Sales of Hawaii Kai Condos in March

I'm holding a beautiful waterfront unit with boat dock in Kalele Kai open house this Sunday, March 27, and thought I'd catch up on other condo sales this month so far in Hawaii Kai.

Out of a total of 10 sales since March 1, three have closed in Kalele Kai.  One for $545,000, a 2/2 of 1,424 SF, and one for $605,000, a 2/2 of 1,424, SF.  The highest sale was $1,075,000, a very large unit of 2,222 SF with a 354 SF lanai, one of only ten townhomes in this prestigious complex.

Lalea reported two sales in March, one a 3/2.5 townhome for $543,000, and the other a 2/2 for $460,000.  Lalea is a pet-friendly complex close to the post office and off the main thoroughfare of Hawaii Kai Blvd.

Two sales also closed in Nanea Kai, one 2/1.5  for $540,000 of 1,179 SF, and the other a 3/2.5 townhome for $615,000 of 1,582 SF.  Nanea Kai is a new complex, built in 2003, with low maintenance fees.

One unit sold in Mawaena Kai, one of my favorite Hawaii Kai condo complexes, waterfront with great views.  This home was 3/2 with 1,296 SF interior area, and sold for $710,000 FS (many units are still LH).

The last 2 sales were one each in Mt Terrace, and Naniwa Gardens, both high rise buildings with panoramic ocean views.  All units in Mt Terrace are 2/2, with central air and no lanais.  This home sold for $675,000.   The Naniwa Gardens sale was  a 2/2 unit of 1,238 SF, with a small lanai, that sold for $469,000.  Both of these buildings offer excellent amenities.

Our market is active, loans are available, and prices are slowly rising.  Call or email me to look at some of these view condominiums for sale in Hawaii Kai.  Read about all of our Hawaii Kai condo complexes with a free report from my web site, on the condo page.

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

Cash Buyers & Hawaii Real Estate

In 2010, approximately 12% of Hawaii buyers paid cash for single-family homes, about 33% for condo sales; and 70% for vacant land.   This compares to 28% for cash home sales nationwide.  The housing markets hit hardest by the economic downturn had the highest percentages of cash transactions.

What does this mean for our Hawaii real estate market?  The cash sales could indicate several trends.  1) that investors are more active in the market; 2) that loans are harder to get, without large downpayments and excellent credit; 3) loans for land and condotels (a large portion of Waikiki sales, for instance) are historically hard to find.

If you have cash, should you use it for a real estate purchase?  With the dismal rate of interest banks and CDs & money market instruments are paying now, the bet on real estate appreciation seems a good one.  We all know that it is a buyer's market; sellers are motivated; rates are predicted to rise.  And in the Oahu real estate market, many areas seem to have turned the corner to increased prices and decreased inventory and days on market - Hawaii Kai for one.

Paying cash gives you a good negotiating position, especially for a bank-owned or short sale property.  The attraction of a quick close and no buyer qualification can be very strong for the lender.  If you are considering a higher-priced property, negotiating for a 10% cash premium can be a big savings in the purchase price.

Seven of the 10 most-expensive single-family home sales in 2010 were bought for cash, including the highest, a $22-million Kahala home.   So if you have the means, consider getting in our Oahu and Hawaii Kai real estate market now, to take advantage of the edge you will have as a cash buyer.

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

Real Estate Market Activity for Hawaii Kai & Oahu, February, 2011

The real estate market posted positive trends for both Hawaii Kai and island-wide in February.  A graph provided by the Honolulu Board of Realtors shows a steady increase in sales on Oahu for the past 3 years, both in February and year-to-date, and for both single family homes and condos.

Let me know if you would like a complete copy of the comprehensive statistical analysis of our Oahu real estate market. I can email you a .pdf file with charts and graphs, or you can request one on my web site.  Read a synopsis on my Active Rain blog.

Hawaii Kai real estate statistics showed a leveling off in February, but not a decline.  Both Single Family and Condo sales in Hawaii Kai were slow in February, with 7 home sales and 14 condos closed. This compares to 2010 with 7 home sales and 6 condo closings.

Single Family
The 7 sales ranged from $684,000 for a 3/1.5 in Koko Head Terrace to $1,600,000 for a 4/3.5 on a 10,613 SF lot in Kamehame Ridge.  There were 2 sales in Koko Head Terrace, and three of more than $1,000,000. These million-dollar sales were in NaPali Haweo, Spinnaker, and Kamehame Ridge.

Condos
The low sale was a FA unit in Mawaena Kai for $448,000, 3/2 with boat slip, main level. The high sale was $785,000 for a waterfront home in Koko Isle.  Of the 14 sales, 3 complexes had the highest number. Colony at the Peninsula, Kuapa Isle, and Lalea each had 2 sales.

As the peak real estate season approaches in Hawaii, I'd like to announce that I have upgraded the search features on both my web sites, http://www.movetohawaiikai.com/ (Search the MLS) and http://www.barbarashawaii.com/ (Home Search).  Please try them out and see if they suit your needs.  I'd like your feedback so I can be sure and tailor the search functions the way you, my web visitor, would like.  Aloha,

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

Hale Ka Lae in Hawaii Kai Ready for Buyers

The new luxury condominium project, Hale Ka Lae, has held its public open house and broker's open, and is now accepting statements of interest from buyers.  Please let me know if you want more information.  The developer is letting buyers bring their own agents, if they are represented by the Realtor from their initial visit.

"Ka Lae" in Hawaiian means "the point" which could refer to the location, on the point of Hawaii Kai Drive, or a more symbolic meaning for the development itself.

Community features will include

• Lap pool
• Lagoon-style pool
• Extra storage, big enough for surf boards
• Private theater with stadium seating
• Indoor golf simulator
• Acoustically-insulated entertainment center
• State-of-the-art fitness center
• His and hers saunas
• Rooftop lanai with BBQ dining pavilions
• Outdoor lounge area with jacuzzi
• Private dining room
• Library
• 3 visitor guest suites
• Adjacent to 5-acre park
• Concierge services
• Gated and secure

There will be 4 individual enclaves with their own elevators, outdoor lanais, central air, energy-rated windows, top-of-the-line interior materials, gourmet kitchens, and luxurious baths. 

Hale Ka Lae will also be pet-friendly!.

I'll keep you informed of updates, and please call or email me if you have an interest.  I'd be pleased to email you copies of the floor plans and more details on the residence features.

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

Working with a Professional Realtor more Important Now than Ever Before

A recent study conducted by a multiple listing service in New Jersey reported 95% of consumers felt working with a real estate professional is just as important, if not more so, than it was even a few years ago.  The survey, Keepin' It Real, can be found on the MRIS web site.

Most consumers understand that now is not the time to complete a real estate transaction on their own.  The market is too unsettled and prices too variable neighborhood to neighborood.  In order, they ranked the following qualities as critical in choosing an agent:

• Trustworthiness
• Experience
• Willingness to look out for a client’s interest
• Expertise in negotiating contracts
• Responsiveness
• Familiarity with contracts
• Knowledge of the local community

Additionally, 68% of buyers and sellers rated their agents 6 or 7 on a 7-point scale. 48% found their agents by a referral. 80% said they would in turn recommend their agents.

Consumers today want more than simple guidance.  They can search homes for sale and community information extensively online, but want an expert they trust to take them through the entire process of buying or selling real estate.  Yet, despite all of the tools and resources available, when it comes time to actually buy or sell a home, there is nothing more valuable than the industry knowledge, expertise, and guidance a real estate professional offers.

I've been living and working in Hawaii Kai for more than 20 years, and can give you the insider view of all our communities.  Call or email to ask me your questions about Hawaii Kai real estate.

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

Homeownership Still a Large Part of the American Dream

A recent survey conducted by Trulia.com, on American attitudes towards homeownership, showed conclusively that we still feel homeownership is part of the American Dream.  “Contrary to popular belief, the American Dream of homeownership has not turned into an American nightmare," said Pete Flint, CEO of Trulia.

Conducted by Harris Interactive, the survey of 2,079 adults 18 and over, found 70% view homeownership as part of their own American Dream, and 78% feel their homes are the best investment they ever made.

Although many of today’s young adults came of age during the recent housing crash, 26% say their views on owning a home have become more positive over the past six months. 88% of 18-34 year old renters aspire to be homeowners, making this new generation of buyers crucial role in the stabilization of today’s real estate market.  While these buyers are in no hurry to purchase. 70% of renters in the Western region plan to buy a home eventually.

“During the housing bubble, the American Dream of homeownership was beyond reach for many young adults. Stuck with student loans and entry-level jobs, many had resigned themselves to being lifelong renters. But the tide is changing—Millennials are now today’s most serious home buyers,” said Tara-Nicholle Nelson, Consumer Educator for Trulia. “Unjaded and largely untouched by the effects of the housing crash, this new generation of buyers will no doubt lead America from its current housing slump towards true recovery.”

In our Hawaii Kai real estate market, there are million dollar estates and affordable condos.  Call or email me and let's talk about options for making your American Dream of Homeownership come true.

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

Update on Hale Ka Lae, New Condo Development, Hawaii Kai

Last week I stopped by the Broker's Open given for Hale Ka Lae, the upscale new condo development that has been so many years in the making, at 7000 Hawaii Kai Drive.  Here is the latest news.

In Phase 1, there will be 242 "beautifully crafted condos designed for the modern lifestyle and energetic spirit."  Floor plans are "generous" - 992 - 1233 SF for a 1 bedroom/1.5 bath home ranging to 2,886 SF for a 3 bedroom/3.5 bath penthouse unit.

If what they promise does come true, Hale Ka Lae will be quite lovely.  Kitchens feature top-of-the-line Miele German appliances, and the entire home will be "upgraded" so there will be no additional upgrades to purchase.  The kitchens and baths are gorgeous (samples in the showroom).

Prices start at $685,265 for a one bedroom and go up to $3,393,568 for the 3/3.5 penthouse.

Feb. 19 is the launch date for their web site and going public.  Please let me know if you have an interest, so I can sign you up on their list.  Remember, to have a personal agent in new construction, that agent (hopefully me) needs to be involved from the very first interest you show.  Watch here for follow up posts on the construction and progress of Hale Ka Lae.

Barbara Abe, Realtor

barbara@barbarashawaii.com

808-226-2537

http://www.movetohawaiikai.com/

http://www.barbarashawaii.com/

www.activerain.com/blogs/abeb

Demographic and Economic Forces in the Hawaii Real Estate Market

Even in the paradise we call Hawaii, a recession, which is creating consumer behavioral changes, is colliding with shifts in the demographic distributions of the population.  These forces will affect the real estate market both at home and in the rest of the country, and indeed, worldwide, in unforeseen and extraordinary ways.  Americans who have dealt with the spectre or reality of job loss, home loss, and declining real estate values are justifiably skeptical about the benefits of homeownership.  The financial impacts of the housing crisis will take years to disappear from the country's real estate markets.  In addition, Americans have to consider options unrealized in the last generation.

As reported by RISMedia.com, in an article by Rent.com, "The Joint Center for Housing Studies of Harvard University reports that real median household incomes across all age groups under 55 have not increased since 2000. It’s been posited that this will be the first decade in 40 years where real median household incomes will end lower than where they started. This has the biggest implications for the baby bust generation (born 1966-1985) as they approach what should be their prime earning years, and for younger baby boomers who will be facing a vacuum of demand from younger generations when they want to retire, sell the family home and downsize. Over-building and spiking foreclosures have already produced an over-supply of large suburban homes for which there is little demand or ability to purchase. Gen X and Y will not do much to help solve this problem.

"Aging boomers will be reluctant to sell their homes for two reasons. One, they may be underwater on their mortgages and waiting for the market to rebound and two, they are healthier than their parents’ generation and will likely delay the move to retirement community living. Only time will tell if a market will exist for their homes when they are ready to sell. However, the income constraints and lifestyle demands of a shifting population may dictate a very different future.

"The Gen Y population, or echo boomers (born 1986-2005), the largest pool of renters, is now in their prime rental years, but many have found themselves jobless with no way to pay the rent. Forced to move in with mom, dad or friends, this twenty-something crowd has been hard hit by the recession. Nonetheless, they are poised to redefine the American dream for generations to come. When employment growth returns, they will be a key driver of rental demand.

"All in all, there are some big changes afoot in the housing market that shifting demographics will continue to amplify. The changing needs of an aging baby boomer population as well as the demands of the burgeoning Echo Boomer generation will require that the real estate market respond in new and different ways."

Forecast demographic shifts will bring dramatic changes to the housing market.  Both retiring baby boomers and maturing echo boomers are expected to move away from suburbs into more urban, mixed use, mixed age areas with a sense of community, easy access to services and transportation.

However, achieving this dream for the younger segments may be financially out of reach.  The over-built suburbs have been the hardest hit by home devaluation, and so represent the greatest values for would-be homeowners.  Urban living may be financially out of reach.  For Generation Y'ers who prefer an urban lifestyle, it is not clear yet how this economic conundrum will be resolved.

The RISMedia article concludes, "What is clear is that the growth of an economically challenged echo boomer generation will make affordable housing even more important.."

Our housing market in Hawaii is unique in the country, because of the supply/demand equation of increasing housing with the limited resource of buildable land.  Our climate and lifestyle encourage immigration, but our isolation brings greater living and building costs.

I certainly don't pretend to see into the future.  The next decade or two will bring together forces of change which will affect much more than the real estate market.  I do feel, however, that being aware and up-to-date on Hawaii housing values and neighborhood changes will make you a wiser investor or seller, when you do decide to enter the real estate market.  Call or email me if you'd like to talk about your own community and sales trends in the Islands.

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

Trends in Housing for the 55+ Generation

A joint study by the 50+ Housing Council of the National Association of Home Builders (NAHB) and the MetLife Mature Market Institute shows the recession has made 55+ buyers more practical when selecting a new home. Design considerations have become less important, and financial concerns have become more prominent.  “By the year 2020, as Baby Boomers move into this age bracket, almost 45% of all U.S. households will include someone at least 55 years old,” said David Crowe, NAHB’s chief economist. “The number of those households seeking housing better suited to their changing needs will therefore rise dramatically.”

The study, “Housing Trends Update for the 55+ Market,” explores recently released housing data from the Census Bureau’s 2009 American Housing Survey (AHS) on the 55+ demographic. The report focuses especially on households living in active adult communities.

Previous studies from these two organizations found that most 55+ buyers depended on home sale proceeds to finance a new purchase. The most recent data shows that option diminished during the economic downturn.  In 2009, only 55% of new age-qualified active adult home buyers reported that their down payment came from a previous home sale, significantly down from 100% of respondents in 2005 and 92% in 2007. In 2005 and 2007, no active adult community buyers reported having to tap cash or savings for a down payment. In 2009, 45% of the average buyer’s down payment came from cash or savings.

The desire to be near family and friends is the mature mover’s overwhelming motivation, the report noted. The design, amenities and appearance of the residence and the community remain important, but less so than before the recession. Buyers who fall into the 55+ age range that are moving into rental homes, both multi-family and single-family, cited a desire for less expensive housing as second in importance to living near friends and family.  Proximity to work also increased in importance, as more Boomers work well into traditional retirement years.

Hawaii Kai has both retirement communities and many homes where you can age in place.  Call or email me to discuss your plans and options.

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

Top 5 Home Improvement Projects for Return on Equity in your Hawaii Kai Home

HomeGain.com has released a recent survey of returns you can expect from home improvement projects under $5,000, as recommended by Realtors across the country.  They are:

•Cleaning and de-cluttering ($290 cost / $1,990 price increase / 586% ROI)
•Lightening and brightening ($375 cost / $1,550 price increase / 313% ROI)
•Home staging ($550 cost / $2,194 price increase / 299% ROI)
•Landscaping ($540 cost / $1,932 price increase / 258% ROI)
•Repairing electrical or plumbing ($535 cost / $1,505 price increase / 181% ROI)

Cleaning and de-cluttering continues has ranked as the top suggested home improvement since the survey was originally conducted in 2000.  It was recommended by 99% of real estate professionals, costs less than $300, and returns a value of nearly $2,000 to the home's sale price.  This is a 586% return on investment.  Cleaning and tidying up improve a home's first impression, its curb appeal, and get the seller in the mood for all the cleaning required to move.

Others on the 10 low cost, do-it-yourself home improvements list were updating electrical systems and/or plumbing, updating the kitchen and bathrooms, replacing or shampooing carpets, painting interior walls, repairing damaged floors, and painting the outside of the home.

The home improvement projects with the highest price increases to a home's resale value are updating the kitchen, followed by painting the outside of the home, and home staging.

If you have questions on what repairs or projects to undertake in order to get your Hawaii Kai home ready to sell in 2011, just call or email me.  I've been helping buyers and sellers in Hawaii Kai for more than 20 years, so have a good feel of what projects would be most beneficial.

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

Home Buying in Hawaii Kai in 2011 - New Regulations that will Affect You

Thanks to a combination of rising mortgage rates, tighter underwriting guidelines, and sweeping government regulation, home buying is unlikely to get any easier and may, in fact, get much more difficult in 2011.  Looming over the mortgage market are provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that have yet to be finalized. Among them is a requirement that mortgage lenders maintain some “equity" in the mortgages they originate, by holding at least 5% of the credit risk, rather than bundling the loans and selling them off entirely.

The goal is to discourage a repeat of risky past practices, but the legislation makes an exception to the risk-retention standard for what is labeled a “qualified residential mortgage.” (QRM) It is the still-unspecified definition of this type of loan that has lenders scrambling.  “People have some very different ideas of how to define this,” said Michael Fratantoni, vice president of research and economics at the Mortgage Bankers Association. “Some would say if it doesn’t have a 30% down payment, it’s not a QRM. For a first-time home buyer, that would really be eye-opening. It definitely has the potential to turn the market upside down. This could dramatically tighten underwriting much more than what the lenders have already done. It’s going to make it even tougher to work through the housing overhang.”

“If you have to have 30% down, the American dream would become the American fantasy,” said one lender in Illinois.  Additional regulation on mortgage bankers will mean a thinning of their ranks, weeding out the unscrupulous players. But it also will lessen consumers’ ability to comparison-shop widely for the best home mortgage product.

Another wrinkle to the mortgage market is that beginning in March, Freddie Mac will raise fees for mortgages sold to Freddie that carry higher loan-to-value ratios. The additional fees will vary depending on the borrower’s credit score and the loan-to-value ratio, but in some cases the upfront fees will increase by as much as 0.75% of a loan’s balance. If a lender passes along a 0.25% fee to the borrower, it could add about $10 to the monthly payment on a $200,000 mortgage, according to Freddie Mac.  In late December, Fannie Mae announced its own series of considerable loan-level price adjustments, effective April 1, for mortgages with greater than a 60% loan-to-value that will apply even to consumers with credit scores above 700.

Rates also are rising.  The forecast for 2011 for a 30-year, fixed-rate mortgage is slightly under 6%. That could definitely change the affordability ratios of buyers who were approved when the rates were 4.25% this past year.

If you want to buy in Hawaii Kai this coming year - and see the market numbers for why you shouldn't wait - then find a reputable lender and get pre-approved, not just pre-qualified.  Know your buying power and then start looking.  I can recommend experienced Hawaii lenders and email you information on any Hawaii Kai condo or neighborhood.  Let's get started!

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

Hawaii Kai December & Year-End Real Estate Sales Numbers Encouraging

Read my Active Rain Blog for the actual numbers, but they tell a very good story.  Prices are rising, numbers of sales are up, days on market and inventory are down.  This means for you - if you are a Buyer - you should start looking, now.  Rates have also started up, so your affordability was or is at its most advantageous for you to purchase a home or condo in Hawaii Kai.

Highest 2010 sale, Koko Kai

Highest December Sale, Portlock

Here are photos of the highs and lows for Hawaii Kai (always at least as interesting as the numbers):

Highest 2010 condo sale, Kalele Kai

Highest December condo sale, Mawaena Kai

Request reports on any condo complex or Hawaii Kai neighborhood on my Hawaii Kai web site.  Then call or email me with questions and let's start looking for a home that fits your needs.

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

Exterior Projects Have the Best Remodeling Value

As part of the 2010-11 Remodeling Cost vs. Value Report, REALTORS® recently rated exterior replacement projects among the most cost-effective home improvement projects, demonstrating that curb appeal remains one of the most important aspects of a home at resale time.  These are especially important projects in Hawaii homes, because of the time spent outdoors.

“This year’s Remodeling Cost vs. Value Report highlights the importance of exterior projects, which not only provide the most value, but also are among the least expensive improvements for a home,” said National Association of REALTORS® President Ron Phipps. Nine of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects. The steel entry door replacement returned the most money, with an estimated 102.1% of cost recouped upon resale; it is also the only project in this year’s report that is expected to return more than the cost. The midrange garage door replacement, a new addition to the report this year, is expected to recoup 83.9% of costs.

The 2010-11 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 13th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood LLC, was completed in cooperation with REALTOR® Magazine.  REALTORS® provided their insight into local markets and buyer home preferences within those markets. Overall, REALTORS® estimated that home owners would recoup an average of 60% of their investment in 35 different improvement projects, down from an average of 63.8% last year. Remodeling projects, particularly higher cost upscale projects, have been losing resale value in recent years because of weak economic conditions.

According to the report, replacement projects usually outperform remodel and addition projects in resale value because they are among the least expensive and contribute to curb appeal. Various types of siding and window replacement projects were expected to return more than 70% of costs. Upscale fiber-cement siding replacement was judged by REALTORS® the most cost effective among siding projects, recouping 80% of costs.   A wood deck addition, tied with a minor kitchen remodel, would return an estimated 72.8% of costs.

The top interior projects for resale value included an attic bedroom and a basement remodel. Improvement projects are expected to return the least are a midrange home office remodel, recouping an estimated 45.8%; a backup power generator, recouping 48.5%; and a sunroom addition, recouping 48.6% of costs.

Although most regions followed the national trends, the regions that consistently were estimated to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington; the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.

Call or email me to discuss what remodeling you might want to do to get your home ready to sell in 2011.

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

Hawaii Kai is a Perfect Example of the Growing Real Estate Trend of the Importance of Community

A shift is occuring in American housing, away from the supersized developments that dominated the industry leading up to the recession. Developers built under the mantra “the bigger the better”—from the size of homes to the number they could fit on plots in outer-ring suburbs where land was plentiful. Developers couldn’t pave streets fast enough to satisfy the demand. They offered sports courts, nature trails, wine-tasting community rooms, and huge master suites.

No more.  Now, it's about restraint. “It’s a total shift in people’s perception of what they feel is important,” market analyst Ryan Jones said. “In the 2000s, it was excess on every scale. Now people have reorganized and reassessed what’s important.”  What’s important today, according to several developers, is living close to work, knowing your neighbors, and feeling a sense of security about the community.

During the boom, buyers wanted to be the 1st to buy in a new neighborhood, because prices were assumed to rise as the community developed.  Now consumers want - and builders are listening - a small number of lots per development so they don't have to wait long for new neighbors. 

The shift has been driven by many economic factors, such as land prices, building prices, and the scarcity of money for developers from banks.  Developers are trying to reduce exposure to big losses that come with investing in big projects. Some developers simply don’t have the capital to invest in larger pieces of land that might take years to sell out.  And smaller projects provide less risk from changing market conditions.

This tenent is true for buyers as well, who want less risk, and ways to save money, such as lower gas usage for a commute or to take the kids to school, and energy-efficienct homes.  And they want a stronger sense of community.

One of the many reasons Hawaii Kai has held its market value the last few years is because of this sense of community, the very real Sense of Place.  There is nowhere else in the Islands like it, developed around ocean access, with a marina, and all the shopping and recreational amenities you want close to home in Hawaii.  Plus it is only 15 minutes to cultural events in Honolulu, the outdoor concerts in Kapiolani Park, the schools of Punahou, Iolani, and UH, shopping at Ala Moana, and so much more. 

East Oahu has very little buildable land left, and what has been developed in the last few years has definitely followed the national trend toward smaller, more cohesive, neighborhoods.  Add that to the overall sense of community in Hawaii Kai, and our part of Paradise becomes a truly remarkable place to live.

Call or email me to find out how you can enjoy our Hawaii Kai lifestyle.

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

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

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/

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

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

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

Sacred Land Adjoining Hale Alii (Hale Kalai) Project in Hawaii Kai May be Sold

KITV.com published a story on the possibilities of the Trust for Public Land and Livable Hawaii Kai Hui purchasing land that has been part of the proposed Hale Alii condo development, at the corner of Hawaii Kai Drive and Keahole Street.  I only know what I read on the post, so will reprint it here as an update to my readers.  If you go to their news page, there is also a video of the Hawaii Kai neighborhood board meeting.

"A Hawaii Kai neighborhood board meeting turned out to be the venue for an update about the future of development near the corner of Hawaii Kai drive and Keahole Street.

“'There is an opportunity here and the Trust for Public Land and the Livable Hawaii Kai Hui are taking steps to purchase the land,' said neighborhood board chairman Greg Knudsen.

"The groups are asking for the board’s support as it negotiates with the owners of the land over the five acre parcel.

"The Hale Alii project was envisioned as a luxury project with some 133 units. But work crews doing initially site work damaged an area considered sacred by some.

“'Parts of the archeological complex were bulldozed and portions of the wetland which is habitat to the endangered alaula bird were filled in, but this new management is apologetic and is looking forward to working with the community group and public,' said Laura Hokunani Ka’akua of the Trust For Public Land.

"The groups say talks are very preliminary and they hope to get the money to buy the land from the state and county. They are encouraged by the turn of events that could keep the land protected for future generations.

“'I think the developers are finally realizing that to have something sacred next to their development actually improves their site,' said cultural practitioner Kaleo Paik."

If you are interested in learning more about the status of Hale Kalai, call or email me and I'll try to get an update for you.

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