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

Where to Recycle your Hawaii Kai "Stuff"

Honolulu Magazine published a useful article about where to give away extra stuff left after the Christmas holidays and during that end-of-year housecleaning.  As our landfills fill up, reuse and recycle becomes ever more important.

Batteries - Home Depot stores accept cell phone, power tool, rechargeable, and alkaline batteries.  Best Buy will also accept batteries (see below).

Bikes - Donate any bike with good, usable parts to Kalihi Valley Instructional Bike Exchange (K-VIBE), a non-profit bicycle shop and intervention program for the at-risk youth of Kalihi Valley.  1638 Kamehameha IV Rd.  808-791-9480.

Blankets, Towels, Pet Supplies - Hawaiian Humane Society needs old linens and pet supplies like leashes and toys.  2700 Waialae, 808-946-2187.

Building materials - Re-Use Hawaii accepts lumber over 5' in length, doors, windows, sinks, bathtubs, new tile, cabinets, hardware, and lighting fixtures.  Materials must be pest-free, mold-free, without termite damage, and reusable.  The non-profit offers a pickup for large amounts, or drop off at their warehouse, 30 Forrest Ave, 808-953-9949.

Electronics - Best Buy inkjet cartridges, recycles fans, vacuums, DVD players, home and car stereos, cell phones, MP3 players, cables and TVs. 

Eyeglasses - the Lions Club, WalMart, Costco, LensCrafters, Sunglass Hut, and Sears Optical all take used prescription eyeglasses and sunglasses.  Visit OneSight.org. Costco will also take used hearing aids.

Paint - Honolulu Habitat for Humanity accepts new, unopened, unrusted cans of latex paint or stain.  They sell the cans at their ReStore in Waipahu to support their efforts in the construction of new homes for low-income families.  ReStore also accepts donations of usable household items to sell or use in its business.  94-559 Uke'e St, 808-538-7070.

Most everything can be donated at the monthly, traveling Aloha Aina Earth Day held at various island locations by participating schools and nonprofits.  Contact Rene Mansho, 808-306-1876, http://www.opala.org/.

Thanks to Honolulu Magazine's January issue for this information.

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

Update on Honolulu Rail Project

The City Council has cleared the final environmental requirement to begin construction of Honolulu's rail system, by approving a Special Management permit.  The perit allows the $5.5 billion project to be built near coastal management zones.  "It allows us to technically break ground, and clears the way for all the other permits we need to get," said Wayne Yoshioka, interim Department of Transportation Services director.  The project will extend 20 miles, and 1.6 of those are in coastal management areas.  The city hopes to break ground in March.

The permit is likely to be the last requiring Council approval. The project still needs several others that will be handled directly through the city Department of Permitting and Planning.  Last week, the Federal Transit Administration issued a record of decision, clearing the project to begin relocating utilities and negotiating property acquisition.

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

New Restaurant in Hawaii Kai - Koa Pancake House

After reading the review by K5thehometeam.com, I had to give Koa Pancake House in the Hawaii Kai Towne Center a try.  The restaurant opened in December, and is doing a great business.  This is their 7th location on Oahu, offering an affordable with plenty to eat.

The K5HomeTeam wrote, "The griddle is loaded with pancakes for this new edition of the Koa Pancake House in the Hawaii Kai Towne Center. That's the one with Costco and Ross. Their kitchen never stops moving. They serve eggs, omelets, crepes, waffles – just about anything you want from 6:30 in the morning until two in the afternoon...Prices start at $3.50 for a short stack of pancakes or some waffles. But they also serve up burgers, sandwiches and plate lunches. They also have eggs benedict and strawberry pancakes."

So today I went for lunch with a friend from East Oahu Realty at noon.  It was already almost full.  10 minutes later it was completely full, and there were people standing waiting for tables. The menu is huge and we both ordered special of the day #1, which was omelette with portugese sausage, mushroom, spinach and cheese.  There was a choice of pancakes, rice, toast or home fried potatoes and we both had the potatoes.  It was very good, too much for me but I did make it almost through, just a few potatoes left. We left at 1:20 and by then there were a few empty tables.

Koa Pancake House
333 Keahole St
808-693-8855
Web site

Judging by my Google search, the new location has been reviewed by about every local restaurant site and then some.  Give it a try - average ticket is well below $10 and you'll be Eating Local.

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

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