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 »
Hawaii Real Estate Market | Hawaii Life
Mililani Mauka Condo 2nd. Quarter ‘09 Report
Posted by Mike Gallagher, BIC on July 2nd, 2009 |
Tags: Condo, Hawaii, Mililani, Oahu
Top 10 Most Searched Hawaii Properties
Posted by Matt Beall, R on June 24th, 2009 |
Tags: Big Island, Haena, Hawaii, Kapaa, Kauai, Kilauea, Maui, Oahu, Waialae, Waikaloa
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
New Disclosure for Electricity Costs
Posted by David Buck, RA on June 22nd, 2009 |
Tags: Big Island, Buying, Hawaii, Kauai, Maui, News, Oahu, Selling
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!
High Tech, High Touch Adds Value in Hawaii Real Estate
Posted by Beth Thoma Robinson, R(S) on June 16th, 2009 |
Tags: Hawaii, Press
Our Hawaii Life Principal Broker Matt Beall has written an excellent article about whether real estate agents provide value, especially given how technology has changed the real estate industry to the benefit of the consumer. As Matt has previous explained, before the advent of the Internet, your local MLS (multiple listing service) compiled listings into a fat book which it sold to participating agents. You the consumer could only get access to the information via an agent. Was that providing value? In a sense it was, but there was a strong element of control, as there was in most consumer markets.
Remember the Clue Train Manifesto? When that website (and subsequent bestselling book) appeared in 1999, the authors reminded us that markets are fundamentally conversations about value. Markets were getting smarter and faster thanks to real people entering into conversation with one another via the Internet. And consumers were getting smarter about using online networks to obtain real information real fast; the companies that served them were slow in waking up to the new reality as an opportunity rather than a threat. Ten years later, real estate is still struggling to catch on. Most real estate company websites are essentially monologues, blatant advertising, anything but a vehicle for conversations. They push information and their sales pitch at the consumer. No wonder consumers turn to Zillow, Trulia, and other websites that give them information AND a chance to participate in market conversation. No wonder smart agents are out having genuine conversations with consumers on Zillow, Trulia, ActiveRain, their blogs, Facebook and Twitter!
Of course, one problem with MLS data, whether you are searching it via an individual real estate company’s website or on the official MLS site or Trulia or Realtor.com, is that each listing agent is responsible for the descriptive and photographic content associated with their listing. And many have not figured out that their audience is no longer another local agent! Maybe you’ve seen listings where agents pitch other agents in the public remarks ( ‘Bonus to selling agent!”) which I would think is a pretty big red flag to a prospective buyer. Many listing agents haven’t figured out that the better the information they provide, the better they are marketing their Seller’s property (marketing means assisting the right prospective buyer to identify him or herself). How often have you seen a listing where the description just repeats property data (”Beautiful 3BR/2BA home with over 1400 sq ft of living area…”) or where it says the property has “wonderful ocean views” and fails to include even one photo of the view?
More »
Foreclosures in North Hawaii
Posted by Beth Thoma Robinson, R(S) on June 1st, 2009 |
Tags: Big Island, Buying, Hawaii
Foreclosure sign
Many Mainland buyers interested in our sunny Big Island Kohala region explicitly ask to look at “foreclosures.” These buyers are often looking at properties in other warm climate areas such as Arizona, Nevada, California, and Florida–the four states that happen to have the highest foreclosure rates in the U.S.
Compared with these Mainland markets, bank-owned properties in South Kohala, including the Kohala Coast Resorts, Waikoloa Village and Waimea, constitute a small percentage of our property sales. Although not all REO properties are properly identified as such in our MLS, here is what the statistics currently show.
There are 620 active listings that are not bank-owned, and only 14 listings that show as bank-owned (again, I can think of at least one listing that doesn’t come up in this search because although properly identified as an REO in the description, the proper box isn’t checked on the data input form, so the number is imprecise). That works out to about 2% of properties on the market, whereas in some areas the numbers are more like 2% of all homes with mortgages!
There are 52 properties in escrow that aren’t bank-owned, and only 9 that are (plus another 5 or so that are identified as short sales). To date there have been 95 properties sold this year in South Kohala, including condos, homes and land ; of these, only 6 were bank-owned properties and all of these residences and condos were in Waikoloa Village or Waimea. In other words, the wave of foreclosures has not yet hit the Kohala Coast beaches, although foreclosure listings at newer condominium projects such as Kolea, Halii Kai, Waikoloa Colony Villas, Waikoloa Beach Villas, and the Fairways and Villages at Mauna Lani are starting to show up on the Big Island MLS.
Summarizing the year-to-date statistics, around 2% of the properties on the market in South Kohala are REOs, although they constitute a disproportionate 6% share of the sales. But what about the future?
It is difficult to get an accurate handle on the real number of homes in some stage of the process. Searching the popular foreclosure websites would give almost 100 properties as pre-foreclosure or trustee sale, but the careful reader will see many of these are duplicates. On the other hand, our team was discussing the example of one listing among the 620 non-REO active South Kohala MLS listings that we knew would be bank-owned as of the end of this month. The furniture and appliances have already been removed. Yet there was nothing in the listing to show it as a distressed property, and because the owner negotiated a deed-in-lieu of foreclosure, it also doesn’t appear on sites such as RealtyTrac or Foreclosures.com.
The other factor is that with the Hawaii legislature having just removed some of the restrictions real estate agents had faced in helping clients with their distressed properties, we may actually find more homeowners getting help to renegotiate and keep their homes, or accomplish a short sale. That would apply more to the residential markets of Waikoloa Village and Waimea than to resort properties which were bought as second homes or investment properties.
Some things we can say for certain, however:
- With the majority of sales in Waikoloa Village and Waimea (Kamuela) having been developer close-outs and foreclosures so far in 2009, they constitute a large enough percentage of sales that appraisers must use them as comparables. That means buyers benefit equally whether they are looking at a foreclosure or a regular property. And the non-foreclosure may be in much better condition!
- If you want to pick up a bargain in a resort property, the wave of foreclosures is just beginning. But it currently looks as though it will be 2-5% of properties, not 20-50%–so don’t count on necessarily finding the exact home of your dreams among the foreclosures. And be prepared for additional closing costs and post-closing costs (repairs and furnishing) before the property is back in prime condition.
3 Things to Look For When Buying a Home in Hawaii
Posted by Justin - Head Web Head on May 29th, 2009 |
Tags: Buying, Hawaii
As with buying a home anywhere, personal taste, lifestyle and budget will always be the biggest influencing factors. However, in Hawaii, there are some aspects unique to the islands that you may not know about, but should always keep in mind.
1. Homes built to take advantage of prevailing tradewinds: Hawaii can be humid, especially during the summer, so it is important that the home you purchase was built to accommodate the prevailing NE trade winds of the islands.
2. Outdoor living space: Hawaii has a wonderful climate, so make sure your new home has outdoor living space or at least the potential for a great outdoor living area. Many homes in Hawaii will already have decks or what we in the islands call a lanai. A covered lanai is great because it will help to preserve your deck if you are searching for a home in an area that is know to have a lot of rainfall. Screened in lanais are also nice because they will keep the mosquitoes away!
3. Abig roof with big eaves: Hawaii is known for its lush beauty, and if you are buying a home in an area with a tropical climate, it is important that your home has the proper amount of overhang to protect it from the weather. There’s a reason that the old Hawaiian architecture featured those huge roofs. Large eaves will protect the house from water and extensive sun, and keep the house cooler as well. It’s a good idea which direction the wind and weather usually comes from, so you can know where it’s most importatant to have the protection of a big roof.
Should I Buy a Hawaii Leasehold Property?
Posted by David Buck, RA on May 26th, 2009 |
Tags: Buying, Hawaii, News
There was a recent article in the Star Bulletin about the Queen Emma Land Company taking back a leasehold property in Waikiki. The property in question was the White Sands Waikiki Resort Club run as a time-share property by Celebrity Resorts. Negotiations to renew the long term lease were not successful, most likely because, “(t)he rent has gone up substantially,” said Les Goya, vice president of Queen Emma.
In most circumstances, it doesn’t make sense to buy leasehold. The Queen Emma story is a perfect example why - the Landowner can (and has the right to) take back the property at the end of the lease.
When Honolulu Mayor Mufi Hanneman came into office, he revamped the old mandatory “lease to fee” conversion, which used to say if you had a % of owners that wanted to buy the fee interest in a property, the seller would be forced to sell. A monumental case regarding this revamped law took place back in January of 2008, where Kaneohe Ranch took back property from home owners to redevelop in a partnership with DR Horton.
“…a historic landmark for leasehold ownership in Hawaii. The landowner (lessor), Kaneohe Ranch prevailed in a suit between themselves and the individual owners (lessees) of the Kailuan in Kailua. Over a dozen owners will be forced to surrender their homes…”
While leasehold properties are attractive because they tend to be less expensive then their fee simple counter parts, there are risks involved when buying these types of properties. For one, you don’t own the leasehold property - you are only leasing it. We get a lot of inquiries on leasehold property for people using our Hawaii real estate search engine. What’s great about our real estate search tool, is you have the option to uncheck the leasehold checkbox under “more options” which brings up the advanced search. If you don’t want to look at property where someone else owns or will own the land you’re looking to purchase, I would suggest unchecking leasehold. When in doubt, I always advise my clients to buy fee simple!
Indicators Point to a Rebounding Hawaii Economy
Posted by Dan Harrington - Research Analyst on May 22nd, 2009 |
Tags: Buying, Hawaii, News, Sales Stats
Hawaii’s housing market may begin to see increasing numbers of sales in the coming months according to some prominent economists and professionals in both the real estate and construction industries.
Harvey Shapiro, Research Economist at the Honolulu Board of REALTORS®, noted that O‘ahu’s relatively low inventory is keeping prices more stable than in other areas of the U.S. Honolulu’s relatively low foreclosure rate may also be a factor in the market’s stability, as Honolulu ranked 150th among the top 203 metropolitan areas in the U.S. for foreclosure filings for the first quarter of 2009.
Historically, the Hawaii real estate market has been strongly influenced by market trends in California, where home sales doubled in January of 2009 compared with the previous year, and exceeded 600,000 for the first time since 2005.
David Crowe, the chief economist for the National Association of Home Builders, recently said that the middle of 2009 may be the bottom of the housing market, and he predicted an upswing in home construction during the latter half of 2009.
The Wall Street Journal also recently reported that the number of homes listed for sale plummeted across most major US markets at the beginning of 2009, while the number of homes sales was beginning to rise. More »
Major Relief for Hawaii’s “Distressed” Property Owners
Posted by Matt Beall, R on May 21st, 2009 |
Tags: Foreclosures, Hawaii, News
Yesterday, Hawaii’s Governor Linda Lingle signed Senate Bill 34 into law. This long awaited amendment to Hawaii’s Mortgage Rescue Fraud Prevention Act (Act 137), provides an exemption for licensed real estate brokers and salespersons from being defined as “distressed property consultants” under Act 137. Most buyers and sellers were (and are) completely unaware of the havoc that Act 137 caused in the market… until they attempted to buy or sell a property that was defined as a “Distressed Property”. In short, a “Distressed Property” is defined as any property where the owner/borrower was 2 months or more behind in payments to ANY lien holder. Originally, Act 137 prohibited Realtors from communicating directly with lien holders on behalf of their clients OR from coaching their clients on how to communicate and deliver information to their lien holders about the sale of their property!
People who had legitimate hardships, who could no longer pay their mortgages, were left completely ‘unrepresentable’ by Realtors under Act 137. For example (just one of MANY), we’ve represented clients who suffered debilitating illnesses which cost them their jobs and their ability to pay their mortgages… but once they were 2 months behind on their payments, we, their licensed agents and fiduciaries, were no longer allowed to speak with their creditors or even coach our clients on how to proceed with the sale of the property that they hired us to sell!
So, the end result was that people in Hawaii who needed the assistance of a Realtor the most were prevented from getting it… and this has undoubtedly contributed to the State’s growing number of foreclosures.
This new law will be Act 66 of the 2009 Legislative Session, and is effective immediately. Finally, Hawaii’s property owners who are faced with financial hardship, and perhaps foreclosure, will be able to have the guidance and expertise of Realtors who are trained in Short Sales and foreclosures.
West Hawaii Planning Commission Meets
Posted by Beth Thoma Robinson, R(S) on May 16th, 2009 |
Tags: Big Island, Hawaii, News
Today was the long-awaited first meeting of the West Hawaii Planning Commission. Until this year, all decisions regarding issues such as zoning variances and subdivision applications were handled by a single commission. If you’ve spent a day driving the circumference of the Big Island, you realize that the East (Hilo) side of the island has a very different character from the West (Kona/Kohala) side with its high end resorts and the rapid growth of Kailua Kona from sleepy town into population center. Voters last year approved the idea of splitting the commission so that commissioners could be appointed who were more familiar with the nuances of the districts, communities and planning issues on each half of the Island.
If you are buying a Big Island resort condominium property, or an in-town residence, the county code and zoning and planning regulations probably are not of particular interest. Here, however, are some situations I’ve recently encountered with clients that would require thorough understanding and investigation of zoning and planning rules and processes:
- a prospective buyer started looking at agricultural-zoned parcels larger than they needed, wondering if they could subdivide and sell off the rest of the acreage
- a buyer looking for a large home on acreage with the dream of hosting weddings as a business
- a buyer who discovered when they received all the information on the acreage in escrow that the entire oceanfront subdivision had been surveyed at the outset for cultural resources and those crumbling rock walls they found so attractive would require special consideration in design of their house and driveway
- buyers looking at a foreclosure property in North Kohala built in an era before permitting processes began, and wondering what that would mean for appraisal and renovation of the property
- buyers considering an oceanfront land parcel trying to understand subdivision approval requirements regarding public access, and what “special management area” and “conservation district” would mean for their construction and landscaping dreams
- a friend who painstakingly restored some historic buildings on her property and is now spending a ton of money getting them permitted after the fact and applying for a special permit to use them as she had planned.
Some online resources include the County of Hawaii Zoning Code, Subdivision, and Planning Rules and the County Property Tax website where you can not only find current property tax rates on any property, you can also look up the status of building permits associated with the address.
It is extremely important for buyers to do their own due diligence with respect to a property they purchase. A knowledgeable agent can assist you in understanding what you should be looking for and where to find answers to your questions.
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