Archive for the ‘Hawaii’ Category

Benefits of investing in Hawaiian real estate

May 1st, 2010

: Image by Mark Interrante (aka pinhole) via Flickr

Hawaii has long been known for its tropical beauty and outstanding sceneries. It boasts a unique charm and lively, floral appeal that is enough to refresh and enthrall your mind and body and fill you with abundant energy. Such is the beauty of Hawaiian resorts. From crowded beaches amid sparkling waters to magnanimous mountains and hilly regions to the lush growth of flourishing flora; the place is indeed one of its kinds. Every year millions of tourists from all around the world are attracted to this tropical paradise. Some of these are new visitors while there are still those who are so captivated by the place’s beguiling beauty that they return frequently to spend their vacations.

Hawaii with its beautiful six islands offers a rich geographical variation to its visitors. With a unique blend of cultures, the place holds the power of turning your simple vacations into a highly distinctive and enjoyable experience.

Out of the large number of tourists who visit Hawaii every year; a majority opts for rental houses or condos, while on the other hand there is an equally large population in search of a suitable property on this perfect holiday destination. People may opt for a real estate property on any of the six Hawaiian Islands namely: Kauai, Oahu, Molokai, Maui, Lanai and Big Island

You will find a huge variety of houses, lands, villas, apartments, single bedroom cottages, condominiums and duplexes on the islands. Whether you are single, newly wed couple or a large family, investing in a real estate that lies in a tropical paradise is indeed worth it.

For real estate buyers, there are abundant opportunities available. Even though the market lacks it usual galore due to the recent financial crisis all over the globe, the chances of finding a suitable accommodation that best suits your likes and budget are still very high. Furthermore, with the recent decline in the real estate property prices, the time is indeed ideal to invest.

For some the investment in Hawaii homes may seem rather dis-satisfactory owing to the declining prices and market clumps. However, it is worth mentioning the fact that this fluctuation is not a new one and that the chances of recovery by leaps and bounds are indeed very high.

Furthermore, another benefit of investing in a Hawaiian real estate other than its breathtaking views and floral charm is that of lower interest rates. This means that the buyer is actually able to purchase more property than he thought from his given amount.

Investing in Hawaiian real estate is also beneficial because overall the cost of living in Hawaii is very high. This major tourist attraction is also one of the most expensive places to live in and thus one has to consider all the housing costs too.

In addition, the cost of rentals is extremely high, especially if you wish to live on the main land. For this reason, the idea of investing in a real estate is more economical. The prices of Hawaiian homes are still very high; however, they have dropped considerably in the last few years giving the buyers more chances of finding amazing deals. So make sure you buy yourself a slice of this heaven on earth before the property prices soar again. Many buyers tend to foresee this economic trend as an ideal future investment.

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Tags: Hawaii Hawaiian Islands Home Searches Maui Molokai Oahu Tourism United States

Honolulu real estate update

November 21st, 2009

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Oahu real estate has fared much better than the other neighbor islands, reported Allison Schaefers of the Honolulu Star-Bulletin on September 16, 2009. Her article claimed that “Oahu posted 302 foreclosures in August, or one per every 1,109 households.” It seems that Honolulu real estate may have fared better than the rest of the island. In fact, according to Anne C. Lee’s Fast Company article written for the November 2009 issue, Honolulu has the highest median home price of $569,500. Interestingly, this is more than time times greater than the lowest median home price in the nation of $55,700 in Saginaw, Michigan. Honolulu’s median price has also held strong against the national numbers. The article claims “the national median price for existing single-family homes in the most recent quarter is $174,000.”

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Allison Schaefers had more good news for Honolulu homes for sale in her latest article in the Honolulu Star-Bulletin, published on October 5, 2009. She claimed that, “it was a September to remember for Honolulu’s residential real estate market as both home sales and prices rose for the first time in a long while.” By looking at the numbers, “single-family home sales jumped 13.5 percent to 244 and the median sales price rose 1.7 percent to $590,000.” These are good signs for real estate in Honolulu that has suffered tremendous losses in the last few months. The article’s expert, Lawrence Yun, the chief economist for the National Association of Realtors, was also optimistic. He said, “Consumer psychology appears to be decisively turning for the better as the housing market has been showing signs of bottoming, if it is not already past a bottom point.” Yun believes lower home prices and lower mortgage rates coupled with the homebuyer tax credit have helped to improve Honolulu’s numbers.

oahu-beachfront-real-estate Honolulu has been a good performed compared to the neighbor islands that have suffered much more extensively. Analysts believe this difference is due to the amount of homes on Kauai, Maui, and the Big Island that are second homes for many people who claim primary residence on the U.S. Mainland or Asia. Typically, in times of economic recession, second homes are the first assets to be released to gain liquidity.

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Waikiki real estate update

November 14th, 2009

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Waikiki real estate has been quite lucky to be spared from the overwhelming negativity that the recent economic recession and ensuing housing market collapse have imposed on several local market sin Hawaii. In fact, Waikiki condos for sale have not seen nearly the same level of changes and market dropouts that have been experienced in more impacted places in rural Oahu and the neighbor islands.
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Allison Schaefers’ analytical article in the October 5, 2009, edition of the Honolulu Star-Bulletin respected the value of real estate in Waikiki which has been able to remain relatively steady. In fact, her claim that “it was a September to remember for Honolulu’s residential real estate market as both home sales and prices rose for the first time in a long while,” is actually based a large part on gains in the Waikiki market which have boosted the overall Honolulu market. However, the situation may not be as glitzy as it may appear at first. According to Lisa Scrontras of Custom Publishing Group, “The median sales price of a Waikiki condo is approximately $350,000, which means half of the 280 units sold this year closed for less than that — some for under $200,000 and all within a couple blocks of the beach.” However, it is important to realize that the market is largely an investor market as over 62 percent of Waikiki’s residents are renters and visitors.

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Because Waikiki is such an urban environment that is home to some of the most luxurious brands and retail stores in the world, it is hard to imagine much change in the housing market. As one of the most popular places to have a second home, condominium and apartment prices have been maintained for most of the last few years by offering property owners the convenience in being smack dab in the middle of Hawaii’s most vibrant, innovative, and hip cultural centers.

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Kona real estate update

November 7th, 2009

konarealestate On October 16, 2009, an article in the San Francisco Chronicle featured Kona and the western side of the Big Island as a place of adventure and beauty. Aimed mostly at those people looking to purchase a second home during these times of depressed prices, Jeanne Cooper claimed that the market was “showing signs of new growth, which make it even more worth your while to linger here.”

hawaii-real-estate However, “The Big Island has taken one of the biggest hits among Hawai’i counties in terms of the economic recession, according to an analysis by local economist Leroy Laney,” reported Andrew Gomes, a staff writer for the Honolulu Advertiser who assessed the Big Island economy as “bleak” in his September 23, 2009, article. Gomes wrote that “the value of Kona Hawaii real estate is forecast to be down 4 percent, along with reduced property tax collections after six straight years of more than 10 percent increases.” While the dropping cost of properties comes to hurt the pocketbooks of property owners, the reduced taxation has helped ease the immediate payment burden of many Kona residents. The article also mentioned the almost halt of property construction in the Kailua-Kona area. According to the forecast, building permits are down over forty-five percent and that there is only one housing project under construction.

The Honolulu Star-Bulletin also offered commentary on Leroy Laney’s presentation at the 35th Annual First Hawaiian Bank Economic Outlook Forum. Reporter Erika Engle quoted Laney as saying, “Residential real estate on the island has seen falling prices and sales due to low buyer confidence, tighter financing “and expectations that prices may fall further.” This comes as a warning for real estate in Kona and their owners who must buckle down to see further reductions in their property values. On a better note, Jack Suderhoud, a professor at the University of Hawaii at Manoa, gave some future inspiration. He announced, “I see us bouncing along the bottom of the economic cycle for the last half of 2009 with a modest recovery in place by mid-2010.” This would be a significant boost for Kona homes for sale that would see a slow but stead recovery of housing prices from 2010 on, should the forecasts be correct.

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Tags: Kona

Maui real estate update

October 31st, 2009

mauihomes240x200 The picturesque island of Maui has captivated tourists and local residents alike for years past. Today, the beautiful island continues to awe its temporary and permanent inhabitants with its small town charm and spectacular culture. However, the island hasn’t been immune to the effects of the global economic recession that has depressed property values, affected personal home mortgages, and caused shakiness in the lending and credit business. These factors have left an indelible mark on the Maui real estate market. Allison Schaefers of the Honolulu Star-Bulletin reported on October 15, 2009, that “RealtyTrac ranked Hawaii 15th among states for foreclosure activity. Across the state, 969 properties — the second-highest number of the year — received foreclosure notices.” This number is an increase of twelve percent from the previous month and 63 percent from the previous year. “Maui’s foreclosure rate surpassed the national level in September and activity on Maui and Kauai overtook the nation during the third quarter, according to data released today from RealtyTrac.” The article quotes real estate expert Daren Blomquist as saying Maui’s foreclosure rates have risen to almost uncontrollable levels by going from below national average to significantly above the national average. However, he clarified, “One of the reasons for the gain could be Hawaii’s high percentage of second-home, resort and investment activity.”

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More bad news for Maui homes for sale came with the publication of Janis L. Magin’s Pacific Business News article that claimed, “the median price of a single-family home in Maui County was $450,000, a 16 percent decline from $537,500 from September 2008 for real estate in Maui.” However, condominium sales rose by twenty-five percent and the median price increased to $306,250, although this was still a remarkable decrease from the previous year’s median of over $388,000.

To put things in perspective, Harry Eagar of the Maui News wrote on October 13, 2009, that “single-family prices are down nearly 30 percent from 2006, when the average topped $1 million. Last year, the average was down to $877,000, and this year the average is down to $715,000.” However, some analysts believe that because Maui is such a small market, changes are often magnified compared to relative changes in other housing areas.

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Tags: Maui

kauai real estate update

October 24th, 2009

kauai Kauai real estate, like the rest of the housing market in Hawaii, has suffered great lengths since the beginning of the global economic recession years ago. Much of the real estate on Kauai has been affected by an astronomically-high foreclosure rate, reported Allison Schafers of the Honolulu Star Bulletin on September 16, 2009. The article claims that Kauai surpassed the other major islands in Hawaii in terms of outright foreclosures. In fact, “RealtyTrac recorded 212 foreclosures, or one for every 138 households in Kauai.” To make things worse, “there were 175 foreclosures in Lihue in August, an increase of 1,246 percent over the prior month and a 40 percent rise over the prior year.” Realtors who specialize in Kauai properties claim that distressed properties now command the majority of the island’s housing market and make up the largest percentage of Kauai homes for sale.

kauai2 However, there is a glimmer of hope for a recovering local property market. The Pacific Business News reported on September 8, 2009, that while single-family home sales has slipped, the “sale of condominiums on Kauai picked up in August.” In fact, “the median price of a Kauai condo last month was $300,000, just up from $299,000 in August 2008.” On the other hand, “The median price of a single-family home on Kauai last month was $471,000, down 11 percent from $530,000 in August 2008.”

Janis L. Magin wrote on September 22, 2009 in the Pacific Business News that “Kauai residents overall saw their average net worth go down by 11 percent, the same as Oahu.” This was a direct effect of a significant drop in previous home values. Even some of the island’s wealthiest zip codes experienced significant drops in average net worth. While the statistics may point to drastic changes in the local market, analysts believe that with time and improving home prices, those figures will recover in the coming year.

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Tags: Kauai

Oahu real estate update

October 15th, 2009

oahu Local economist Howard Dikus reported on his webpage that military construction and spending dollars has helped to stabilize the Hawaii real estate, especially on Oahu, by ensuring dozens of transactions and property purchases every day. However, there was good news to report: “After predicting that Oahu median home prices would fall nearly 5% in, now the forecast is for a decline of less than half that much.” Another glimmer of home was the end to a long-time slowing of home sales in July. The “rebounding number of sales was also bottoming out prices as well.”

Oahu real estate has fared much better than the other neighbor islands, reported Allison Schaefers of the Honolulu Star-Bulletin. The September 16, 2009, article claimed that “Oahu posted 302 foreclosures in August, or one per every 1,109 households.” However, this doesn’t mean Oahu was completely immune to disastrous foreclosures. Ewa Beach posted 65 foreclosures in the month, making it the third-worst zip code in the entire Hawaiian island chain. In fact, “Kapolei, Mililani, Waianae, Kaneohe and Waipahu also posted high activity.” For these reasons, real estate on Oahu has become especially volatile and reactive to just slight changes in the market. Interestingly, in light of these depressing statistics, Jessica Holzer wrote in the Wall Street Journal on September 23, 2009, that the FHFA monthly index, calculated using purchase prices for homes backing mortgages by Fannie Mae and Freddie Mac, climbed 1.6% in Hawaii while most other regions saw declines between 0.3% and up to three percent.

The number of Oahu homes for sale has risen due to a number of factors, among them the dwindling rate of vacation renters. According to the PR Newswire on September 23, 2009, occupancy rates of Oahu vacation rental homes dropped to sixty-one percent, based on the top 2, 373 vacation homes and condos operated on Oahu. The lowest occupancy rate was 40% in February while the peak of summer saw 80% occupancy – a time when most rentals are usually booked to full capacity. As more homeowners who previously rented out their properties for short-term stays, they are finding it much better financially to sell the home outright instead of worrying about an erratic income from renters.

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Tags: Oahu

Hawaii real estate update

October 5th, 2009

hawaii “Hawaii’s home prices have been slipping for the last year but we’re still the most expensive housing market in the country.” That was just one of the headlines of local television news station KGM9 News on September 22, 2009. With the median value of a single-family dwelling settling at about $560,000, analysts place the pricing of many Hawaii homes for sale in line with other prestigious markets in Washington, D.C., San Francisco, and even some of the pricier neighborhoods in Los Angeles. The report even stated that “Hawaii’s median home price is $86,000 more than the Washington D.C. median, which was ranked 2nd highest.”

hawaii2 The notion of still high real estate prices in Hawaii has been confirmed by a variety of sources. Real estate in Hawaii was mentioned in Randi Petrello’s September 23, 2009, article in the Pacific Business News when stating that the average sales price for a “four-bedroom, two-and-a-half bath house in Honolulu in 2009 was $712,500, well above the national average of $363,401.” Apparently, “the most affordable houses in Hawaii are in Kihei on Maui, where a four-bedroom costs an average of $540,044.” Interestingly, Jessica Holzer wrote in the Wall Street Journal on September 23, 2009, that the FHFA monthly index, calculated using purchase prices for homes backing mortgages by Fannie Mae and Freddie Mac, climbed 1.6% in Hawaii while most other regions saw declines between 0.3% and up to three percent.

Local economist Howard Dikus reported on his webpage that military construction and spending dollars has helped to stabilize the Hawaii real estate by ensuring dozens of transactions and property purchases every day. He also stressed that Hawaii is not out of the woods, yet. In fact, median home prices continue to be very fluctuant, although not nearly at the drastic rate that was predicted earlier. While many people are afraid to enter the Hawaii market now, it may be the best time as homes are sometimes selling at significantly discounted prices. The problem typically is that prospective buyers are ready for the significant different valuation. Many mainland buyers are used to paying small amounts for large, beautiful houses while many properties in Hawaii sell for much more and only include a small, old cottage. Overcoming this variation in expectation is a key component to increasing the rate of home sales in Hawaii.

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