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.”

November 23, 2008

Santa Cruz – East Bay Real Estate Markets

I was talking to a few real estate agent friends that I know from Santa Cruz county last week about the market in northern California. They informed me that the Santa Cruz real estate market is taking a hit like the rest of California. It was not as bad as cities in southern California like San Diego, but the prices last quarter fell dramatically because of the amount of foreclosures.

I know a few agents that work the East Bay real estate market in Berkeley, Pleasanton, Livermore and other surrounding areas. They pretty much reported the same thing. Agents in both areas did let me know that the amount of sales rose last month. Which is great news, if the amount of sales continue to rise that will reduce the supply of homes and hopefully stabilize the home prices.

Even though Hawaii is a different market than the mainland. It is good to watch the markets on the mainland to see what the over all real estate market and economy is doing.

October 23, 2008

Hawaii Foreclosures Rise 340 Percent

Up until the last few months Hawaii was in the bottom third of all states for the amount of foreclosures. Hawaii foreclosures rose a whopping 340% in September compared to the same time last year. They were up approximately 76% from last month and that was a huge increase as well compared to last year same time period.

I guess the economists from Bank of Hawaii and the presidents from the larger real estate firms here on the island of Oahu were wrong again. They were saying 2 years ago that the Hawaii real estate market would not be affected and would just level off. They were even saying that just a few months ago as well. Lets be real, the Hawaii real estate market is going to adjust downward just like any other market and has been doing so for the past 2 years.

Hawaii real estate is a lot more affordable compared to two years ago. If you are buying for long term it may not be a bad time to buy because you can not predict the exact bottom of the market. If you are buying and planning on selling in the next three years, I would suggest holding off a bit to see what the market is going to do. Now with all that said, there are some great deals if you are patient and you do your home. The rise in Hawaii foreclosures creates prices to soften and great buying opportunities. Not just foreclosures either, it forces the really motivated sellers to compete and lower their prices as well.

Feel free to contact me and myself or one of my partners can help you locate a property that makes sense for you.

November 28, 2007

Mississauga Real Estate Market Investments

After browsing real more real estate blogs from around the world I came across a Mississauga Ontario real estate website blog that shows that prices in some parts of the world are doing much better compared to the US.  As a matter of fact real estate prices have been consistently increasing for the past 12 years in the Toronto Ontario area of Canada.  You can see a Mississauga average price graph showing the price increases over this period of time and although there are seasonal (more…)

October 24, 2007

Boston Real Estate Not So Bad

Despite media reports of a slowing national real estate market, it seems that the Boston Real Estate market remains vibrant and strong, specifically Boston luxury real estate. In fact, Bostonà top neighborhoods of the Back Bay, Beacon Hill, Financial District and South End have all seen continuous growth during the past two years. You can read all about the Boston real estate market in The Bushari Team quarterly Boston Real Estate Market Report.

According to Elad Bushari of Gibson Sotheby International Realty in Boston, the strong Boston real estate market has partly to do with Boston booming financial industries. We are seeing a lot more people searching for lofts near the financial district. In fact, prices there have jumped 17 percent in the 3Q 2007 as compared to last year.

The Boston Real Estate Blog is another great source of information about Boston real estate, Boston Apartments and Boston Lofts.

October 19, 2007

Denver Real Estate Investments

I was reading blogs from around the real estate industry recently to find out where the market might be doing relatively better.
 
I found this Denver real estate blog that said that prices there have gone up every month since March. That was enough for me to call the author, Denver Realtor Larry Hotz, and ask him what was going on there.

“Spring and summer were really strong here in the better neighborhoods”, Larry Hotz. ” Of course, we have our foreclosure neighborhoods too where prices have gone down. But, my firm The Kentwood Company sells mainly luxury homes and our sales volume is up as well as average prices year-to-date.”

Larry said showings and sales of his listings have slowed down since Labor Day. But, there are no reliable statistics to show exactly how much yet.He believes sales will be softer but prices will be about flat though the rest of 2007. The Denver economy and employment continue to be strong supporting home prices. Over the summer Boeing and several other companies moved employees into Denver. Boeing moved over 600 employees from Huntington Beach, California to Littleton, a Denver suburb. If the Denver real estate trend continues, Larry believes the city might escape the lower prices of homes in other markets.

So, California looses 600 jobs to Denver. California prices are lower. Denver, at least so far, is about stable.