Hawaii Real Estate News

Number of Single family homes sold on the Island of Oahu for the month of July in 2009 were down by 17.5% compared to the same time in 2008. The average sales price for the month of July in 2009 was down by 9.1% compared to the same time in 2008.

Number of condos sold on the Island of Oahu for the month of July in 2009 were down by 32.3% compared to the same time in 2008. The average sales price for the month of July in 2009 was down by 7% compared to the same time in 2008.

The Kailua real estate market seems to be moving pretty close to the averages of the over all island. The Leeward side of the island is continuing to get hammered both by drop in prices and number of sales.

The Waikiki real estate condo market seems to be mixed. The number of sales seem be doing better than island wide, but the price drops seem to be more than the island average. That may be good for buyers, but not sellers at this time.

About two and a half years ago, Irongate Developers had a lot to brag about. The 464 units of the Trump International Hotel and Tower Waikiki Beach, the flagship project of Irongate, sold out in one day for prices ranging from $500,000 to $4,500,000 for the most expensive penthouse. This extraordinary development set a record for the Hawaii real estate sales as the total topped $700,000,000. At the time, Irongate released a statement claiming that the sale was a world record for a one-day sale. Fast-forward thirty months from the economically very different times of November 2006, and the promised 38-story skyscraper is nearing completion, starting to make its own impression on the legendary Honolulu skyline. All is not well however – driven partially by the devastating economic depression that began in the year 2008, two groups have filed suit in District Court and Circuit Court, claiming that Irongate misrepresented the involvement of the internationally recognized real estate tycoon. The lawsuit is especially important because of the possibility of a plaintiff-friendly verdict setting a precedent for future, similar lawsuits. According to Robert Hastings, president of a local real estate appraisal firm, “These suits are a function of the times, and there will be other litigation like this.”

The plaintiffs consist of two separate groups, one of which chose to air their grievances in the state circuit court, and the other of which chose to file suit in Honolulu federal court. Combined, the trial groups include about twenty dissatisfied buyers, representing investors from the mainland, Japan, and Hawaii itself. The claims of both lawsuits are essentially the same – that Irongate incorrectly listed Donald Trump as a “co-developer” in its 2006 promotional brochure, when in reality Trump simply licensed his name to be used with the project. The lawsuit alleges that Trump had the option to terminate the contract at any point in time, since the real estate mogul did not have any material investment in the tower. The plaintiffs claim that their decision to invest in the development was based heavily on the brand name of Trump, which grants an inherent value to the complex. They are concerned that if Trump exercises the option to withdraw his name, the Trump Waikiki will plummet in value.

The suit was filed by former Hawaii Attorney General Warren Price, and seeks to recover the initial deposits of the plaintiffs. Price stated that “Our clients intended to invest in an exclusive, one-of-a-kind Trump project in Waikiki. They were making an investment in a Rolls-Royce. They weren't told there's a license and it can be terminated, at which time the Rolls-Royce turns into a GM type of car.” Irongate was quick to respond to the lawsuit, saying that “A small group of individuals filed suit today. We believe that all of the claims are without merit and we intend to vigorously defend ourselves. Furthermore, we intend to pursue all of our own claims against these individuals. The vast majority of buyers are moving towards closing and are looking forward to their first visit to Trump Tower Waikiki Beach Walk later this year.”

There were 254 Oahu single family homes that sold in the month of June 2009 compared to 232 Oahu single family homes that sold in the month of June 2008. That was an increase in the number of sales by 9%. That is really good news and if the number of sales keeps increasing compared to 2008 as we continue on in the second half of 2009, the prices should stabilize and stop decreasing over time.

There were 293 Oahu condo properties that sold in the month of June 2009 compared to 355 Oahu condo properties that sold in the month of June 2008. That was a decrease in the number of sales by 17.5%. That was not great news. Condos do usually lag behind single family homes after having a down market. Hopefully we will see that percentage start to shrink as time goes on.

Fortunately Hawaii properties have not been hit as hard as some mainland areas like California or Florida. Some of those markets have seen prices go down by as much as 60% from there highs. These numbers are not great, but they are somewhat encouraging. Hawaii definitely has been going through a natural market price adjustment. It could not keep going up at the rate we were without a pull back.

I will continue to post numbers each month going forward through the rest of the year.

The home prices for single family homes on Oahu were down approximately 15% from the same month a year ago. It looks like the house prices have declined anywhere between 10% & 25% from a year ago depending what neighborhood you are looking at.

That is great news for buyers that have been waiting for prices to adjust and get something. Interested rates have come up a little bit from their lows, but are still are very low historically. Jim Cramer recently called the bottom for real estate. That is a pretty bold prediction. Not sure if we are there yet. One thing I do know is there are some great deals out there.

Feel free to contact us if you are interesting in finding out more about what is happening in Hawaii real estate market.

Well there is some good and bad news to report. It all depends on whether you are a seller or a buyer. The good news tends to favor the buyers in the current market conditions. If you are a buyer you are able on average to purchase a home on Oahu for about 13% less than a year ago according to the sales stats for closings comparing April of 2008 to this year. With the fact that interest rates are at an all time low, it looks like a great time to buy a home here on Oahu.

We are seeing the activity pick up here on Oahu as far as offers and properties being put into escrow. These are all signs that the bottom may be near. Inventory has to shrink before prices can stabilize. It appears that is what may be happening.

There is some good news for sellers. It you have your property priced correctly with the recent increase in activity, you have a better chance of getting your home sold. I am hearing the same thing from real estate agents on the Big Island Hawaii, Kauai and Maui. Karen on Maui has informed me that investors are looking at Maui homes and condos again as investments. Russell on Kauai reports that they are looking for Kauai forecloseres or just a really good deal. He says there are plenty of them on Kauai at the moment.Looks like the confidence is definitely picking up and some buyers are starting to feel like this is a great time to get a piece of paradise.

Jim Cramer from Mad Money has been suggesting right now is a great time to start getting into real estate as an investment.

Here are some interesting numbers from April:
April of 2009 had approximately 184 SFR sell compared to 255 sell in April of 2008. The average sells price in 2008 was $731,361 compared to $640,000 in April of 2009. That is about a 13% decrease in price.

On average buyers have been able to pick up properties for 96% of list price for SFR and 95% of list price for condos.

Nobody can predict the exact bottom of the market, but with the decease in both the prices and interest rates it is definitely a good time to consider getting a piece of paradise.

Moving to Maui
Are you planning on moving to Maui? Maui locals will tell you “Maui no ka oi” … Maui is best. Although many people think of Maui as a vacation or holiday destination, there’s something magical about this place that drives people from all over the world to move here. There’s truly a fascinating blend of opposites throughout Maui; from the large, sandy beaches, to the city, to the farms, to the mountain tops rising into the sky. There are even lush, tropical rain forest areas and some of the best whale watching can be found here. Moving to Maui is like moving to a completely different world.

Plan Ahead
Making a plan is important when you’re moving to Hawaii. When do you plan to move? Typically speaking, September or October is prime time to make your move. Travel expenses are normally cheaper around these times of years and you may even get breaks on food when you’re eating out (restaurants often run specials around the slower times).

Maui Weather
Life on Maui will vary according to where you decide to live. Where do you plan to live? There are many communities to choose from which offer their own special benefits. No matter where you choose to live, at least you know the weather is almost always friendly and welcoming. During the winter, the average temperature in Maui is 71 degrees and during the summer it’s usually about 78 degrees. Don’t panic if you hear tsunami sirens sounding off on Mondays. Monday is the day that they test them to ensure they’ll work in the event of the rare storms.

Driving on Maui
If you’re moving to Maui and plan on driving, you should know that honking your horn in traffic is very much frowned upon. Here are a couple of terms that you’ll need to get used to; “mauka” means “toward the mountain” and “makai” means toward the ocean. These words are usually used in place of north or south. If you’re driving down a road that is close to the beach, don’t assume you can swerve around an obstacle by making use of the sand. Although it may appear safe, many unaware drivers end up stuck in the sand!

Island Fever
While moving to Maui may be exciting and a step into your new life, some people find it difficult to adapt. Have you heard of island fever? Not jungle fever, but island fever? There is such a thing, and it’s something that sometimes happen to newcomers. If you’re used to living on the mainland then you you’re used to having pretty much everything you could want within reach. You can jump in your car and drive to the next town or state to visit family or get something that isn’t immediately available in your area. When you live in Maui that isn’t possible, though. Island fever is basically that feeling of being isolated on an island creeping up inside you. Some people go through this and some don’t, so it’s something to be aware of.

If you decide to relocate to Maui you may want to get several moving quotes to make sure you are getting the best possible price. It is also a good thing to check out references as well. Maui is truly a great place to call home.

Housing in Hawaii
If you’re moving to Hawaii or are thinking about buying a vacation property, you might want to take advantage of the current, low prices of housing in Hawaii. From island to island you’ll find that there are remarkable deals and that they continue to get better. However, we may be closing in on the end of this buyer’s paradise toward the end of 2009 and into next year. Although housing in Hawaii is still expensive compared to other states, it’s very low compared to previous Hawaii housing prices. Have a look at some of the examples below and I’m sure you’ll agree that right may be an opportune time to invest in housing in Hawaii especially with the historic low interest rates.

Hawai’I Kai Condominiums
Hawaii Kai is found at the very southeastern end of Oahu is one of the most highly priced areas for condominiums on the island. You can save a great deal by buying one now, though. The median price of a condominium in Hawai’I Kai is almost $100,000 less than you would have paid for one in 2007. There are also more condo’s to choose from. There are over 100 listed as available, while just a year ago there were less than 90.

Single Family Homes in Honolulu
If you want to own housing in Hawaii that sits in the heart of the oldest residential areas found on Oahu, then look to Honolulu. Here, too, you can find some amazing deals on a new home. Single family homes in Oahu have been running about $690,000. While that may sound high, it’s more than 11 percent less than what it would have cost you before. If you want to buy a home here, you may want to act as quickly as possible for your situation. The availability for Honolulu single family homes has been decreasing.

As you can see, there are opportunities jumping at you from all over Hawaii. If you’re waiting to see how much lower the prices may go, you may end up with even a better deal. On the other hand, you may end up missing the deal of a lifetime because you waited too long. That’s a play of the cards, and something only you can decide. But housing in Hawaii is sure to make a strong rebound; wouldn’t it be nice to own a piece of paradise?

Below are some Oahu real estate stats for the month of February 2009.

On Oahu there were 126 SFR properties sold for an average of 91 days on the market. They sold on average 96% of list price. Average list price was $666,772 and the average sales price was $632,262. The average house size was 4 bedroom, 2.5 bath with 1,674 living SqFt and a lot size of 6,754.

For the same month the year before there were 142 SFR properties sold for an average of 77 days on the market. They sold on average 97% of list price as well. Island wide the average sales price was $770,535.

It appears that the average SFR sales price island wide for the same month has declined approximately 18%. Number of sales was down approximately 12% from 2008.

Search all Honolulu real estate on Jeff Manson's Hawaii real estate search.

Below are some Oahu real estate stats for the month of January 2009.

Island wide there were 116 SFR properties sold for an average of 95 days on the market. They sold on average 96% of list price. Average list price was $801,845 and the average sales price was $747,120. The average house size was 4 bedroom, 2.5 bath with 1,796 living SqFt and a lot size of 8,081.

The same month the year before there were 223 SFR properties sold for an average of 80 days on the market. They sold on average 96% of list price as well. Island wide the average sales price was $952,277.

It appears that the average SFR sales price island wide for the same month has declined approximately 22%. Number of sales was down approximately 48% from 2008.

The condo sales were down approximately 60% and the amount of Hawaii foreclosures continue to increase. With the interest rates at all time low there should be plenty of great buys for the bargain hunters.

OAHU real estate - Resale Statistics December 2008**
Resales statistics released by the Honolulu Board of REALTORS computerized Multiple Listing Service (MLS) system, the statistics are:

December 2008 Residential Resale Statistics for Oahu

Single Family Home Resale

December 2008 194 $ 626,500
November 2008 $ 594,500 up 5.4%
December 2007 240 dn 19.2% $ 610,000 up 2.7%

Condominium Resales

December 2008 243 $ 305,000
November 2008 $ 316,200 dn 3.5%
December 2007 353 dn 31.2% $ 320,000 dn 4.7%

December number of sales: 194 single-family homes - 294 condominiums was a decrease of 19.2 percent for single family homes and 31.2 percent for condominiums, compared to 2007 same month. 2008 total for single-family home sales were 2,741 and 3,933 for condominium sales was a decrease of 24.4 percent and 28.5 percent compared to 2007. Oahu median sales price in 2008 were $624,000 for single family homes and $325,000 for condos with a decrease of 3.0 percent for single family and no change in price for condominiums.

Oahu’s annual resale figures for 2008.
They are:
Annual 2008 Residential Resale Statistics for Oahu

Single Family Home Resales
Year / # Sales / Price
2008 2,741 $ 624,000
2007 3,627 dn 26.1% $ 643,500 dn 3.0%

Condominium Resales
Year / # Sales / Price
2008 3,933 $ 325,000
2007 5,499 $ 325,000

*Median price means half the prices were above and half below the given price.

GEOGRAPHIC AREA / SINGLE FAMILY HOME / CONDOMINIUMS
Honolulu real estate (Town) $ 722,500 $ 320,000
Diamond Head real estate $ 936,000 $ 437,500
Hawaii Kai real estate $ 850,000 $ 539,000
Kailua real estate $ 774,500 $ 415,000
Kaneohe real estate $ 663,800 $ 400,000
North Shore real estate $ 797,500 $ 360,500
Central Oahu real estate $ 580,000 $ 307,500
Leeward Coast real estate $ 380,000 $ 154,000
Ewa Plain real estate $ 465,000 $ 299,000
Makakilo real estate $ 560,000 $ 299,000
Waipahu real estate $ 550,000 $ 280,000
Pearl City real estate $ 627,300 $ 302,900