The real estate market in Hawaii Kai is showing signs of life and renewal - inventory has risen, and sales numbers have improved.
Hawaii Kai Condos
15 sales closed, the lowest $360,000 for a 1/1 in the Mauna Luan, the highest, $738,000 for a 3/2.5 for a waterfront unit in Peninsula II.
This compares to January, 2009, when 10 homes sold, with a low of $300,000 for a 1/1 in Naniwa Gardens, and a high of $655,000 in Moana Kai, sold prior to listing.
For the last 6 months, 107 condos sold, with a low price of $225,000 for a Fee Available home in Koko Isle, and a high of $875,000 in Peninsula I.
Single Family Homes
10 sales closed, the lowest $704,000 in Mariners Valley, and the highest, $1,225,000 in Triangle.
This compares to January, 2009, when 8 homes sold, with a low of $637,000 in Kamiloiki to a high of $1,000,000 in Triangle.
For the last 6 months, 106 homes sold, with a low price of $515,000 in Kalama Valley and a high of $2,500,000 in Triangle.
It is hard to read much into statistical events with only 15 or 10 units, but I know personally that Realtors are busier and the phone is ringing again. There are currently 80 active single family listings and 41 active condo listings.
Contact me for an analysis of any neighborhood or condo complex, and request my free neighborhood and condo reports for relevant, current sales information.
Barbara Abe
808-226-2537
barbara@barbarashawaii.com
Spacious 3/2 in downtown location
• 1,339 sq. ft., 2 bath, 3 bdrm single story - 
MLS® $298,000 - Leasehold-Long Lease
Punahou, Honolulu - Rarely available, this unique, spacious 3/2 in great location - close to Kapiolani Hospital, UH, Punahou, H1, Ala Moana sc and on bus line. Unit has washer & dryer on lanai and covered parking space. Living area of 1,339 sf includes 2 lanais. Long lease. This small, friendly building which welcomes pets could be absolutely perfect for you!
Property information
The Hawaii Geographic Information Coordinating Council will award a $1,000 scholarship to a deserving student who shows an appreciation for and understanding of geography and geographic information systems. Applications for the Mark Lierman Memorial Scholarship are available at www.higicc.camp8.org/awards and must be postmarked no later than April 5.
Barbara Abe, Realtor
808-226-2537
A recent article in RisMedia explored home trends for this coming year. They discuss several developments you may see some or all of in Hawaii Kai.
1. Glitsy Glamour is out, Comfort is In: home crafts and homey touches.
2. Black walls. Smaller rooms can look larger with a black wall. Use crisp white trim and accents. Or use the black for the accessories or furniture.
3. Along with the homey touch, you'll see patchwork quilts, needlepoint, hooked rugs, heirlooms, family or historical pieces. This is a blend of comfort and formality.
4. Antiques or modernized reimaged antiques.
5. Made in the USA - and here in Hawaii, even more of a local emphasis. Buying local helps the environment and our economy.
6. Reconnection with the land - use of local woods, reclaimed woods, and natural fibers, especially recycled ones like burlap and grain sacks as examples.
7. The economic downturn has produced a resurgence of flea markets and thrift stores. Instead of a total room remodel, try a perk up with accents or lamps or a new furniture piece using Hawaii textiles.
These are the national trends. Look for them to be modified island-style.
Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
A new law effective Jan.1, 2010 mandates that new housing in Hawaii have solar water heaters. With a solar water heater, the typical homeowner will pay 30 percent to 40 percent less on their electric bills, or about $750 a year, depending on the number of people in the household and how much water they use. For a new house, a system would cost roughly $5,000 to $6,000, so it should pay for itself within 10 years.
Enacted in 2008 but mandated to begin the 1st of the year, the law says a building permit cannot be issued for a new single-family structure that does not include a solar water heater system meeting certain standards.
A homebuilder may, however, apply for a variance through the state Department of Commerce and Consumer Affairs' energy resources coordinator, under some circumstances. The law says exemptions can be allowed if a homebuilder can demonstrate a home is being built in a "poor solar resource" area, or that a solar water heater is cost-prohibitive based on a 15-year life cycle cost-benefit analysis.
A related major concern, which is shared by environmental interests, is language in the law that allows homebuilders to receive a variance if they choose to install a tankless gas water heater, in combination with another gas appliance.
Carilyn Shon, the state's energy conservation program manager, points out that petroleum experts are estimating that oil prices will more than double in the coming two years, providing additional incentive for people to go to solar water heating. The law will reduce greenhouse gas emissions statewide by 8,000 tons annually from avoided electricity use, according to the Blue Planet Foundation, which aims to make Hawai'i energy independent.
If you are considering purchasing new construction, check with the builder or ask me to determine what energy savings they offer in their homes. Give me a call or email before you look at any new homes, so we can qualify the builder together.
Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
New, naturally formed beach land above the high-water mark in Hawaii belongs to the public, not adjoining property owners, the Intermediate Court of Appeals has concluded. The court upheld provisions of a 2003 law that declared that future land formed through accretion belonged to the state. The judges said, however, that oceanfront private property owners could claim land formed before the law took effect on May 19, 2003 (Act 73).
In Hawaii the public beach is defined as the shoreline to the highest wash of the waves. Before Act 73 was passed, oceanfront property owners in Hawaii could register ownership of accreted land above that high-water mark if they proved it had existed for 20 years. The new law changed that, declaring that such land belonged to the state unless it was private property that had previously eroded.
Portlock oceanfront homeowners in Hawaii Kai sued the state in 2005, claiming the law represented an unconstitutional "taking" of their property. The case, Maunalua Bay Beach Ohana 28 et al. v. the State of Hawaii, was brought by three nonprofit corporations formed by the homeowners as a class-action suit on behalf of all oceanfront private property owners.
The homeowners prevailed at Circuit Court, and the state then took the case to the Intermediate Court of Appeals. The appeals court, in its ruling, said that "any claims that plaintiffs may have to future accretions are purely speculative" and do not constitute a vested right. But the judges said the law did take away private landowners' rights to existing accreted land and that the state could owe damages.
The appeals court sent the case back to Circuit Court to determine whether plaintiffs had accreted lands that existed when Act 73 was enacted, and if so, what damages they incurred. Paul Alston, attorney for the landowners, said the plaintiffs had substantial amounts of accreted land, and because it is a class-action suit, the ruling applies to all oceanfront property owners.
In its ruling, the appeals court cited a state Supreme Court decision that held that new land created by volcanic eruption belonged to the people of Hawaii, to be held in public trust by the government. It also noted that the state Constitution provides that "all public natural resources are held in trust by the state for the benefit of the people."
Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
Single Family Homes
18 homes sold in Hawaii Kai in December, compared to 13 last year. Median sales price was $784,500, vs. $885,000 in 2008.
For the year, 182 homes sold, compared to 161 last year. Median sales price was $795,000 vs. $850,000 in 2008.
New listing activity decreased to 16 in December vs. 18 last year, and median list price also decreased to $845,000 from $1,095,000 in 2008.
Inventory has decreased to 64 active listings, down from 137 last year.
Condos
20 condos closed in December, compared to 13 last year. Median sales price was $458,250 compared to $480,000 in 2008.
For the year, 186 condos sold vs. 195 last year. Median sales price was $493,500 vs. $539,000 in 2008.
New listing activity for condos has decreased, to 12 this December, down from 19 last year. Median list price has increased, to $644,000 from $599,000 in 2008.
Inventory for condos is down to 32 active listings, compared to 127 last year.
For a thorough analysis of any complex or neighborhood, just give me a call.
Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
Residents and many who follow the news of Hawaii can't have missed learning of the state's budget woes, manifested in teacher furloughs and state library cut backs.
I'm pleased to write that our Honolulu Board of Realtors has given a $10,000 grant to the Friends of the Library of Hawai'i in an effort to keep local libraries open, as part of its commitment to supporting the communities in which we live and work.
"Hawaii's public library system does more than just provide access to books, videos, and online services, it teaches and nurtures a love of reading and of life-long learning, which our REALTORS strongly believe in," said Sandra "Sam" Bangerter, president of the Honolulu Board of REALTORS. "By supporting the Friends of the Library Hawaii, we hope to help keep the doors our neighborhood libraries open and enrich the lives of their users."
This is just a pittance toward the $3M in budget cuts which will affect library operations throughout Hawaii, but every bit helps.
Founded in 1879, the Friends of the Library of Hawaii is a nonprofit organization whose primary objective is to maintain free public libraries, to promote extension of library services throughout the state, and to increase the facilities of the public library system of Hawaii by securing materials beyond the command of the ordinary library budget. Visit their web site (use the link above) to learn how you can help.
Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
Hawaii Kai doesn't have as many short sales or foreclosed properties as many other areas on Oahu, but we do have our share. While they can represent great buying opportunities, you have to be sure, as a buyer, you do your homework and pay for a thorough inspection. Here are some things to look for before you make an offer or bid at auction:
1. If appliances are missing, does it look like they were removed or ripped out? If ripped, look closer for other damage caused by possibly very angry owners.
2. Peeling, bubbling, discoloration can be red flags for water damage.
3. Mold follows water and humidity. You may need a special mold inspector. Look into cabinets, under the bathroom sinks, behind drawers - out-of-the-way dark places.
4. Blocked drains and pipes can be very expensive to fix.
5. Homemade renovations may have saved the previous owner money, but may cost you to redo or fix if not up to code and not done with a permit.
6. If surfaces have recently been painted, question why.
This is a very short and incomplete list, but hopefully will get you thinking about the care you need to take if you are going to seriously consider purchasing a foreclosed or bank-owned property. You'll need a local Realtor's expertise (call or email me), at least one good home inspector, and a termite inspector. Then, you want to add any repairs they recommend to your purchase price.
Look for foreclosed properties on the search page of my web site, and let me know if you have any questions about buying a distressed home.
Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
O'ahu property assessments are down about 6.7 percent from a year ago, according to notices being mailed out this week to 284,000 property owners islandwide. The 6.7 percent is less than the 10 percent drop in assessments that had been projected by budget officials just last week
By geographical district, the Wai'anae Coast's 13.3 percent drop in values was the biggest decrease.
The 'Ewa-Waipahu area, Wahiawa, Windward and Central O'ahu all saw residential valuations drop by more than 6 percent.
The drop in the assessed values means less income for the city, unless the City Council raises tax rates. Property taxes are the city's main revenue source, accounting for the bulk of the $1.8 billion operating budget. It's not a certainty the council will raise tax rates to offset the drop in assessments. Rates are not set until late May or early June.
Property owners can appeal if they do not agree with the assessed value of the property, the classification of the property, or the amount of the exemption allowed, according to the city. By law, the city must put 50 percent of the taxes being disputed in an escrow account.
Anticipating that there may be a need to increase rates next year, the Hannemann administration pushed for and the council approved creation of a separate owner-occupant classification. Hannemann administration officials argued that owner-occupants may need to be shielded from higher taxes. It's likely that those who live in their own homes will be paying a lower rate than those who own rentals or other types of residential properties as investments.
Contact me if you aren't sure how to find out about your Hawaii Kai property assessment.
(resource: Honolulu Advertiser)
Home sellers and potential buyers nationwide welcomed the recent news that Congress had decided to extend and greatly expand the Home Buyer's tax credit in an attempt to further stimulate the economy. Not only does the new legislation extend the existing first time buyer's credit until mid-next year, but it also creates a tax credit for qualified repeat buyers. The change in legislation will relieve home buyers scrambling to meet the original deadline and may encourage a wider range of buyers to consider purchasing a residence.
Deadline: Whereas the original tax credit was set to expire on December 1st, buyers now have additional time to find their dream home. Buyers must have a contract to purchase a residence in place before May 1 2010, and the deal must close before July 1, 2010 in order to take advantage of the tax credits. At this stage, no additional extensions are anticipated.
Sale Price Limit: A ceiling has now been set for the sales price of homes eligible for the tax credit. For purchases made after Nov. 6, the tax credit is only available for any homes costing less than $800,000.
$6,500 Credit for Repeat Buyers: Homeowners considering a new home purchase may now be eligible for their own tax credit. Taxpayers who have lived in the same residence for five consecutive years out of the past eight can now qualify for a tax credit of as much as 10% of the purchase price of a new principal residence (up to a maximum $6,500). The new residence need not be a single-family home, and there is no requirement that the new residence must cost more than the previous residence. Note: the credit for repeat buyers does not apply to homes purchased prior to November 6th of this year.
More Accommodating Income Requirements: The tax credit was designed to phase out based on income levels, meaning the amount of the tax credit decreases as the filer's income approaches the maximum limit. Under the previous format, income restrictions called for the tax credit to begin phasing out for individuals making $75,000 annually, (modified adjusted gross income*), with no credit available to individuals making $95,000 or more. For married couples filing jointly, this "phasing out" range was $150,000 - $170,000 under the previous law. The income limits set within the new law are far more liberal. For single filers, the credits now begin phasing out at $125,000 up to $145,000 of modified adjusted gross income. For married couples filing jointly, the range begins at $225,000 and ends at $245,000.
The existing phase-out ranges of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009. (*For most people, modified adjusted gross income will be the same as adjusted gross income.)
Anti-Abuse Measures: The new law contains anti-abuse measures designed to address and prevent fraudulent applications for the home-buyer tax credit. Persons who are under the age of 18 or who are claimed as dependants by other taxpayers will not be qualified for the tax credit program. Taxpayers taking the credit will also have to furnish proof of purchase. After filling out IRS Form 5405 to determine their tax credit amount, buyers must attach a copy of their HUD-1 settlement form (i.e. closing statement) as proof of the completed home purchase.
Additional Limitations on Buyer-Seller Relationship: Under the previous law, buyers were not eligible for the tax credit when purchasing a home from a lineal ancestor or descendent. The new law applying to purchases made after Nov. 6 also prohibits buyers from taking the credit if the home is purchased from a spouse or the spouse's lineal relatives.
Up to $8,000 Credit for New Buyers: First-time home buyers remain eligible for a credit of as much as 10% of the purchase price of a new principal residence, up to a maximum $8,000. "First-time" is still defined as buyers who haven't owned a principal residence for a three year period prior to the home purchase (including both partners of a married couple).
Three Year "Principle Residence" Window: Neither the New Home Buyer Credit nor the Repeat Home Buyer Credit needs to be repaid provided that the buyer(s) reside in the home for a period of three years following the purchase. If within 36 months of the date of purchase the property is no longer used as the taxpayer's principal residence, the taxpayer is required to repay the credit. Repayment of the full amount of the credit must be included with the income tax return for the year in which the home ceased to be the taxpayer's principal residence. The full amount of the credit is reflected as additional tax on that year's tax return.
Tax Credit <> Not Deduction: The credits offer a refundable dollar-for-dollar reduction in what the taxpayer owes. For example, a taxpayer who owes $10,000 and qualifies for the full $8,000 tax credit would only owe the IRS $2,000. This offers a greater savings than a tax deduction.
The term "refundable" means that either of the home buyer credits can be claimed even if the taxpayer has little to no federal income tax liability to offset. If the qualifying credit exceeds the taxpayer's liability, the government would refund the excess portion of the tax credit. For example, if you qualify for an $8,000 credit but only owe $5,000 in tax, you could receive a $3,000 check from the Internal Revenue Service.
Tax Return Filing Options: 2009 home buyers may claim the credit on either their 2008 or 2009 returns, while 2010 buyers can claim the credit on either their 2009 or 2010 returns.
If you are at all interested in purchasing Hawaii Kai real estate in 2010, there should be something in this new law for you. Contact me to discuss your options.
Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
November sales of previously owned single-family homes jumped 47 percent, while the surge for condominiums was 103 percent above sales during the same month last year, according to the Honolulu Board of Realtors.
We have a great alignment of low interest rates, declining inventory, and tax breaks both for sellers and 1st time buyers. Last month, the federal government announced it would extend the stimulus program through April for first-time homebuyers, and add a credit up to $6,500 for qualifying repeat buyers. Under the program, purchase contracts must be signed by April 30 and close by June 30.
In November, there were 249 single-family homes sold compared with 170 a year earlier. The median price, which is a point at which half the sales were for more and half for less, was down 1 percent to $590,000 from $594,500.
Condo sales soared to 407 from 201 in the same period. The median price was $320,000, up 1 percent from $316,200.
November home sale volume, while higher than a year ago, was still well off the pace near the height of the market. In November 2004 and 2005, there were roughly 370 single-family homes and 620 condo sales before a significant decline in 2006.
Because the tax credit targeted first-time buyers, much of the increase was concentrated in more affordable areas of O'ahu's housing market. For condos, the biggest increases were in the Makiki-Mo'ili'ili and Waikíkí areas. There were also big surges in Ala Moana-Kaka'ako, 'Ewa Plain-Kapolei, Waipa- hu and Pearl City. For single-family homes, the biggest increase in sales was in Waipahu.
Economic research firm IHS Global Insight predicts that the added stimulus will mainly shift buyer demand from the second half of next year to the first half of next year.
(resources: Honolulu Board of Realtors, Honolulu Advertiser)
Kauai-born brothers Arist and Max de Wolff returned to Hawaii a few years ago to work in the family business of asphalt paving. Their small company, Alakona Corp, has a reputation as a specialist for commercial, government and private projects.
After researching the latest industry products and trends, they invested $1 million in supplies and equipment to manufacture a foamed asphalt base that is a “green” alternative to traditional hot-mix asphalt. It is 80 percent as strong as traditional asphalt, depending on how thick it is laid, but costs up to 50 percent less to produce, according to Betsy Wilson, who in addition to being the mother of Arist and Max is Alakona’s majority owner and president. Called Green Mix Hawaii, they started using the product this past spring.
Alakona paid about $500,000 for the German-made equipment, called the Wirtgen KMA 200. Using a cold process, it mixes reclaimed or recycled asphalt with foam to make the base — the heavy layer of material laid between the road surface and the ground — needed to keep roads durable. The resulting foamed asphalt can be stored for up to a month, unlike hot asphalt,which needs to be used immediately after it is made, before it cools. It also qualifies for innovation and design credits for LEED certification.
The company's projects include paving work for Windward Mall, Costco at the Hawaii Kai Towne Center and the Bluestone condominiums in Lanikai. Its largest project was repaving the entire entryway, approximately 100,000 square feet, for Kamehameha Schools’ main Kapalama campus last year.
Commercial clients such as shopping mall owners and condominium developers account for half of Alakona’s business. State and city government and the military make up 35 percent while residential clients comprise the remaining 15 percent. “We just do what we do, which is promote sustainability and use new and proven technologies,” Wilson said.
(resource: Pacific.bizjournals.com)
Pierre Omidyar, eBay founder and Kahala resident and philanthropist, is planning to launch a local online news service, focused on public interest and civic issues affecting Hawaii's communities.
The venture, scheduled to go live early next year, will present original, in-depth reporting and analysis of local issues in Hawaii. The news operation will be a for-profit business and will include content generated by staff writers and citizen journalists. It will be part of the Peer News Inc. operation, the Hawai'i-based company that Omidyar and former eBay executive Randy Ching set up in 2008.
Omidyar said he will hire an editor, and for the startup he's using the help of Howard Weaver, a longtime news executive with California-based McClatchy Co.
The company will be challenged to be profitable. Thousands of online news sites have sprouted across the country in recent years in the wake of the news industry's downsizing. Only a few for-profit companies are doing well, such as West Seattle Blog and Baristanet in New Jersey.
"You need the investor of the caliber of Pierre to make this work," said Alan Mutter, a former newspaper and cable television executive who now writes a blog called "Reflections of a Newsosaur."
(resource: Honolulu Advertiser)
According to a recent survey by Move.com, 5%, or 1 in 20, Americans plan to buy a home within the next year. They are most likely to be 34 or younger and living in the South or West. About 25% of these think prices have bottomed.
Recent housing figures and homebuilder earnings support a stabilizing housing market, and concerns about the expiration of federal homebuyer tax credit are moot after Congress last week extended and expanded the credit.
Buyers who have owned in their current homes for at least five years are eligible for tax credits of up to $6,500, while first-time homebuyers -- or anyone who hasn't owned a home in the last three years -- would still get up to $8,000. To qualify, buyers have to sign a purchase agreement by April 30, 2010, and close by June 30.
The telephone poll, which included about two-thirds homeowners and one-third renters, was conducted in October by market research firm GfK. Read more at NewsGeni.us.