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CNBC Thinks the Oahu Real Estate Market Might Be Stabilizing

Posted by Justin - Head Web Head on July 3rd, 2009 | Tags: , ,

A short but interesting article that suggests Oahu real estate may be stabilizing was released by CNBC yesterday. Looking at the statistics for Oahu, we see that homes sales are up 9.5% from January to June 2009 compared with the same time last year. This comes out to 254 houses sold in 2009 vs. 232 houses sold in 2008.

It’s an interesting argument, and could very well be the case. However, the increase in number of homes sold could very well be spurred from lower prices, lower interest rates and the Obama tax credit. Interest rates will rise, the tax credit will end, and where will that leave us? Most likely in a scenario where home prices plunge even further, but the only people who will be able to buy them are those who can make an all cash offer. Even if you can get financing, interests rates will be so high (to offset inflation) that your monthly mortgage payment will be more then if you bought now - even if the home is more expensive.

There are also a lot of statistics that we don’t see. Relying on median prices tells us nothing, really. That’s why HawaiiLife.com is working on a stats and trends page that will include average price for sale, average price per square foot, average assessed value, etc. We hope to have this available to you sometime in August.

Alright, enough typing, here’s the CNBC Oahu stabilizing article.

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Mililani Mauka Single Family Home 2nd. Quarter ‘09 Report

Posted by Mike Gallagher, BIC on July 3rd, 2009 | Tags: , , , ,

mil-m-sfh-2nd-qt-16

It is a pleasure to see how well the inventory has gone down and the demand has picked up to arrive at this large increase in ACS %. Remember the ACS % is a % of Just Accepted Offers as compared to total inventory For Sale. More »

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Mililani Mauka Condo 2nd. Quarter ‘09 Report

Posted by Mike Gallagher, BIC on July 2nd, 2009 | Tags: , , ,

mil-m-condo-2nd-qt-1

Wow, the ACS % rate continues to be high which now tells us that 79% of available inventory for sale is in escrow with Just Accepted Offers. Demand is high and the inventory is slim. This is what drives up the ACS % rate. More »

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Honolulu Property Taxes Going Up. Still Low Compared to Mainland

Posted by David Buck, RA on June 29th, 2009 | Tags: , ,

BAD NEWS: The City & County of Honolulu have decided to raise our property taxes from $3.29 per $1,000 of assessed value to $3.42 per $1,000 of assessed value.

GOOD NEWS: This is still one of the lowest property tax rates I’m aware of in the nation! For example, if the city says your home is worth $1 Million, your annual property taxes would be $3,420 per year vs. $3,290 at previous rates.  This is a fraction of many mainland U.S. cities. Most places in California pay 1-1.2% of assessed value.  And in Austin, TX the tax rate I believe is 3% of assessed value. So, for the same $1 million assessment in CA, your annual property taxes would be between $10,000 to $12,000 per year. In Austin, they’d be $30,000 per year! That is a big difference! The catch in Austin however is I heard there’s no income tax & no corporate tax…

Another bright spot in this slower market is property assessments are actually coming down, making your net taxes actually less than the increase in the rate.  Unfortunately, that won’t last forever.

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Real Estate on Kauai for less than $500,000…

Posted by Ron Margolis, RA on June 26th, 2009 | Tags: , , , , , , , ,

“What does half a mill get me on Kauai?”  Now, that’s a good question. One simple answer is, a lot more than it would three years ago, as the real estate market on the island of Kauai began it’s movement into this correction phase. Now, from owners who are overextended, to banks who are more conservative than ever, prices on the Garden Island continue to correct. Naturally enough, the markets which appreciated the most, like Princeville on Kauai’s North Shore, are correcting the most, offering more for less to buyers who are seeking good deals in the marketplace. Here are just a few examples of what you can buy for around half a million.

  1. A three bedroom condo at the Plantation at Princeville. There, choose from a Princeville REO unit, with nice ocean views, that is listed for $469,900 or Unit 1421 which has lots of upgrades and is fully furnished for $557,777.  This complex was completed in 2005/06, has central air conditioning, a single car garage, and in general amenities that are not found in some of the older condo complexes on our island. The complex has 68 units, comprised of 17 quadplexes. The 3-bedroom units are on the second floor and have large lanais and generally better views than the ground floor, 2 bedroom units.
    Interior Location provides pool views, waterfall sounds, and good view of ocean

    Interior Location provides pool views, waterfall sounds, and good view of ocean

  2. How about a single family home in Princeville under 500K? This home on the Makai golf course is now priced at $499,900. Yes, it is a bank-owned Princeville REO and has been on the market 70 days. It needs more than a little TLC, but, the bones are good, and the location is excellent.

    Golf Course home for Under 500k in Princeville

    Golf Course home for Under 500k in Princeville

  3. What about a big, three bedroom, almost 2,000 sq. foot home in Kapaa, with modern finishes and big views of the Kalalea mountains AND the big blue pacific? This home is currently listed at $525,000 and is a Kapaa short sale, so the property requires bank approval before selling. Lotta home, lotta lot, lotta views, NOT a lotta $$$.

    Cool kitchen, high ceilings, nice fixtures

    Cool kitchen, high ceilings, nice fixture

    Ocean views PLUS views of the Kalalea mountains - spectacular

    Ocean views PLUS views of the Kalalea mountains - spectacular

  4. There are numerous one bedroom condos with excellent ocean views from the north, east and south sides for close to 400k or even less. One thing that unfortunately has not come down are the condo association fees and that’s important to consider when you are looking at the overall total cost of ownership.Poipu Kai condo with great ocean views. Kaha Lani next to the Wailua Golf Course, big ocean views for under 400K

Here’s a list of the best condo values under 500k island-wide. Most of these are Kauai short sales or foreclosures, so I’d highly recommend buyer representation should you chose to pursue one of these.

Kauai Under 500k Great Values list

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10 Reasons to Pre-Qualify For A Hawaii Home Loan

Posted by Dan Harrington - Research Analyst on June 26th, 2009 | Tags: ,

The recent sharp drop in median home prices on all of the Hawaiian Islands has presented some great buying opportunities. However, uncertain lending conditions make Pre-Qualification for a loan a good idea.

Here are the Top 10 Reasons to get Pre-Qualified for a Loan:

  1. Your offer will be more appealing to the seller, and sellers may require a Pre-Qualification or Pre-
Approval letter.
  2. You will be able to determine exactly what your monthly mortgage payments will be on any offer you might make if you are getting a fixed rate loan and you get Pre-Qualified for a certain amount. This includes the principal and interest as well as escrow, taxes, and private mortgage insurance (PMI) – insurance purchased by buyer to protect the lender.
  3. You will save a great deal of time by avoiding looking at, or even considering, homes that you are not able to afford. You don’t want to think that you have found the perfect home and then only later realize that you cannot afford it.
  4. Banks have dramatically tightened lending standards due to economic conditions, enforcing a stricter debt-to-income ratio (DTI) which reflects the percentage of your debt as compared to your gross annual income.
  5. Pre-Qualification determines precisely which loans you will be able to get based upon your credit history, income, debt, down payment amount, and other factors.
  6. Using a new “smart-technology” real estate site such as Hawaiilife.com you will be able to precisely pre-set your search criteria – including your price range – and then get updates only on homes you are interested in AND are able to afford.
  7. Pre-Qualification will lessen your stress when choosing a loan package. You don’t have to use the same lender that Pre-Qualified you, so you can shop around and compare rates.
  8. You also will be in a better position to anticipate the exact closing costs of the real estate purchase, and what each of the costs are for.
  9. Once you are Pre-Qualified for a loan, you will be able to get optimal use of your real estate agent’s time for other important aspects of the home-buying process including considering different home styles and evaluating the desirability of particular locations (e.g., the quality of the local schools).
  10. A mortgage broker will be able to discuss different financing options with you once you are Pre-Qualified, and he/she will also help you choose the best type of loan for your particular situation.

In summary, now more than ever it is important to Pre-Qualify for a loan if you are considering buying a house for sale in Hawaii. A Pre-Qualification Letter from a lender will state that your credit and financial information has been reviewed and is acceptable for getting a loan, though it does not provide an absolute guarantee of a loan. You may consider going the extra step and getting Pre-Approved for a home loan before you make the offer. This will give you the best chance of getting the property in a competitive market.

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Top 10 Most Searched Hawaii Properties

Posted by Matt Beall, R on June 24th, 2009 | Tags: , , , , , , , , ,

A list of the most viewed real estate listings in Hawaii is precious information, like a barometer of Hawaii’s real estate market. It shows our fantasies, and the reality. Some of these listings are already under contract pending a sale, and some have offers pending. The list of properties that get the most traffic, if you know what to look for, can almost predict what’s going to sell next.

I have the Top 10 saved as Favorites in My Hawaii Life account.  I’ll share the current list here.  You can view the listing by just clicking on the address.  Feel free to comment… I’m not familiar with all of them, so I’m always curious what their appeal is, etc.

Most Viewed Listings:

#10) 2500 Ana Aina Place, Waialae, Oahu $18,000,000

#9) 766176 Plumeria Rd., Holuloa, Big Island $199,000

#8) 681070 Honokapaope Way, Waikaloa, Big Island $24,000,000

#7) 4701 Kawaihau Rd., Kapaa, Kauai $189,000

#6)  5800192 Kuhio Hwy, Ha’ena, Kauai $12,000,000

#5)  152762 Opae St., Hawaiian Beaches, Big Island $217,000

#4)  Anini Vista Dr., Kilauea, Kauai $10,800,000

#3)  4999 Kahala Ave, Waialae, Oahu $99,000 LH

#2)  6695 Olohena Rd., Kapaa, Kauai $875,000

And, the #1 Most Viewed Hawaii Listing…

Papa’a Bay, Aliomanu-Moloa’a, Kauai $38,500,000

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What’s Really Happening in the Oahu Real Estate Market? An Almost Mid-Year Report

Posted by Mike Gallagher, BIC on June 23rd, 2009 | Tags: , , , , ,

My overall take for Hawaii Real Estate has not changed. Due to increased taxes by our State and City & County of Honolulu in their mindless and uncaring manner toward their constituents, coupled with the National Obama Mantra of more Government in our lives is better…because it’s the ‘Socialist’ thing to do…along with absolutely ridiculous new Federal Real Estate related regulation and reckless Government spending…we have NOT seen the worst. The worst is yet to come.

Please, whatever you do, do not buy into the news you may be hearing that the Economy is improving. It is not. Do not believe “The real estate market is bottoming out.” It is not.

Look for a protracted decline in real estate values, followed by at the very least, a year’s worth of flat line values going into late 2011 or possibly beyond.

For right now, protect what you have and hold onto your hats and pull up your socks as we are about to be hit by the all time highest unemployment figures the Nation has seen since the early ’80’s prior to when President Reagan brought us to recovery. Get ready for much higher interest rates and inflation. Get ready for even more increased taxes from everyone and more negative State and Local budgets.

Hawaii, right now, is the most heavily taxed State in the United States when you take into account the number of taxes and the rate of these taxes we pay to the State and City & County.

There are only 3-4 States in the United States who do not have budgets under siege and their tax revenues are doing just fine compared with what they are spending. In other words, they have “Balanced Budgets.” These States are ‘mineral rich’ States like Alaska. So…that is approximately 48 States with Negative Budgets who are in trouble.

If you are part of the “Silent Majority” out there and you continue to keep silent, you are giving up our futures to the likes of Special Interest Groups that have already, killed the Hawaii Super Ferry, decreased business in Hawaii, decreased jobs in Hawaii, given us more State and City & County Employees, while giving us less Services at higher costs.

If you continue to be silent what we will see for our immediate future will be spelled: C A L I F O R N I A.

If you do not like it, then do something about it and allow yourself to be counted by the Left as “mindless right wing radicals” by the Liberal dominated Press we are all well acquainted with. More »

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New Disclosure for Electricity Costs

Posted by David Buck, RA on June 22nd, 2009 | Tags: , , , , , , ,

As of July 1st, Hawaii owners will need to disclose their electricity bills, with some exceptions.  House Bill 1464 says:

“Prior to the sale of residential real property, the property owner shall make a good faith declaration of electricity cost based on the most recent three-month period in which the property was occupied prior to the date of the seller’s disclosure, pursuant to chapter 508D. This declaration shall only apply where the owner directly pays the electrical utility bills, and shall not apply in the case of a foreclosure of residential real property or where there are no electric utility accounts associated with the property.”

When working with buyers, I have often had clients ask me to ask the listing agent what the owner’s electricity costs are? This is a good question, because as a potential buyer, you may want to get an idea going in what your monthly cost will be. The hard part about this is every owner has different uses: Some have large families, some don’t.  Some have lots of computer equipment, some don’t. Some have multiple refrigerators, some have only one. Some run the air conditioning a lot, some don’t. I just looked at my own electric bill and although I made a conscious effort to use the AC less, this has been a very hot June thus far on Oahu. The good news is although my use went up, my bill was $100 less than it was in June of 2008! The price of oil is obviously a big factor and can make a HUGE difference as well.  Although this new law may help potential buyers with their decision process, I would take it with a grain of salt!

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Maui Home Sales Are Falling, Will Property Prices Begin to Decline?

Posted by Justin - Head Web Head on June 17th, 2009 | Tags: ,

After reading a recent Pacifc Business article, May Maui home sales off 40%, prices hold, I began to think…if Maui home sales are falling, will property prices eventually drop?

Well, if you read deeper into the article, what you find out is that the median of prices of homes sold on Maui have dropped 14% over the same time last year. But even 14% isn’t that big of a difference compared to declines we’ve witnessed on the mainland, or even in other parts of Hawaii.

The factor we have to look at when looking at a market like Maui is how much new real estate can be built in the area. When you live on an island with little room for development, how far can prices really drop?

One interesting statistic to know would be how much have listing prices changed on Maui. Perhaps we can get one of our Maui real estate experts to answer this question.

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