Aloha Tony - The Hawaii Real Estate Blog

Hawaii max conforming loan now goes to $793,750!

2009-04-20T20:38:00.002-10:00

Hawaii real estate is expensive, but it just got more affordable. While most mainland states allow loans up to $417k at conforming rates, Hawaii has allowed up to $625,500 until this year. Loans above those amounts were jumbo loans with rates around 6% as of last month.

This week some lenders have allowed a new maximum conforming loan amount of $793,750. Lenders can now offer that amount at about 4.5% on a 30yr fixed loan. Amazing! Homes in the $700k-$1million price range just got cheaper to buy!

Don't raise taxes in Hawaii

2009-04-20T12:38:00.002-10:00

There are some important Hawaii state tax related measures that we need to be aware of.

There was a proposed dramatic increase in the Conveyance Tax under S.B. 1277 from earlier in the Session that has so far been defeated. This would absolutely have devastated the real estate industry, with a maximum Conveyance Tax increase for non-owner occupant condos and single-family residences from 35 cents per $100 (0.35%) to $8 per $100 (8%), an increase of 2,285%. It also proposed to increase the maximum Conveyance Tax rate on the sale of all other real property from 30 cents per $100 (0.30%) to $4 per $100 (4%), an increase of 1,333%.

Are these people out of their freaking minds? This could kill the market. The transfer of a $10,000,001 commercial property would be subject to an $800,000 Conveyance Tax!

On Saturday, April 18, House and Senate conferees met to discuss and pass several tax measures. The primary reason to convene this early in the conference committee process was to allow enough time to override a possible veto by the Governor while the legislature is still in session.

Below is an outline of several tax measures that will be voted on in the Senate and House floors on Wednesday, April 22

H.B. 1741, Relating to Conveyance Tax; conveyance tax rate - Increases conveyance tax on non-owner occupant condos and single-family residences to $1.25 per $100 (1.25% versus 8% under S.B. 1277), an increase of 357% (versus 2,285% under S.B. 1277); and increases the maximum rate on other property to $1 per $100 (1 % versus 4% under S.B. 1277), an increase of 333% (versus 1,333% under S.B. 1277).

H.B. 1747, Relating to Taxation; income tax rate - State income taxes would be a maximum tax rate of 12% on individuals who earn $150,000 or more a year, heads of households who make $225,000 or more a year, and couples filing jointly who earn $300,000 or more a year. The increases would be effective until year 2015.

Such an increase would result in the highest marginal income tax rate in the nation. Hawaii's current tax is 8.25% on individuals who earn $48,000 or more.

I support lower taxes in Hawaii and the country, and the world!

Hawaii foodbank drive

2009-04-16T17:18:00.001-10:00

Help feed Hawaii's seniors, children, homeless and families facing hunger! Now through tomorrow Honolulu Board of REALTORS® is collecting donations for the Hawaii Foodbank. The goal is to raise more than 300 pounds of food! Canned items and monetary donations can be given at the HBR Office (donation checks made payable to Hawaii Foodbank). The top five most wanted canned items are:

Canned Meats & Tuna
Canned Meals (spaghetti, chili, corned beef hash)
Canned Soups
Canned Vegetable
Canned Fruit

This year HBR is also hosting fundraisers, as additional support for HBR's Hawaii Foodbank Campaign.

More evidence of the turnaround happening

2009-04-14T17:14:00.003-10:00

Some people thought I was nuts to say the market is turning. Well today I got 2 emails from California agents who told me the same thing is happening there.

Look at this email from an agent in North LA county: "Market hit bottom 3 months ago.. pricing [are] going up and multiple offers.. Palmdale and lancaster are starting to go back up but it hit 1998 prices. We have about 3-4 months inventory due to the moratorium on foreclosures. The tax incentive is having buyers come out of the woodwork.. even Doug came back down from Canada [to work]. The lenders are few but I am still busy closing deals."

So I'm not the only crazy out there thinking the market has hit bottom.

Nobody wants higher taxes in Oahu

2009-04-14T07:59:00.003-10:00

When your income is down, and the economy is slow, do you want to pay more in taxes? Does anyone ever want to pay more in taxes?

If you don't like higher taxes, whether you like it or not, you should be a conservative (read: Republican). Conservatives believe that lower taxes allow people to have their own money to spend how they want, which will lead to more spending and a freely flowing economy.

There aren't many conservatives in Oahu, but there is one outspoken one that has a radio show and a column in the Star Bulleting - Rick Hamada. He wrote a great article on the current tax issue in our legislature.

What does this have to do with Oahu real estate? EVERYTHING! If people are going to buy houses, they need as much of their own money as possible. They need to be able to run their businesses profitably, which means the government should let them run it how they want.

If you want a good paying job, don't you want your employer to pay as little tax as possible so they can pay you more? If your employer is charged higher taxes next year, do you think they will give you a raise too? NO!

If you like having your own money instead of paying it to the government, then you are a Republican, whether you like it or not.

Hawaii New Home Builders are negotiating for the first time

2009-04-14T07:12:00.003-10:00

It used to be that new home builders in Hawaii and just about everywhere did NOT negotiate. If you walked in and liked their model, you could buy a house like it, and overpay for upgrades if you were really determined to do so .

But if you ever asked them to come down in price, or change some terms, you were told very politely, "please sign on the line and stop asking for anything more than we want to give you."

In over 10 years in this business, I had never seen a builder willing to negotiate, until this month. I took a client of mine over to a builder (let's just say, in West Oahu), and we found a beautiful large house that had a huge lot. My client loves gardening (like me) so this 2000sqft+ house with 10,000+ sqft of land was perfect. But it seemed a little pricey.

Then just as we were looking around the model, the builder's agent offered this up: "The developer is offering to pay all closing costs, plus a $30k credit for upgrades, plus a 2-1 buydown on the rate. BTW, a 2-1 buydown means your interest rate starts out 2 percent below the market for a year, then 1 percent below the next year, then fixed for 28 more years.

But my client, still looking for a better deal, asked for more. After much discussion, he was offered an additional discount on the price AND an additional credit for upgrades.

In the end the price reductions and credits added up to about 13% of the list price of the house. So the next time you walk into a builder's office, put on your game face. Get as much as you can out of the deal. Buyer's, it's your market. Even in the builder's office!

Letter from Gov Lingle to Hawaii realtors

2009-04-14T06:10:00.002-10:00

The Governor sent out a letter to Realtors this week, and there were a couple interesting points that you might care to hear about.

I'm in whole hearted agreement with her first point: "The worst thing we could do in our current situation is to place a heavier burden on Hawai'i's residents by raising general taxes. I have consistently opposed raising taxes, and I will continue to oppose efforts to take more from Hawai'i's working families at a time when they can least afford it."

Now that sounds like a good Reagan Republican to me.

She also acknowledges the rold of Realtors in the lesgislative process. We have a pretty strong voice as she can says here: "I want to thank you all for your active participation in the legislative process. The Hawai'i Association of REALTORS® and its 9,600 members have been steadfast in their opposition to increasing the tax burden at a time when we are all working harder to make ends meet. In this time of shared sacrifice, I appreciate the support of Realtors for solutions that are prudent, reasonable and fair for all of the people of Hawai'i."

Basically I just wanted you to know that REALTORS® are a voice of fiscal conservativeness when it comes to taxes and other legislation. See, we don't just sell houses.

We have reached the bottom. I'm serious

2009-04-07T14:34:00.003-10:00

There are several things that led me to post an entry such as this, and I've been thinking about it for several days. This is the kind of post that can cost me a lot of credibility, but here goes.

First, on Sunday I had 50 people at an open house. It is my Aina Haina listing for $1.1million, a nice house but nothing out of the ordinary for the area. A nice pool home with 5 bedrooms and 2300sqft. I haven't had 50 people at an open house in about 4 years. Another agent in my office said he had 25 people, and the $1.2million house he is listing was in escrow last week, until the buyer found a few problems in the roof.

Also, the March stats for sales came out, and like I predicted, the number of sales jumped up significantly, while median Oahu home prices rose again to $600k. The number of listings is down again, to about 1900 homes and 2200 condos, and the number of sales was up about 20% compared to Jan and Feb.

Finally, there was this very poignant article in Forbes, which said that "The end result is that the stock market and the economy are being lifted on a sea of liquidity, giving us a V-shaped recovery. Very soon, the recession will officially end. This is not a dead-cat bounce, and it's not government spending. It's easy money, plain and simple."

I'M CALLING IT NOW! This is the end. And the beginning of the recovery of Hawaii's real estate market.

March stats are out and prices are up, sales down

2009-04-02T14:12:00.000-10:00

The median price of Oahu single family homes rose in March from the previous month back to $600,000 for the first time this year. Sales continued to shrink from a year earlier.

Only 188 single-family home sales closed last month which was 33 percent less while Honolulu condo sales lost 36 percent.

The median price paid for a condominium rose 2.7 percent from the prior month to $305,000, but dropped 7.4 percent drop from the prior year's $329,300.

Oahu's real estate market is weaker than last year for last month, but seems to be picking up right now. I have several buyers in escrow and listings are getting a lot of calls and showings.

While interest rates are super low at about 4.5% and buyers perceive that the market has hit bottom.I have received a LOT of inquiries since Feb 1st.

The market may have hit bottom in about December. Remember that March numbers reflect buyers that went into escrow in mid to late January. The buyers who go into escrow this month will really drive this year's market, and those numbers won't show up until the May stats are released.

The zero interest Mortgage is here

2009-03-18T11:01:00.003-10:00

Good news for Oahu real estate - Today the Fed announced that it will be buying Treasury bills in bulk, which means, by the tens of millions. In response the market rallied, bond prices went up, and bond rates went down.

Within a few minutes I got some emails with mortgage rates of 4.25% with 2 points on a 30 yr loan. This is basically a zero interest loan. Let me explain:

You get a deduction of mortgage interest, which for people in the 20-30% tax bracket represents their biggest top line deduction. So you're paying only about 3% of actual money interest. (that is not a typo).

When you figure that inflation or hyper inflation is on the way within a year or so, and you estimate even conservatively that inflation will get back to around 4% within a couple years, you are basically getting free money. In fact, today you can still get a 4% CD at my credit union, Hawaii USA federal CU.

So basically, if you want free money, borrow a 30yr mortgage today at 4.25%, and sit on it until inflation comes. Sooner or later you can put that money in a CD and probably earn double that amount.

In case you don't remember, as recently as 1999, banks were paying 9% on just a regular old 5 yr CD. I remember driving by my bank and seeing a big sign that said, "10 yr CD's 10%". If only we had all put our money there!

In the end, what this means is that the housing market is going to let our a collective sigh of relief, as it becomes cheaper to buy a home again, and many will be able to refinance with these lower rate PLUS the new mortgage relief act which allows you to refinance without having 20% equity in your home.

All good news for Hawaii real estate.

Some great economic news in Oahu

2009-03-12T11:13:00.003-10:00

Looks like we will getting a massive new shopping mall in Kapolei, which is West Oahu for those not familiar with the island.

Kapolei is where all the growth is happening in Oahu, with some massive home building to come in the next few years. There is going to be new contruction in Kapolei for the next 10 yrs. Construction is supposed to begin in late 2010 on the $500 million complex which will have a whopping 1.1 million square feet of commercial space, and 200,000 square feet each of hotel and office space.

The mall is going to be called Ka Makana and is supposed to create about 21,000 construction jobs over five years. Once completed, the whole complex is expected to create 4,000 to 5,000 jobs. The complex is going to have two towers for hotels and two for offices. The two hotels would have between 300 to 500 rooms and would be aimed at those doing business or visiting family in West Oahu.

The developers expect the Hawaii economy to recover by the time the first stores open because Hawaii is a little sheltered from this economy
Here is the article.

This is great news for Kapolei, Makakilo, and Ewa real estate, which have been struggling a little bit lately. Jobs = money to buy homes, pay mortgages, and less foreclosures.

10 things that buyers hate - how to not sell your Hawaii house

2009-03-11T09:36:00.003-10:00

I was showing some homes to a client this week and walked into a home that smelled like flowers. All 3 of us made comments about how nice it smelled and felt happy the whole time we were there. I saw that the owner had lit some candles to make the home smell nice.

Then it hit me - why doesn't everyone try hard to make their home buyer friendly? Why is there so much weird stuff I see, smell, and hear when I walk into a house? So here are 10 things that buyers hate. 10 things that will keep your home from selling, in no particular order.

Smokers. You cannot get smoke out of a house. Change the carpet, paint the walls, buy an ozone machine, and you might not get it out if it's real bad. I don't care if you smoke outside, you still can smell it when you walk in.
Dogs, cats, birds, rabbits, and anything with hair. I can small pets the moment I walk in. your carpet is probably stained in places you can't see without moving furniture. You have fleas and you don't think you do. Your house smells like pets, and buyers hate that.
Clutter. Please don't leave your collection of Chinese dolls or your 10 chess sets in plain view for us. Please throw away your trash, clean your dishes, put away your clothes, and make the house look un-lived in.
People. Huh? Yes, people. Buyers want to walk around uninteruppted, and want to feel like they can look anywhere for as long as they want. So please get out of your house when we come to see it. Don't stand there watching over us like a school principle. Let us look slowly and carefully at this most important investment.
Dirt - There is so much red dirt on this island, and it seems to get everywhere. It makes fences and walls look terrible, so go buy some Oxyclean and get that stuff off. You might have to get a pressure washer and put some of that Oxyclean in there. Whatever you do, just get the dirt off your house.
Darkness. Open the dang windows please! Don't close all the blinds when we are about to show up, and please do turn on all the lights. If you have dark drapes or blinds, you might have to get rid of them. This is Hawaii, so let the sun in!
Weird decor - we walked into one house that had a giant nude painting of a woman right in front of the entry. It was all we could talk about the entire time so we hardly even saw the house. The rest of the day we kept laughing about the giant painting. In fact the house was pretty nice, but we could hardly notice!
Extreme colors - bright red, bright yellow or green, basically anything that will distract the buyers. I don't want to walk into a house and be shocked. If my first thought is, "whoa! bright colors!" then you've probably missed an opportunity to grab a buyer. First impressions do count, a lot.
Heat - in Hawaii it gets warm, very warm. So if you have a home that has been locked up with all the windows shut, the buyer is going to walk in and feel too hot to want to stick around very long. Even if they like the house, they might want to get out because they are so darn hot. So if your house gets hot, you may have to turn on the AC when you have showings .
Most importantly - PRICE! Don't overprice and hope to get something lower. Price the house to sell because this is a buyer's market and probably will be for a long time. If you price a house even a little too high, it tells the buyer that you're not that motivated. It might keep you from getting an offer, while pricing it "low" might get you 3 offers above asking. Price it to sell quickly or you'll be waiting around a year and probably will get less in the long run than if you sell fast.

Ready to sell your house? I'm your guy! Call me today and let's get your house sold!

New listing in Aina Haina - pool home on large lot for $1.1mil!

2009-03-07T14:20:00.010-10:00

Check out this beautiful new listing with a huge pool! It's a beautifully remodeled home in my neighborhood on a big corner lot!

The owner finished a massive remodel in 2006 and now is looking to downsize. This is a great opportunity, as nothing in this price range compares nearby. The seller remodeled the kitchen cabinets & counters, installed new vinyl windows, changed the exterior new doors, redid the bathrooms, installed new floors which included leveling out all the different levels.

Then she found she had to do all new electrical since the house was 50 years old. It's now basically all new with a new roof & ceilings, all new drywall in most of the rooms, new vinyl gates, and new pool tiles and pump.

At over 2300sqft, it has a large living room and plenty of space in all the rooms. with over 10,000sqft of land, it has a huge yard with lush landscape to go with the pool.

This is an incredible value priced to sell fast! We're not showing it for 2 weeks, and by then I expect several buyers to be itching to get in.

New Listing in Aina Haina

2009-02-18T08:15:00.002-10:00

Today I will be uploading this new listing in Aina Haina, on Lawelawe street. This very nicely redecorated home has 3 beds and 2 baths in the main house, with a detached studio that can be used as an in-law unit. Modern fixtures combines with slate and hardwood floors make this home an appealing choice in one of Oahu's best neighborhoods.

It has a large flat back yard, deck on top of the house, and plenty of room to entertain. Lush landscaping everywhere. At $895k, this is a great deal for anyone who needs a separate living space or office next to their home. With 1962 sqft and over 7500sqft of land, there is enough room for everyone. And of course, you get to live in the Aina Haina district - one of Hawaii's best.

Hawaii Kai Townhouse - In Escrow after 2 weeks

2009-02-10T14:39:00.003-10:00

The Moana Kai townhouse is now in escrow after just 2 weeks. More proof that a house priced well in this market can sell quickly. In fact I have other buyers in escrow as well, perhaps because rates are so low. Or maybe it's just that after 3 years of a slowing market around the country, more like 5 years in some areas, people are now thinking the bottom has come.
Buyers are now back in the market, with even contractors and investors beginning to step back in to take advantage of the lower prices and mortgage rates. Tomorrow I will be looking at some great fixer upper type properties around Oahu, and I have to say there are quite a few great deals out there.

Check out this Kailua property with a pool for $619k. WOW! Looks like a contractor special, but what a bargain for a house with pool in Enchanted Lake. Kailua real estate has really come down in value. Is this the bottom?

Schools in Hawaii

2009-02-05T10:46:00.003-10:00

One of the greatest concerns for many buyers is the quality of schools in Hawaii. Some people have heard some pretty bad stuff about our schools. I've found that the annual Honolulu Magazine review is very helpful. With test scores, parent and student surveys, as well as teacher reviews, it's a pretty thorough review of our school system.

You can email me for the new list. I simply copied the results from the magazine article into an excel file. It's not a pretty file or anything, but it gives you the results.

The top schools are all over the island, which is great news. Not just Hawaii Kai and Mililani as usual, but many others around the state and around Oahu. If you have kids and you're moving to Hawaii, this is a must read.

New listing - Wood Creek in Launani Valley. A tropical getaway in Oahu!

2009-02-02T15:47:00.002-10:00

I think when people picture living in Hawaii, a lot of them picture a house with a view something like this. The lush forest and flowing creek in Launani Valley offers something totally unique in Oahu. It's actually kind of surprising that there isn't much else like this here. Maybe in Olomana you can something kind of close, or up in Ahuimanu. And both of those areas are beautiful, but mostly older homes that will cost about $800k-$1million (and worth every penny.)

But if you have about $600k to spend, or in this case $630k, you can get this home built just a few years ago with 1658sqft in Wood Creek. It's a beautiful setting. Quiet, lush, cool temperatures year round, and hardly anybody knows it's there.

This house is on one of the best parts of the creek, with 2 little water falls right out back. With 4 bedrooms and 2.5 baths, it has all the space you need, but I think you'll be spending most of your time outside enjoying the mild mini climate.

Launani Valley is located in the North part of Mililani, about 10 minutes past Mililani Mauka, and yet feels totally secluded. If you want a lush tropical rain forest type of experience, this is the place for you. And of course the prices are great. For this same price you can get a smaller house in Mililani Mauka, which is a great area but not quite as lush or as quiet. The benefit would be that you're closer to shopping, schools, etc.

You could buy a smaller older house in Pearl City or Aiea, or a larger newer house in Royal Kunia or Kapolei. But if you're looking for the true tropical rain forest type of experience, Wood Creek is the place for you. The entire neighborhood was built starting about 10 years ago, so the houses are in really great shape. Every buyer I have taken to Wood Creek has loved the area even more than the houses. It's usually the forest and the creek that sell people.

A nearly Brand New Home in Hawaii for $720k!

2009-02-02T15:37:00.003-10:00

This house is only 2 years old and looks as good as new. With 5 bedrooms, over 2300sqft, a 2 car garage, and a great yard, it's hard to believe it's only $720k. In most areas of Oahu, that doesn't get you much house at all. And this is why a lot of people choose to live in Ewa Beach.

This home is located in Haleakea by Gentry, a new home tract with high quality construction and golf course frontage. While this particular house is not on the course, it does have a little peek a boo view of it across the street.

Check out the beautiful kitchen with upgraded stainless appliances. The size and quality of this house is pretty amazing for Ewa Beach, which is mostly mid range homes in the $400-550k range. And while the builder is selling this same model for a bit more money, you'll have to wait a while to get your hands on one, so why not buy this house instead?

As I drove into Ewa this morning, I noticed that they made some good progress on the road widening project, but it has taken way too long. Hopefully they will be done soon because it is seriously effecting the quality of life for a lot of people there.

The best article I have read all year. Just kidding.... Wait no I'm not.

2009-01-28T08:53:00.003-10:00

I just saw this article in the Star this morning regarding the drop in number of Hawaii Realtors in 2009. The article highlights the total number of Hawaii real estate agents that haven't renewed their licenses this year, but that's not what I love about it.

Sure, "the Hawaii Real Estate Commission saw a 21 percent decline in license renewals this year," but that's no big deal.

The part I love is this - "Of all Honolulu board Realtors, 44 percent made no sales, and only 18 percent made one sale, last year. "

That is amazing. I guess these are part timers or people who just have their Hawaii real estate license just in case. I can't imagine trusting an amateur with the most important financial decision of your life - your home sale.

Condos in Kailua under $300k? No way...

2009-01-22T09:42:00.003-10:00

It seems like a condo in Kailua under $300k is impossible. For the last few years it has been. The cheapest units I can think of were about $350k, and usually not in great condition. I guess the market has changed enough for people to start selling their rentals at rock bottom, because I just saw 2 units at Meridian East in Kailua for $298k. In fact I have a client who is going to buy one with this nice ocean view.

We have been waiting since about June for something to come up in Kailua under $300k, and it has finally happened. These units were selling for $340-$380k just 2 years ago, and as high as $480k for a nicely upgraded ocean view unit.

For $298k you get a little 2 bedroom unit with 1 parking stall, and a renovation project that will take most of your time for a few months. This is the kitchen here, not too great but workable. But you're paying mostly for location, as Meridian is located in the heart of Kailua town. You can walk to Foodland, Starbucks, all the little restaurants in Kailua, and of course, the beach. I would say it's about a mile to the beach so you might want to ride a bike.

The condo options in Kailua are sparse. You have Hokulani which is the newest complex for about $400k. Nice little condos that are walking distance to everything. Then you have the 2 older buildings at Gardenia and Poinciana Manor which will cost about $450k up to as much as $575k for a nicely upgraded unit with view. In between you have Windward cove and Windward Passage for the mid $400k's.

Believe it or not, nothing new in Kailua is planned. So you just don't have many options, especially under $300k. But condo living in Kailua is all about the lifestyle. Since much of Kailua is flat, you can ride your bike all over the place, enjoy the beautiful beaches, and live a life that is pretty much idyllic. I love Kailua and I'm sure you will too if you buy there.

My clients love the location, because even though they work in other areas, it's a quick drive down H1 into Honolulu town and down H3 for the West Side. And there is not nearly the traffic as you get coming from the West side into town.

New Listing - Moana Kai

2009-01-18T08:39:00.003-10:00

I just listed this beautiful townhouse yesterday in Moana Kai
for $619k. It's probably the best value in Hawaii Kai for a 3 bedroom home. Built in 2005, this home has been upgraded with Brazilian Cherry hardwood floors, stainless steel appliances, custom closet systems, granite counters, and much more. Best of all, it sits on a perimeter lot that faces some nice green trees and grass. Most of the units in here just face other units.

I expect this unit to sell quickly since we are priced very well and it shows better than a model. The unit is over 1700sqft and has a great upstairs family room.

Here is our virtual tour page http://tours.virtupix.net/3323?a=1.

Moana Kai is right in the heart of Hawaii Kai, just a short walk to Safeway, Costco, and everything those centers have to offer. Though there is no pool in the complex, The Oahu Club is about a 10 minute walk away. They have a great pool, gym, and tennis courts for not very much money per month.

You can commute to downtown Honolulu in about 20-30 minutes from Moana Kai, because it's not to far up into Hawaii Kai. If you get out into Kalama Valley or even too far back in Kamiloiki, you might find yourself adding another 15 minutes to the commute.

One other note about this unit - it's on the opposite side of the complex from the new yet to be built complex coming on the Hawaii Kai Drive side. Some of Moana Kai faces that new building, which is going to block a lot of views.

Oahu Real estate is heating up again

2009-01-14T09:51:00.002-10:00

Maybe it's the Obama pop? No matter what you think about politics, you have to understand that at least half of this country is feeling good about the next year's leadership. Or maybe it's the 30 yr fixed rates at 4.25%. I know, it's crazy free money!

Maybe it's because people are tired of hearing bad news and are choosing to believe the housing slump is over - whatever it is, I'm seeing buyers and sellers step up. I have several buyers picking up bargains and sellers finally deciding to price their homes to sell.

I almost don't care why it's happening, but the market is beginning to perk up. Just thought my readers might care.

2008 was the end of the world.

2008-12-31T07:34:00.004-10:00

The sky fell, governments collapsed, the stock market crashed twice, the real estate market plummeted, retail sales sank, unemployment tripled, and a flaming liberal got elected to the higest office in America.

But for all that, nothing much changed in Hawaii. While homes in places like San Diego and Modesto CA saw 40% price drops, the overall market in Oahu was just sitting here looking pretty.

Why?

The first and best reason is - it's Hawaii. Our tiny island state doesn't have many homes to offer, and no land to build on. Hawaii Kai has maybe 20 decent homes to choose from in the entire city. There are other listings, but a lot of it is junk. Even buyers with $1million who are ready to buy are finding it tough to find a home that suits them. Last night I was talking with friends about the neighborhoods in East Oahu, trying to think of a nice home available right now under $1million. Unfortunately, or maybe fortunately, we couldn't come up with any. We talked through the homes for sale in Aina Haina, Waialae Iki, Niu Valley, and then talked about the town areas - Nuuanu, Pali, Manoa. Still, we couldn't think of anything great for sale.

Maybe the supply will go up next year, and maybe the market will crash, but with all the economic hail storms of 2008, Hawaii was left pretty much unscathed, except for Waianae and Ewa Beach.

Just imagine if you had put $100k in Oahu real estate on Jan 1, 2008 - maybe a house in Kahala or Diamond Head, and another $100k in the stock market. Your home in Kahala would be worth about the same as it was, while your stocks would be worth maybe 40% less!

My prediction for 2009 - more of the same. The economy will suck, the president won't be able to do anything, and home prices in Oahu will stay about flat. I never would have guessed it for 2008, but now I'm predicting it for 2009.

The re-refi boom in Hawaii

2008-12-29T10:13:00.003-10:00

Appraisers are swamped, lenders are working long hours, and home owners are rejoicing at lower payments. Refinancing helps the real estate market as home owners have an easier time owning their property, and some that might have defaulted or needed to sell can now stay in their home.

There will also be owners of rental properties who might have had to sell, who now can afford to keep their property and continue to rent it out.

I've spoken to several lenders and heard they are now suddenly backlogged with new loans, and appraisers are going crazy too. All of this is great news for home prices, because lower payments means less homes for sale, which means prices can hold better. It also might mean some sellers who were going into foreclosure might be able to get a loan modification from a loss mitigator, and actually keep their home.

I just had a client today tell me that their lender was wiling to reduce their interest rate by 1% if they would keep their home. Pretty interesting stuff that I've never seen until this market. It must be that bad for lenders right now.

Multiple offers on houses in Hawaii

2008-12-19T13:33:00.002-10:00

I just got off the phone with an agent who has 3 offers on her short sale in West Oahu. There are plenty of buyers out here in Hawaii, and they are looking for bargains.

I can setup a search of just short sales, so if you're looking for a great deal, let me know.