Tuesday, November 30, 2010

Look for These Trends in Hawaii Kai Housing in 2011

Realtor.org has published their list of the 7 trends which will have the biggest impact on housing next year.

1. Big builders are wringing the extras out of construction costs and dropping the national average cost-to-build 36% to $52 per square foot.

2. Starting in 2011, Energy Star will ramp up its efficient design and quality installation standards. To get Energy Star certification, builders will have to install the right insulation, HVAC systems, and other features related to energy efficiency correctly every time.

3. Sheds are the next evolution. As homes get smaller, a separate shed will become a popular home addition.

4. There are 81 million "Echo Boomers" who were born from 1981 to 1999, compared to just 78 million Baby Boomers born from 1946 to 1964. These children and grandchildren of Boomers will drive home-building for years.

5. By 2015, demographers say, more than two out of every five households occupied by Generation Y people born between 1981 and 1999 will be WINKs (women with incomes and no kids).

6. Make room for the "Sandwich Generation" – Baby Boomers living with both their kids and their parents. These families like having two master suites, a second cooking area, and lots of storage.  (Read my blog on the forecast for the multifamily housing industry in 2011.)

7. Baby Boomers want to keep working and continue to live where they have always lived. They want a first-floor master bedroom near the washer and dryer and lots of convenient storage.

Look for these trends in Hawaii Kai housing.  While we don't have much new construction (#1) and our square foot building prices will be higher than the national average, we fit the movement toward smaller, more energy efficient housing.  And Hawaii Kai - in fact, island wide - because of the culture's commitment to revering our elders, will most certainly follow the trend to more multi-family housing.

Contact me to look at some homes to satisfy what needs you will have next year, or to modify your housing to accommodate the changing needs of your family members.

Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
http://www.movetohawaiikai.com/
http://www.barbarashawaii.com/
www.activerain.com/blogs/abeb

Friday, November 19, 2010

Update on Lease Negotiations for Kamilonui Farmers of Hawaii Kai

After a demonstration on Kalanianaole Highway and several articles and blogs locally, regarding the price increase proposed for the leases of the farmers in the upper Kamilonui Valley of Hawaii Kai, the Kamehameha Schools, formerly known as Bishop Estate, has agreed to turn the issue over to arbitration.  Arbitration allows Kamehameha Schools and the farmers' group to each pick one appraiser, and the two appraisers mutually agree on a third.  The process could take 3-4 months.

The charitable trust broke off negotiations with the 10 farmers, and said it will settle the issue of resetting rents for the last 15 years of the farmers' leases on their 87 acres by arbitration.  The Trust also stated it is committed to keeping the land in agriculture for the next 15 years.  One would have to wonder if that means development after that time, since even now the farmers cannot pay to keep the land in its present use.

Many of the farmers are in their 80s and have farmed the land for 40 years or more.  They were relocated to the Kamilonui Valley when Henry Kaiser developed Hawaii Kai.  While rents haven't changed since they were established in the early 1970's, the farmers cannot necessarily pay more just because it is time to renegotiate.  The parcels run from 3 to 10 acres, and the farmers now pay an average of $185/acre/year.  The Trust wants to raise that to $5,200 = 28-fold increase. 

The Trust feels the farmers should have planned ahead for the adjustment to current market lease rates.  The farmers say they are willing to pay more but not beyond what they reasonably make from farming.  The small group commissioned a study from an agricultural economist, who negotiated successfully for about 200 Kona Coffee farmers on the Big Island, to assess what they could reasonably pay based on what they produce.  It found a reasonable rent would be about $1,000/year/acre, about 5 times more than current lease rent, but nowhere near the price the Trust set.  Kamehameha Schools rejected the report, and moved to arbitration.

Two tenants who opted not to be part of the small group have renewed their leases, according to the Trust.  It also said it has negotiated similar rents with several farmers who lease land not far from Kamilo Nui Valley behind Kaiser High School.

The farmers fear that such a big rent hike will put them out of business. "What else are we going to do? That's all we know, farming," said farmer Richard Higa.  Added Judy Nii, of R & S Nursery, "I don't think they realize how difficult farming is, and how small our profit margin is.  Basically they're asking us to work and give them whatever we make."

If you want to help the farmers' efforts, contact Rep. Gene Ward (R-Hawaii Kai – Kalama Valley).  He has said that he is keenly interested in keeping the Kamilonui Valley farmers on their agriculture lots, and that the Trust has not negotiated in good faith. He is calling upon the community to support the farmers.

Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
http://www.movetohawaiikai.com/
http://www.barbarashawaii.com/
http://www.barbaraabe.gmragent.com/

Saturday, November 13, 2010

New Videos for Hawaii Kai Home Buyers Released by HUD

To help consumers navigate the home buying process, the U.S. Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) have announced three how-to videos to help prospective homeowners find a home they can afford, shop for a mortgage they can sustain, and what to expect when they go to closing.  With this background, prospective home buyers will feel more comfortable contacting a realtor and selecting homes to preview.

David H. Stevens, HUD’s assistant secretary for Housing and Federal Housing Commissioner said, “The process for buying a home can appear complicated and overwhelming for many consumers. These videos will help answer the fundamental questions most people have—from shopping for their home to signing on the dotted line.”

He added, “These videos go a long way in identifying key aspects of the homebuying process that a consumer should be aware of. Our goal is to help make the process more transparent through educating consumers who in turn can make informed choices about their home purchase.”

HUD’s videos are easily accessible from both HUD’s website as well as from HUD’s YouTube channel. They include:

1.  Shopping for your Home – The home-buying process obviously starts with finding a place you’ll want to call home. This short video will instruct viewers on assessing how much of a home you can afford, working with a real estate agent and what happens once you find the home you want to buy. Housing counselors can assist home buyers and home owners on issues such as home buying, fair housing, credit issues, and foreclosure prevention.

2.  Shopping for your Loan – Once you’ve found the home of your dreams, the next step is to shop for a mortgage loan. This video will help consumers use the good faith estimate (GFE), which is a form that spells out the terms of a loan offer, to shop for the best loan for them. Consumers will learn how to use the GFE to determine how long an interest rate is available for a particular loan and how to identify key loan terms and costs of a particular loan offer. HUD suggests consumers shop and compare GFEs from multiple mortgage brokers and/or lenders in order to get the best loan for their situation.

3.  Closing the Deal – Finally, this video walks consumers through the actual closing process including how to make sure the loan they were offered closely matches what they encounter at the settlement table. In particular, HUD will walk the viewer through the HUD-1 Settlement Statement and demonstrate ways consumers can compare their actual costs with those reflected on their good faith estimate.

I can answer your questions about buying in any community on Oahu, but do specialize in Hawaii Kai real estate.  Call or email me to talk about how you get qualified and start the process to buy a home in Hawaii.

Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
http://www.barbarashawaii.com/
http://www.movetohawaiikai.com/
http://barbaraabe.gmragent.com/
www.activerain.com/blogs/abeb

Tuesday, November 9, 2010

October Real Estate Statistics - Hawaii Kai & Oahu

Here is an overview of the real estate sales data for Hawaii Kai and Oahu during October, 2011.  

Hawaii Kai
Single Family - October
2010 - 21 sales; median sales price $836,000; median days on market 25; inventory at month end 82
2009 - 24 sales; median sales price $839,000; median days on market 57; inventory at month end 87
Single Family - Year to Date
2010 - 165 sales; median sales price $833,000; median days on market 26
2009 - 154 sales; median sales price $795,000; median days on market 56

Condos - October
2010 - 18 sales; median sales price $508,500;median days on market 19; inventory at month end 65
2009 - 14 sales; median sales price $485,000;median days on market 84; inventory at month end 52
Condos - Year to Date
2010 - 173 sales; median sales price $525,000; median days on market 19
2009 - 146 sales; median sales price $490,000; median days on market 69

Oahu
Single Family - October
2010 - 241 sales; median sales price $595,750; median days on market 35; inventory at month end 1,472
2009 - 290 sales; median sales price $604,500; median days on market 52; inventory at month end 1,660
Single Family - Year to Date
2010 - 2,496 sales; median sales price $598,000; median days on market 33
2009 - 2,160 sales; median sales price $580,000; median days on market 52

Condos - October
2010 - 310 sales; median sales price $300,000; median days on market 34; inventory at month end 2,070
2009 - 394 sales; median sales price $300,000; median days on market 54; inventory at month end 2,188
Condos - Year to Date
2010 - 3,273 sales; median sales price $305,000; median days on market 32
2009 - 2,814 sales; median sales price $304,000; median days on market 53

While the trends shown here are positive, there are 2 other statistics which are very telling for our Oahu real estate market.

Months Supply of Inventory
Single Family- October
2010 - 6.2; 2009 - 7.8; 2008 - 10.0
Condos - October
2010 - 6.4; 2009 - 7.8; 2008 - 8.1

Housing Affordability Index (the higher the #, the more affordable housing is relative to income)
Single Family - October
2010 - 66; 2009 - 61; 2008 - 51
Single Family - Year to Date
2010 - 66; 2009 - 63; 2008 - 50
Condos - October
2010 - 124; 2009 - 116; 2008 - 92
Condos - Year to Date
2010 - 123; 2009 - 115; 2008 - 92

Summary:  the forces of supply and demand are definitely at work here.  As inventory decreases, there are fewer homes and condos for buyers to consider.  Those who do choose to purchase, and many can now buy Oahu housing because it is more affordable, decide more quickly and are more qualified, so days on market have decreased.  This causes the month-end inventory to be reduced, continuing the cycle and putting pressure on sales prices.  Prices in Hawaii Kai have increased for both single family and condos year-to-date, and island-wide are holding steady.  Hawaii Kai has not been affected as much as some Oahu areas by the distressed property "glut" which has driven prices down, and these areas are reflected in the island-wide sales price statistics.

How else can I explain that buyers should start looking for homes now?!  If these figures represented one month, then you could wait and watch.  But this is 10 months' worth of activity.  It's time for you to call or email me and talk about how you can purchase that home you've always wanted in Hawaii, for permanent residency, 2nd home, or investment.  Our market trends are affecting prices for all buyers.  So Search our MLS to look at areas of interest to you, and then let's start looking at properties.

Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
http://www.movetohawaiikai.com/
http://www.barbarashawaii.com/
www.activerain.com/blogs/abeb

Friday, November 5, 2010

More News on Purchase of Cultural Site in Hawaii Kai from Developer (of Hale Alii)

After I wrote last week about the developer of Hale Alii (Hale Kalai) in talks with 2 local groups to purchase some of the land by the proposed 300-unit luxury condo project at the corner of Keahole Street and Hawaii Kai Drive, the StarAdvertiser ran a story confirming the developer has agreed to sell.

The article stated that the developer "agreed to sell part of the land at the heart of the controversy to a community group for preservation...If completed, the sale will help advance the long-delayed project, which enjoyed early support from the Hawaii Kai Neighborhood Board before trouble over the cultural site erupted.

"Under the agreement, the nonprofit Livable Hawaii Kai Hui would buy five acres of the 8-acre project site for $650,000.  The 5-acre parcel is zoned for preservation use and contains ancient Hawaiian petroglyphs and other historical features connected with a pre-contact Hawaiian village.

"The condominium would still be built on the three acres as previously planned, though it is being redesigned. Construction is anticipated to begin early next year, according to the developer.

"'It's a huge turnaround,' said Ann Marie Kirk, a Livable Hawaii Kai Hui member. 'We went from being threatened with being arrested and threatened with lawsuits to a place where the community has a chance to acquire this sacred place in perpetuity. It's pretty amazing. This is so great.'"

The nonprofit hui has partnered with another nonprofit, the Trust for Public Land, to help facilitate the purchase.  The Trust has submitted applications for two $325,000 grants from the state Legacy Land Conservation Program and the city Clean Water and Natural Lands Fund.

The paper quotes Laura Hokunani Ka'akua, native lands coordinator for the trust, who said,  "the site has a rich cultural value given the presence of a heiau complex, ancient dwelling sites, petroglyphs, agricultural terraces, a coconut grove, remnants of a spring-fed well and a wetland that is home to the endangered alae ula, or Hawaiian moorhen.  'This site is really like a treasure,' Ka'akua said. 'It's in the middle of Hawaii Kai, one of the most built-out communities on Oahu. This little 5-acre property, which is walking distance from a Costco, is a reminder of our ancestral past.'

"A stewardship plan will be created to restore and preserve the site, which could include rebuilding parts of the Hawea Heiau complex some historians believe was on the site.  Though state officials believe Hawea Heiau was not located on the site, many other archeological features on the property have been well documented by surveys over the last few decades. Other features are believed to have been destroyed by previous owners of the property."

Read more at StarAdvertiser.com. (Photo above from the StarAdvertiser.com article.)

I'll stay in touch with the project so if you are interested in eventually purchasing in this development, call or email and I'll be sure to keep you up to date.

Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
http://www.movetohawaiikai.com/
http://www.barbarashawaii.com/
www.activerain.com/blogs/abeb