Click for a Cause in Hawaii Kai

The holiday season makes me think of less fortunate folks who need our help. Use your computer and make a difference with a click of a mouse at these sites (no purchase necessary):

http://www.goodsearch.com/: the site donates about a penny per search to any one of 83,000 nonprofits you choose. GoodSearch.com partners with more than 1,000 retailers, donating up to 30% of the purchase price to the cause of your choice.

http://www.freerice.com/: the site feeds the hungry as you build your vocabulary. For every word you define correctly, this UN-World Food Programme site donates 10 grains of rice to countries coping with hunger. This has amounted to 68 billion grains of rice so far.

http://www.freekibble.com/: the site gives food to dogs in shelters when you correctly answer a daily trivia question.
http://www.freekibblekat.com/: same for kitties.

Breast Cancer site: click to give a free mammogram.

I put the icons on my desktop and click throughout the day - put it right on top or next to one you use every day, then you won't forget. If there are others I should add to this list, please comment on the blog or email me so we can spread the aloha around the world.

Happy Holidays,

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

Island Dog Supports Hawaii Kai Dogs

Island Dog, a quarterly print magazine which just celebrated two years of publishing, supports dogs island-wide, but is a great resource for Hawaii Kai dog owners. Their online version only hints at the great information inside the magazine, which you can find at these locations.

The publication has "gone green" - recycled paper and soy-based ink help create a smaller carbon footprint.

In case you are out walking your pet in our beautiful holiday weather (remember, it's snowing in a large part of the rest of the country), here is a list from Island Dog of Oahu Dog Parks:

Bark Park
Diamond Head Road and 18th Avenue
Open daily during daylight hours
http://www.barkpark-honolulu.org/

Hawaii Kai Dog Park
Next to Hawaii Kai Park & Ride
Open daily daylight hours
http://www.hui-ilio.com/

McInerny Dog Park
Hawaiian Humane Society
2700 Waialae Ave.

Mililani Dog Park
Mililani Mauka District Park at Park & Ride
95-1069 Ukuwai Street
Open daily during daylight hours
Closed Wednesday mornings for maintenance

Moanalua Dog Park
Moanalua Community Park, off Pu'uloa Rd.
Open daily during daylight hours
Closed Tuesday mornings until noon for maintenance
http://www.moanaluadogpark.org/

Visit the pet page on my web site for Hawaii Kai and island pet news and links. See you at the Hawaii Kai dog park -

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

FHA 203K Program can Help You Buy a Home in Hawaii Kai

Have you found a home in Hawaii Kai you'd love to buy but didn't have the finances to purchase and renovate? Consider the 203K Program. The FHA Section 203K program is specifically designed to rehabilitate and repair single-family homes, 1-4 unit multi-family properties, and mixed-use real estate with funds used for the residential portion . The 203K is a single mortgage loan that provides funds to purchase a home and make repairs and improvements.

In many cases, homes that would qualify for the 203K loan are in nice areas but have aesthetic problems. This program—because the home improvements are built into the loan—opens the whole market to the average home buyer.

From Lowe's (a 203K Home Improvement Specialist) web site, here are some of the 203K benefits:

• Only 31/2% down payment required, which can be gifted by family members
• More flexible qualification requirements allow those with less than perfect credit to purchase a home at competitive rates
• A single loan for both purchase and improvement of your home means you make only one loan application and pay one set of closing costs – saving you time and money
• FHA loans are assumable and there are no prepayment penalties
• An FHA Energy Efficient Mortgage (EEM) can allow you to qualify for a larger mortgage to add additional improvements that will lower your utility expenses
• By including cost of renovation in your home mortgage, you pay for these improvements over time at a much lower interest expense than conventional alternatives
• Rather than paying a premium for a home in “perfect” condition, take advantage of the great prices available on foreclosures or other homes on the market that are in need of repair or remodeling
• Instead of paying for a previous owners improvements you may not desire, invest instead in exactly the features, colors, styles, etc. that suit your tastes and needs
• Enjoy the opportunity to live in an up-to-date home in a great location closer to work, shopping, cultural activities and more

Visit Lowe's page of FAQs to learn how easy it is to get started with the 203K program.

Contact me to introduce you to a lender who can guide you through the mortgage process. I'll help you find the property. If you want a project - you don't have to do the work yourself - and see the great values available now in Hawaii Kai - contact me and let's get started.

Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
www.movetohawaiikai.com
www.barbarashawaii.com

New Rules will Help Short Sale Process in Hawaii Kai

The Treasury Department has announced sweeping new rules which will help financially troubled homeowners who need to sell but can't get a price high enough to pay off their mortgages (a short sale). Homeowners will even get $1,500 to help cover their moving costs.

The plan is designed to help homeowners who don't have the income or debt levels to qualify for a loan modification under the Obama administration's $75 billion Making Home Affordable program. The plan establishes timelines, a standard process and documents, and cash incentives for participation, and is designed to accelerate the necessary agreements between lenders, real estate agents, buyers and sellers.

Short sales reduce the damage to the borrowers' credit record and save the lenders the cost of foreclosure. Short sales also help neighboring property values because the sales price is usually higher than what the house would fetch in a foreclosure auction.

About one in 10 home sales this year was a short sale, or an estimated 500,000 sales, according to the National Association of Realtors. About one in 10 home sales this year was a short sale, or an estimated 500,000 sales, according to the National Association of Realtors. In areas like Las Vegas, southern Florida and California, the ratio is far higher.

To qualify under the new guidelines:
• The property must be the homeowner's principal residence.
• The homeowner is delinquent on the mortgage or default looks likely.
• The loan was made before Jan. 1 this year and is less than $729,750.
• The borrowers' total monthly mortgage payment exceeds 31 percent of their before-tax income.

Mortgage companies don't have to launch the program until April 5, 2010, which may not help borrowers who are in default now. The program is also voluntary for lenders who hold second mortgages, such as home equity loans or piggyback loans. The Treasury Department has estimated that about half of homeowners in default have more than one loan on their properties.
While those other secondary debt holders can receive up to $3,000 to release their claims on the property, that may not be enough for larger creditors who would rather go after the borrower.

Even with its drawbacks, the new rules should substantially streamline the process and provide a lifeline to many sellers struggling with mortgage payments. Our Hawaii Kai foreclosure rate is lower than most areas of the island, but we have our share of sellers who do need help.

Contact me if you want to sell and find out how the short sale process works, and what you can reasonably expect for your property. Remember, you do have options to foreclosure.

Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
www.movetohawaiikai.com
www.barbarashawaii.com

Hawaii Kai Condo Market may face challenges

Proposed changes to a federal mortgage loan program that now accounts for a substantial number of all new home loans have Hawai'i lenders concerned that many condominiums in the state could become ineligible for such lending. The proposed changes stem from an effort by the U.S. Department of Housing and Urban Development to reduce fraud and risk in lending through the Federal Housing Administration.

The Mortgage Bankers Association of Hawaii fears that 545 Hawai'i condo projects will automatically lose their eligibility for FHA lending next year under revised rules proposed by the agency.

FHA loans are available for single-family home and condo purchases. For condos, the loans are limited to projects that meet certain requirements, such as those with no less than 50 percent of units occupied by owners, no more than 15 percent of units delinquent on association fees and no more than 10 percent of units owned by one investor. But in some cases these requirements haven't been reviewed after condos obtained initial FHA lending approval years or decades ago.

Under proposed rule changes, all condos automatically would be removed from FHA's approved lending list two years after a project was placed on the list. In Hawai'i, that would mean virtually every condo project on FHA's approved list, or 545 projects, would be removed.

The Mortgage Bankers Association of Hawaii had asked that previously approved condos in the state remain on the FHA's approved list for two years to allow time for more orderly reapprovals. Initially, the removal was slated to take effect Dec. 7 upon implementation of the new rules. However, recently the agency granted a grace period of one year before condos with old approvals will become ineligible for FHA loans unless they are reapproved.

Contact me for more information on how this proposed change may affect your purchase or sale of a Hawaii Kai condo.

Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com
www.movetohawaiikai.com
www.barbarashawaii.com

(resource: Honolulu Advertiser)

Hawaii Kai Real Estate Outlook for 2010

Home sales will increase 15 percent to about 5.7 million units and REALTOR® income will be up 20 percent in 2010, predicts NAR Chief Economist Lawrence Yun. He credited the home buyer tax credit with stimulating sales on the lower-end of the housing market this year, bringing up to 400,000 first-time buyers into the market who wouldn't have bought otherwise. That influx tightened inventories of starter homes, shored up prices, and helped reduce households' fear over continuing price drops.

This cycle will continue now that the federal government has extended the credit to mid-2010 and expanded it to make a smaller credit available to repeat buyers and to households with higher incomes. “The key is stabilizing prices and preserving household wealth,” he says.

More applicable to Hawaii home prices, Yun predicts the supply of homes to stabilize at the historic norm of six to seven months. Homes above $500,000 will remain elevated in the near-term, but that weakness will be offset by a hefty drop in starter-home inventories, which are running at about a five months supply. The tightening inventory at all price points will help improve market performance by bringing supply into better balance with demand, but the added sales, particularly on the higher end, will also increase the number and quality of the market comparables used by appraisers to assign valuations. Once appraisals improve, foreclosures will ease, blunting their drag on the market and making it less likely that Fannie Mae, Freddie Mac, and even FHA will need help from the taxpayer.

The good news is that the 1st Time Buyer Tax Credit has been extended, and a Homeowner Tax Credit is now available. Contact me for details.

Barbara Abe, Realtor
barbara@barbarashawaii.com
808-226-2537
www.movetohawaiikai.com
www.barbarashawaii.com

Real Estate Sales for October, 2009 in Hawaii Kai and Oahu

Plenty of homeowners and economists are happy with the news about October, as sales reached a 19-month high island-wide, as reported by our Honolulu Board of Realtors (HBR). Still fewer in number than the recent hooming years, volume continues to build from the low levels of late 2008 and early 2009. Condo sales as well as single family home sales increased.

The current rate of sales for both single-family homes and condominiums were both slightly up in October, which is truly encouraging in light of the current economy," said Sandra "Sam" Bangerter, president of the Honolulu Board of Realtors. "The median prices for single-family homes were up a bit and down for condominiums, but still within relatively stable price ranges. The first-time homebuyers federal tax credit has been helpful in raising buyer awareness."

There were 281 sales of single-family homes during October, or almost 16 percent more than a year earlier. It was the highest volume since March 2008, or 19 months.

• The median price of single-family homes was $605,000. Although that was down from last October's median of $625,000, it marked a high point for this year. The median is the point where half of the prices are below and half are above.
• There were 381 sales of condominiums, the most since May 2008, or 17 months.
• The median condominium price was $295,000. That compared with the year earlier median of $325,000.

Kapahulu/Diamond Head, Kahala and Hawaii Kai posted their highest single-family home sales of the year.

In October, months of remaining inventory for single-family homes fell to 4.6 from the prior year's 9.8, according to the HBR. Likewise, remaining condominium inventory fell to 4.8 months from the year-ago 8.7 months, HBR said.

The Board publishes very extensive statistics for every community on Oahu. Contact me for your free copy.

Barbara Abe, Realtor
808-226-2537
barbara@barbarashawaii.com