. But that fraction would be hit hard – condo owners affected by the law change would have paid a cumulative $9.1 million in additional property taxes if the legislation had gone into effect this year. “That’s a lot of money to come out of one class of property owners,” said Dave DeLeon, government affairs director of the Realtors Association of Maui. “I think this is very unfair,” said condominium owner Steve Tenney. “It’s draconian.” The proposed legislation would require condo owners to pay taxes according to the “highest and best use” of their properties, as other landowners now do.”

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.”

July 15, 2010

Maui real estate housing market

The Maui real estate housing market showed strong signs of improvement in the month of May thanks to the expected economic recovery. According to a June 14, 2010 report from the Pacific Business News, “Sales of condominiums in Maui County doubled last month, while sales of single-family homes rose 35 percent. There were 104 condo units sold in May, including two on Molokai, which was 100 percent more than the 52 units that sold in May 2009, according to the Realtors Association of Maui. There were 81 single-family houses sold on Maui alone last month, a 35 percent increase compared to the 60 homes that sold on Maui, Lanai and Molokai during the same month last year.”

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.”

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.”

March 26, 2009

Moving to Maui

Moving to Maui
Are you planning on moving to Maui? Maui locals will tell you “Maui no ka oi” … Maui is best. Although many people think of Maui as a vacation or holiday destination, there’s something magical about this place that drives people from all over the world to move here. There’s truly a fascinating blend of opposites throughout Maui; from the large, sandy beaches, to the city, to the farms, to the mountain tops rising into the sky. There are even lush, tropical rain forest areas and some of the best whale watching can be found here. Moving to Maui is like moving to a completely different world.

Plan Ahead
Making a plan is important when you’re moving to Hawaii. When do you plan to move? Typically speaking, September or October is prime time to make your move. Travel expenses are normally cheaper around these times of years and you may even get breaks on food when you’re eating out (restaurants often run specials around the slower times).

Maui Weather
Life on Maui will vary according to where you decide to live. Where do you plan to live? There are many communities to choose from which offer their own special benefits. No matter where you choose to live, at least you know the weather is almost always friendly and welcoming. During the winter, the average temperature in Maui is 71 degrees and during the summer it’s usually about 78 degrees. Don’t panic if you hear tsunami sirens sounding off on Mondays. Monday is the day that they test them to ensure they’ll work in the event of the rare storms. (more…)

April 2, 2007

Maui Real Estate

Maui Real Estate  
Maui real estate is among the most coveted in the world. This island is famous for its lush beauty, pristine beaches and “Aloha” lifestyle. American Dream Realty can help you make a home on this island with a minimum of effort on your part. We listen to you, to what you need and want in a property, and we scour the island to find it. (more…)