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.”

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.”

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%.

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.”

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.”

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.”

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.”

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.”

The increased number of Kona homes for sale that were purchased in the month of June may have been boosted by a decrease in bankruptcies. According to a July 12, 2010 article from Pacific Business News, “Hawaii’s initial unemployment claims decreased by 6.3 percent in the past week. The Department of Business, Economic Development and Tourism released a report Thursday showing that a total of 2,699 claims were filed statewide in the past week, compared to 2,879 during the same week in 2009. Oahu topped the state with 69 new claims filed, bringing its total to 1,562 so far this week, an increase of 4.6 percent compared to last year…Maui and the Big Island of Hawaii both saw decreases in filings for the week. Maui was down to 370 claims last week compared to 547 claims filed during the same week last year, a decrease of 32.4 percent. The Big Island had 103 fewer claims this week than it had a year ago, bringing its total for the week to 500, a decrease of 17.1 percent from the same week last year.”

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.”

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.

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.

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.”

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.

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.”

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.”

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.”

Poipu real estate condos for sale should also begin to benefit from a gradually recovering job market, which should in turn boost the overall economy of Hawaii. According to a June 11, 2010 report from Pacific Business News, “While Hawaii’s four counties will begin to see an economic recovery this year, real job growth won’t return until 2011, according to a new report. After suffering cumulative job losses of as much as 11 percent since 2007, Maui, Hawaii and Kauai counties will see smaller losses this year before registering gains of more than 1 percent in payroll jobs in 2011, according to the report by the University of Hawaii Economic Research Organization. Oahu, which saw smaller losses, will follow the same trend, with relatively flat growth this year followed by a gain of less than 1 percent in 2011. The Neighbor Islands suffered the largest losses in the visitor industry over the past two years, accounting for many of the jobs lost. However, all three counties should see growth in visitor arrivals ranging from 4.7 percent on the Big Island to 6.4 percent on Kauai to 7.4 percent on Maui, the report said. Despite that, visitor days for the Neighbor Islands will lag some 7 percent to 8 percent behind their peak values by 2012, while Oahu will rise to within a few percentage points of its 2007 peak values.”

Although the improvement amongst Waikiki condos for sale is partially driven by the federal tax credit, the market as a whole seems to be looking up. The article went on to state that: “There were 1,183 sales of single-family homes during the first five months of the year, which was a 40 percent gain over the same period in 2009. Condo sales totaled 1,605 during the January-May period, a 47.5 percent gain over 2009. Year-to-date prices were also up slightly. The median price of a single-family home for the first five months of the year was $585,000, a 3 percent increase over the same period in 2009, while the year-to-date median price of a condo was $305,000, a 1.5 percent gain over the same period in 2009.”

One particular example of Waikiki real estate faced a repossession and lawsuit over a property dispute. According to a June 25, 2010 report from the Honolulu Star Advertiser, “An affiliate of France’s second-largest banking firm, Groupe BPCE, has assumed ownership of the Waikiki Trade Center office tower at 2255 Kuhio Ave. The BPCE subsidiary, Natixis Real Estate Capital Inc., repossessed the property on Monday in lieu of foreclosure. Natixis acquired the property from California-based investors doing business as Waikiki Trade Center Investors LLC, which paid more than $30 million in 2006 for the 24-story tower on leasehold land at the corner of Seaside and Kuhio avenues.”

The Oahu foreclosure market, especially in the commercial sector, continued to face difficulty despite the perceived recovery of the rest of the real estate market. According to a June 18, 2010 article also from Pacific Business News, “The Four Seasons Resort Maui in Wailea, which serves as collateral for one of the largest delinquent loans in Hawaii, got a bit of more bad news this week when a portion of the loan was assigned an appraisal reduction of 25 percent. The Maui resort tops a list of more than a dozen hotel, industrial, office and retail properties that have defaulted on multimillion-dollar commercial mortgages or have been lost to foreclosure. The $425 million loan on the Four Seasons Maui property, which is owned by billionaire Michael Dell’s investment firm, was transferred to special servicing in April after falling delinquent on payments, according to Trepp.com, which researches commercial mortgage-backed securities and commercial mortgages.”

The economy of the island of Oahu seems to be gradually recovering as well, which should help boost the already rising numbers in the Oahu housing market. A June 21, 2010 report from the Associated Press found that “Personal income in Hawaii has grown at the sixth-fastest rate in the country through the first quarter of this year. The U.S. Bureau of Economic Analysis reports Hawaii residents’ cumulative personal income increased by 1.35 percent in the first quarter compared to the previous quarter. Military earnings jumped the most, at 0.37 percent. Retail trade, construction and federal civilian earnings all went up 0.13 percent. The industry with the largest earnings decrease was real estate, at a minus 0.05 percent.”

However, delinquent loans, including foreclosed properties and short sales, continued to be a drag on Big Island homes for sale and other sectors of the local housing market. According to a June 18, 2010 report by Janis L. Magin of Pacific Business News, “Sometimes it can take several months for a property to drop off the list after the owner has settled with the lender, but Bratton said he has seen more Hawaii properties turn up on the lists of delinquent loans. Several Neighbor Island shopping centers, including the Kings’ Shops at Waikoloa on the Big Island, Coconut Marketplace on Kauai, Coconut Grove in Kailua-Kona and the Kona International Market, also turned up on Trepp’s list of distressed loans.”

However, one prime example of Kauai real estate – not a Kauai home for sale but a large mixed-use project, continues to move forward. A June 11, 2010 report from the Pacific Business News by Jon Letman noted that “Despite an economic downturn lasting three years, Kauai’s largest real estate development continues to move forward, transforming Kauai’s South Shore. Kukuiula, a 1,010-acre project spearheaded by the Kukuiula Development Co. Hawaii LLC, a collaboration between DMB Associates Inc. and A&B Properties Inc., combines luxury resort residences, a 90,000-square-foot retail village, an 18-hole Tom Weiskopf golf course, clubhouse, spa and cottage-style visitor accommodations. In 2008 and 2009, new roads, a congestion-reducing traffic roundabout, beachside public parking and the Kukuiula Village retail center all came online, proving to skeptics that Kukuiula Development Co. and its partners had the staying power to survive the economic downturn. By the end of last year, the first golf holes, dotted with dozens of newly planted mature coconut palms, could be seen from the Ala Kalanikaumaka bypass built for the project.”

The report on the health of the Hawaii housing market went on to analyze condominium sales and median prices. It noted that “Condo sales on Oahu soared 35.5 percent in May to 355 units sold, up from 262 units sold in 2009. The median price of a condo rose 4 percent to $312,500, up from $300,000 in May of 2009. ‘May’s sales figures and median prices are certainly encouraging for Honolulu’s real estate industry’ board President Brian Benton said in a prepared statement. ‘The pent up demand for residential properties are now being met with homes and condos being priced right for first-time homebuyers, those wanting to trade up to a larger home or individuals wanting to purchase investment property.’”

The delinquent home market, especially Hawaii foreclosures, continued to hound properties in the Aloha State. According to a June 18, 2010 article from the Pacific Business News, “The Maui resort tops a list of more than a dozen hotel, industrial, office and retail properties that have defaulted on multimillion-dollar commercial mortgages or have been lost to foreclosure.

The $425 million loan on the Four Seasons Maui property, which is owned by billionaire Michael Dell’s investment firm, was transferred to special servicing in April after falling delinquent on payments, according to Trepp.com, which researches commercial mortgage-backed securities and commercial mortgages.”

The SFR median sales price for April 2010 was $634,969 compared to $646,584 in 2009, that was a 1.8% drop which was a lot lower than the 11.5% for April 2008 compared to April 2009 drop.  The condo median sales price for April 2010 saw an increase of 2.4% over April 2009.

The number of days on the market is decreasing another indicator the market is gaining momentum and strength. The number of days on the market for SFR was 59 in April 2010 and 82 in April 2009. That is a decrease of 28.8%. The number of days on the market for condos was 55 in April 2010 and 81 in April 2009. That is a decrease of 32.3%.

Hopefully we see types of numbers the rest of the year and we see the market continue to stabilize.

For April 2010 Vs. 2009 the number of Island wide home sales increased by 9.52%,  the median sales price decreased 15.45%

April 2010 Condos number of sales increased 114.3% and the median sales price increased 44.6%

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

The Kailua-Kona market for condo sales increased again this month and saw a 93% improvement from Mar ‘09, while the median price continued to slide and  dropped 21% for the month.  The Kohala Coast is also up again this month and sales increased 143% from same month last year.  But, the median price is also up by 51%, which may an indication that more investors are purchasing higher-end condos.  The entire Big Island condo sales doubled to just over 100% from Mar ‘09 as the median prices continue their decline down another 6.7%.

Current Market Conditions as of Apr 6, 2010… There are 577 Single Family Homes on the market for the Kona/Kohala Coast, which is an decrease from last month’s 603 active listings.  It’s too soon to tell what the trend is, but as market supply dries up, the median prices will stabilize and may even go back up.   There are 140 homes in escrow, which is up from last month of 120 and 49 homes sold… 22 more than last month.  At the current buying rate, we have a 11.7 month supply of homes, which is half of last month’s 22.3 month supply.

Of the 577 Single Family Homes on the market, 39 are Foreclosure Listings and 100 are Short Sale Listings.

For Kona/Kohala Coast Condos, there are currently 546 on the market for sale, down from last month of 561.  There are 117 in escrow, up from 108 last month and 44 sales, up from 35 last month.  We have a 12 month supply of inventory, which is a decrease from last month’s 16 month supply.

We receive a lot inquiries from folks asking when the market bottom out.  And while we can’t predict the future, we’re seeing increased buying activity, which reduces the market supply of homes and condos.  A 6 month supply of homes/condos is commonly thought of as a balanced market.

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

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

The Kailua-Kona market for condo sales saw a 200% in Feb ‘10 and the median price dropped 23% for the month.  On the Kohala Coast, sales are up 175% from same month last and median price is down 68%.  For the Big Island, condo sales are up 200% and the median price is down 39%.

Current Market Conditions as of Mar 5, 2010… There are 603 Single Family Homes on the market for the Kona/Kohala Coast, which is an increase from last month’s 591 active listings, 120 homes in escrow, which is up from last month of 117 and 27 homes sold… 5 less than last month.  At the current buying rate, we have a 22.3 month supply of homes, which is more than last month’s 17.9 month supply.

Of the 603 Single Family Homes on the market, 29 are Foreclosure Listings and 115 are Short Sale Listings.  A slight increase from January.

For Kona/Kohala Coast Condos, there are currently 561 on the market for sale, down from last month of 568.  There are 108 in escrow, up from 91 last month and 35 sales, up from 25 last month.  We have a 16 month supply of inventory, which is a decrease from last month’s 23 month supply.

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

February 2010 Condos number of sales increased 9% and the median sales price increased 7.9%

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

The Kohala Coast condo sales increased 500% in Jan ‘10, although that number is based upon 6 total sales. The median price dropped 52% for the month.  The condo market in Kailua-Kona saw sales of condos increase 73% for the month and the median price declined 4%.  The condo sales are improving due to more buyers using cash for the purchase and/or using a home equity line of credit.  Many lenders are requiring 30-35% down payment on vacation condos, since they carry more risk of mortgage default.

Current Market Conditions as of Feb 5, 2010… There are 591 Single Family Homes on the market for the Kona/Kohala Coast, which is an increase from last month’s 577 active listings, 117 homes in escrow, which is up from last month of 93 and 33 homes sold… 8 less than last month.  At the current buying rate, we have a 17.9 month supply of homes, which is more than last month’s 12.8 month supply.

Of the 591 Single Family Homes on the market, 23 are Foreclosure Listings and 109 are Short Sale Listings.

For Kona/Kohala Coast Condos, there are currently 568 on the market for sale, down from last month of 577.  There are 91 in escrow, up from 63 last month and 25 sales.  We have a 23 month supply of inventory, which is a decrease from last month’s 18 month supply.

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

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.

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.

For condos, we see median sale prices increase for Hilo, but sales dropped about 50%. The Kohala Coast reported a 75% increase in condo sales compared to Nov ‘08, while Kailua-Kona was almost unchanged. The next four months will be a busy season and we’re seeing the first signs of visitors sizing up the market, since the prices are near 2002-2003 levels.

Current Market Conditions as of Dec 11, 2009… There are 603 Single Family Homes on the market for the Kona/Kohala Coast, which is a increase from last month’s 563 active listings, 92 homes in escrow, which is down from last month of 118 and 53 homes sold… 8 more than last month. At the current buying rate, we have a 11.4 month supply of homes, which is less than last month’s 12.5 month supply.

Of the 603 Single Family Homes on the market, 26 are Foreclosure Listings and 118 are Short Sale Listings.

For Kona/Kohala Coast Condos, there are currently 609 on the market for sale, 65 in escrow, up from 58 last month and 21 sales. We have a 29 month supply of inventory, which is an increase from last month’s 25.5 month supply. The financing for vacation condos has stricter guidelines and lenders are requiring larger down payments in the neighborhood of 30%.

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

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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.

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.”

There were 293 Oahu condo properties that sold in the month of June 2009 compared to 355 Oahu condo properties that sold in the month of June 2008. That was a decrease in the number of sales by 17.5%. That was not great news. Condos do usually lag behind single family homes after having a down market. Hopefully we will see that percentage start to shrink as time goes on.

Fortunately Hawaii properties have not been hit as hard as some mainland areas like California or Florida. Some of those markets have seen prices go down by as much as 60% from there highs. These numbers are not great, but they are somewhat encouraging. Hawaii definitely has been going through a natural market price adjustment. It could not keep going up at the rate we were without a pull back.

I will continue to post numbers each month going forward through the rest of the year.

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.

We are seeing the activity pick up here on Oahu as far as offers and properties being put into escrow. These are all signs that the bottom may be near. Inventory has to shrink before prices can stabilize. It appears that is what may be happening.

There is some good news for sellers. It you have your property priced correctly with the recent increase in activity, you have a better chance of getting your home sold. I am hearing the same thing from real estate agents on the Big Island Hawaii, Kauai and Maui. Karen on Maui has informed me that investors are looking at Maui homes and condos again as investments. Russell on Kauai reports that they are looking for Kauai forecloseres or just a really good deal. He says there are plenty of them on Kauai at the moment.Looks like the confidence is definitely picking up and some buyers are starting to feel like this is a great time to get a piece of paradise.

Jim Cramer from Mad Money has been suggesting right now is a great time to start getting into real estate as an investment.

Here are some interesting numbers from April:
April of 2009 had approximately 184 SFR sell compared to 255 sell in April of 2008. The average sells price in 2008 was $731,361 compared to $640,000 in April of 2009. That is about a 13% decrease in price.

On average buyers have been able to pick up properties for 96% of list price for SFR and 95% of list price for condos.

Nobody can predict the exact bottom of the market, but with the decease in both the prices and interest rates it is definitely a good time to consider getting a piece of paradise.

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.

Driving on Maui
If you’re moving to Maui and plan on driving, you should know that honking your horn in traffic is very much frowned upon. Here are a couple of terms that you’ll need to get used to; “mauka” means “toward the mountain” and “makai” means toward the ocean. These words are usually used in place of north or south. If you’re driving down a road that is close to the beach, don’t assume you can swerve around an obstacle by making use of the sand. Although it may appear safe, many unaware drivers end up stuck in the sand!

Island Fever
While moving to Maui may be exciting and a step into your new life, some people find it difficult to adapt. Have you heard of island fever? Not jungle fever, but island fever? There is such a thing, and it’s something that sometimes happen to newcomers. If you’re used to living on the mainland then you you’re used to having pretty much everything you could want within reach. You can jump in your car and drive to the next town or state to visit family or get something that isn’t immediately available in your area. When you live in Maui that isn’t possible, though. Island fever is basically that feeling of being isolated on an island creeping up inside you. Some people go through this and some don’t, so it’s something to be aware of.

If you decide to relocate to Maui you may want to get several moving quotes to make sure you are getting the best possible price. It is also a good thing to check out references as well. Maui is truly a great place to call home.

Hawai’I Kai Condominiums
Hawaii Kai is found at the very southeastern end of Oahu is one of the most highly priced areas for condominiums on the island. You can save a great deal by buying one now, though. The median price of a condominium in Hawai’I Kai is almost $100,000 less than you would have paid for one in 2007. There are also more condo’s to choose from. There are over 100 listed as available, while just a year ago there were less than 90.

Single Family Homes in Honolulu
If you want to own housing in Hawaii that sits in the heart of the oldest residential areas found on Oahu, then look to Honolulu. Here, too, you can find some amazing deals on a new home. Single family homes in Oahu have been running about $690,000. While that may sound high, it’s more than 11 percent less than what it would have cost you before. If you want to buy a home here, you may want to act as quickly as possible for your situation. The availability for Honolulu single family homes has been decreasing.

As you can see, there are opportunities jumping at you from all over Hawaii. If you’re waiting to see how much lower the prices may go, you may end up with even a better deal. On the other hand, you may end up missing the deal of a lifetime because you waited too long. That’s a play of the cards, and something only you can decide. But housing in Hawaii is sure to make a strong rebound; wouldn’t it be nice to own a piece of paradise?

On Oahu there were 126 SFR properties sold for an average of 91 days on the market. They sold on average 96% of list price. Average list price was $666,772 and the average sales price was $632,262. The average house size was 4 bedroom, 2.5 bath with 1,674 living SqFt and a lot size of 6,754.

For the same month the year before there were 142 SFR properties sold for an average of 77 days on the market. They sold on average 97% of list price as well. Island wide the average sales price was $770,535.

It appears that the average SFR sales price island wide for the same month has declined approximately 18%. Number of sales was down approximately 12% from 2008.

Search all Honolulu real estate on Jeff Manson’s Hawaii real estate search.

Island wide there were 116 SFR properties sold for an average of 95 days on the market. They sold on average 96% of list price. Average list price was $801,845 and the average sales price was $747,120. The average house size was 4 bedroom, 2.5 bath with 1,796 living SqFt and a lot size of 8,081.

The same month the year before there were 223 SFR properties sold for an average of 80 days on the market. They sold on average 96% of list price as well. Island wide the average sales price was $952,277.

It appears that the average SFR sales price island wide for the same month has declined approximately 22%. Number of sales was down approximately 48% from 2008.

The condo sales were down approximately 60% and the amount of Hawaii foreclosures continue to increase. With the interest rates at all time low there should be plenty of great buys for the bargain hunters.

December 2008 Residential Resale Statistics for Oahu

Single Family Home Resale

December 2008 194 $ 626,500
November 2008 $ 594,500 up 5.4%
December 2007 240 dn 19.2% $ 610,000 up 2.7%

Condominium Resales

December 2008 243 $ 305,000
November 2008 $ 316,200 dn 3.5%
December 2007 353 dn 31.2% $ 320,000 dn 4.7%

December number of sales: 194 single-family homes – 294 condominiums was a decrease of 19.2 percent for single family homes and 31.2 percent for condominiums, compared to 2007 same month. 2008 total for single-family home sales were 2,741 and 3,933 for condominium sales was a decrease of 24.4 percent and 28.5 percent compared to 2007. Oahu median sales price in 2008 were $624,000 for single family homes and $325,000 for condos with a decrease of 3.0 percent for single family and no change in price for condominiums.

Oahu’s annual resale figures for 2008.
They are:
Annual 2008 Residential Resale Statistics for Oahu

Single Family Home Resales
Year / # Sales / Price
2008 2,741 $ 624,000
2007 3,627 dn 26.1% $ 643,500 dn 3.0%

Condominium Resales
Year / # Sales / Price
2008 3,933 $ 325,000
2007 5,499 $ 325,000

*Median price means half the prices were above and half below the given price.

GEOGRAPHIC AREA / SINGLE FAMILY HOME / CONDOMINIUMS
Honolulu real estate (Town) $ 722,500 $ 320,000
Diamond Head real estate $ 936,000 $ 437,500
Hawaii Kai real estate $ 850,000 $ 539,000
Kailua real estate $ 774,500 $ 415,000
Kaneohe real estate $ 663,800 $ 400,000
North Shore real estate $ 797,500 $ 360,500
Central Oahu real estate $ 580,000 $ 307,500
Leeward Coast real estate $ 380,000 $ 154,000
Ewa Plain real estate $ 465,000 $ 299,000
Makakilo real estate $ 560,000 $ 299,000
Waipahu real estate $ 550,000 $ 280,000
Pearl City real estate $ 627,300 $ 302,900

Obama greeting crowd

Obama knows how to work a crowd, that is for sure. Pretty nice guy

Todays Photos:

Justin gets a second hand shake with President Obama

Justins first Hand shake on Christmas Eve

Justin mentioned by local paper

Obama enjoying all the aloha

Grandma Ann got to shake his hand this time and also took the photos

Obama Approaching Gallery at Mid Pacific Country Club

On Christmas Eve our nanny Nina was bringing our kids home from the park and was overwhelmed by a motor cade transporting President elect Obama to nearby Mid Pacific Country Club.

Obama Wishing Local Lanikai Crowd a Merry Christmas

When we returned from the store we let the family know that we had seen him tee off on the 10th hole. We figured he would be returning to the 18th soon. So Dale, Nina, 5 of the seven kids and I decided to walk up the street and wait for him to return. April my wife would of loved to come, but is on bed rest pregnant with twins

Word around the neighborhood had spread he was golfing at Mid Pac and there was a small gallery gathering around the 18th in anticipation of catching a look at Obama.

The secret service was very friendly and did not make us leave. They let us all know to stay where we were and not approach the green as he arrived or they would have to tackle us. Everybody chuckled at the comment. We were all very excited when we saw his golf cart coming up towards the 18th green. There was a little disappointment when the crowd realized he was not actually going to be finishing the 18th hole.

We were all watching form a distance as he unloaded the golf clubs and shook hands with other golfers that accompanied him. He surprised everybody and started walking towards us all. He came right up to us, wished us a Merry Christmas and shook everybody’s hands. My kids were very excited to be shaking hands with him and a few of them said they were not going to wash their hands.

Obama shaking my son Justin's hand

Justin Manson’s quote in the Star Bulletin

He was a great sport when my neighbor Jan asked him how his game was. He said “it was terrible, but it didn’t matter and that his basket ball game was a lot better”.

This once in a life time experience made my kids Christmas a little more memorable.

**News Flash: Obamas Second Coming – More Photos 12/29/08

Obama waving good bye to us.

More photos of Obama:

Obama leaving golf course

Thank you for taking the photos Nina

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.

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.