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January, 2007 - Newsletter for the Maui Market
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Don't forget! We provide a free Automatic E-mail Notification Service that goes out to specific recipients when ever a new listing becomes available for a particular condominium complex. Each of these notifications includes a link to view the brand new listings in the MLS. We DO NOT SHARE YOUR EMAIL ADDRESS or your contact information with anyone. To subscribe to our Automatic E-mail Notification Service, please send Won an email at Won@JamesBFoster.com with your first and last name, your email address, and the condo complex you wish to be notified of.
Property for Sale in New Developments in West Maui
A new condominium development – Located in Lahaina and consisting of two bedroom and three bedroom condominiums across the street from the Cannery Mall and Lahaina Gateway. Sizes range from 1,239 square feet to 1,321 square feet for the three bedroom units up to 1,820 square feet with a home office 10’-6” X 11’. The two bedrooms are approximately 1,201 to 1,231. This is in the pre-construction stage and for sales information you can call Jim at 1-888-661-7994.
A New Land Development - 28 fee simple ocean view agricultural-zoned lots set on 450 acres of West Maui's historic lands. The 28 lots offered for sale are from 2.79 acres to 13.27 acres and range in price from $1,125,000 to $1,395,000. Two water meters and underground utilities to each lot. CC&R's do not allow any further subdivision. Just 20 minutes to Kihei/Wailea, Kahului and Kaanapali. Directly across the street from Ukumehame Beach Park and famous "Thousand Peaks" surfing beach. Access by appointment only. See attached "Associated Project Documents". Two water meters and underground utilities to each lot. The CC&R's do not allow any further subdivision. The land offers residents some of the most breathtaking views imaginable - dramatic mountains and valleys to the East, and 180 degree ocean views to the West overlooking the islands of Lana'i and Kaho'olawe. With preservation lands to the North and South, you can rest assured that your privacy and views will be protected forever. Directly across the street, and well within strolling distance, you'll find Ukumehame Beach Park and world-famous "Thousand Peaks" surf break. For sales information you can call Jim at 1-888-661-7994.
Honua Kai - Located on the last stretch of beachfront in Ka'anapali, Honua Kai is the first whole ownership condominium resort to be built on the beach in over 20 years. Amenities include three spectacular pools, a boutique spa, underground parking with valet for owners and the recently announced Duke's Maui restaurant. Currently available is a one bedroom for $760,000 with 615 s.f.; 2 two bedrooms at $1,650,000 with 1,230 s.f. and one at $1,950,000 with 1,315 s.f.; and 3 three bedrooms at $2,100,000 with 1,610 s.f., $3,850,000 with 2,230 s.f. and $5,600,000 with 2,715. s.f.
For sales information you can call Jim at 1-888-661-7994.
The West Maui real estate market continues to transition from a Seller’s market to a Buyer’s market. The current inventory of West Maui condominiums for sale is now at 410 and seemed to peak at 429 on November 29th and has gone up and down since. Properties are requiring more time to sell and Buyers have a much larger inventory of properties for sale to choose from. The peak season is upon us and we are now seeing an increase in showings with more visitors on island. The properties for sale during the peak season receive more showings generally as they attract prospective buyers on island during this period of time.
In the West Maui real estate market, at the beginning of July, 2005 there were 165 condominiums for sale in the West Maui area and the total value was $159,356,997.00; August, 2005 there were 166 condominiums for sale with total value of $154,446,497.00; September, 2005 there were 176 condominiums for sale total with value of $163,215,390.00; October, 2005 there were 177 condominiums for sale with total value of $168,464,220.00; November, 2005 there were 199 condominiums for sale with the total value of $188,377,265.00; December, 2005 there were 231 condominiums for sale with the total value of $222,669,115.00; January, 2006 there were 226 condominiums for sale with the total value of $226,520,200.00; February, 2006 there were 280 condominiums for sale with the total value of $281,793,835.00; March, 2006 there were 297 condominiums for sale with the total value of $286,082,559.00; April, 2006 there were 350 condominiums for sale with the total value of $317,599,199.00; May, 2006 there were 354 condominiums for sale with the total value of $321,932,077.00; June, 2006 there were 362 condominiums for sale with the total value of $333,616,070.00; July, 2006 there were 392 condominiums for sale with the total value of $346,937,598.00; August, 2006 there were 393 condominiums for with the total value of $344,119,142.00; September, 2006 there were 413 condominiums for sale with the total value of $369,322,455.00; October, 2006 there were 408 condominiums for sale with the total value of $366,608,574.00; November, 2006 there were 407 condominiums for sale in the West Maui area with the total value of $357,086,324,00; December, 2006 there were 428 condominiums for sale with the total value of $361,399,109.00; January, 2007 there were 410 condominiums for sale with the total value of $372,238,031.00; and at the beginning of February, 2007 there are 431 condominiums for sale in the West Maui area with the total value of $393,681,669.00. The condominium for sale inventory since July, 2005 has been as low as 165 and is up to 431 for February 1, 2007. The “for sale” inventory on West Maui continues to increase.
As of January 2007, the total condominium sales for West Maui during the month of August, 2005 were 52 and the total value was $31,852,104.00; for the month of September, 2005 total condominium sales were 58 and the total value was $39,539,021.00; for October, 2005 total condominium sales were 38 and the total value was $23,503,291.00; for November, 2005 total condominium sales were 48 and the total value was $35,051,564.00; for December, 2005 total condominium sales were 47 and the total value was $26,101,467; for January, 2006 total condominium sales were 42 and the total value was $28,574,643.00; for February, 2006 total condominium sales were 48 and the total value was $32,995,078.00; for March, 2006 total condominium sales were 40 and the total value was $32,199,584.00; for April, 2006 total condominium sales were 43 and the total value was $41,898,525.00; for May, 2006 condominium sales were 51 and the total value was $39,644,886.00; for June, 2006 condominium sales were 40 and the total value was $ 32,533,500.00; for July, 2006 total condominium sales were 30 and total value was $26,212,000.00; for August, 2006 total condominium sales were 28 and the total value was $31,885,500.00; for September, 2006 total condominium sales were 30 and the total value was $24,770,000.00; for October, 2006 total condominium sales were 29 and the total value was $23,359,299.00; for November, 2006 total condominium sales were 22 and the total value was $13,414,600.00; for December, 2006 total condominium sales were 30 and the total value was $23,169,999.00; and for the month of January, 2007 as of 2/1/07 in the MLS data, total condominium sales were 37 and the total value was $33,091,000.00. The total condominium sales for August, 2005 was 52; September, 2005 was 58; October, 2005 was 38; November, 2005 was 48; December, 2005 was 47; January, 2006 was 42; February, 2006 was 48; March, 2006 was 40; April, 2006 was 43; May, 2006 was 51; June, 2006 was 40; July, 2006 was 30; August, 2006 was 28; September, 2006 was 30; October, 2006 was 29; November, 2006 was 20; December, 2006 was 30; and January, 2007 was 37. Remember, the contract was written 60 to 90 days or more prior to closing so if the high was May, 2006 the contract was likely between January and March.
For previous condo sale details, go to our web site, www.JamesBFoster.com and click on Condo Sales. For the time period of 1/1/2006 to 11/30/2006 the average price for a home on Maui was $963,626.00 which is up 3% from a year ago for the time period of 1/1/05 to 10/31/05 when the average price was $933,776.00. For the same time period the average price for a Fee Simple condo on Maui was $803,057.00 which is up 44% from a year ago for the same time period when the average price was $559,578.00 according to the RAM statistics.
We have gone in to the MLS database and pulled information for 2000 through 2006. In 2000 - 654 condominiums sold in the West Maui area for a total value of $209,064,010; in 2001 - 605 condominiums sold for a total value of $271,681,337; in 2002 - 730 condominiums sold for a total value of $240,178,915; in 2003 - 737 condominiums sold for a total value of $319,748,466; In 2004 - 700 condominiums sold for a total value of $375,033,467; and in 2005 - 682 condominiums for a total value of $408,582,315. At the end of 2006 - 434 condominiums sold in the West Maui area listed on the MLS for a total value of $351,312,614. The number of sales in 2006 was approximately 64% of 2005 and dollar volume for 2006 was 86% of 2005 for data entered in to the RAM MLS.
Mortgage Rates as of 1/3/07 – Conforming loans of less than $417,000 from Wells Fargo - 30 Year fixed 6.125% and APR of 6.335%; 5-Year ARM 6.125% and APR of 7.250% - Jumbo loans of greater than $417,000 – 30 Year fixed 6.375% and APR of 6.525%; 5-Year ARM 6.125% and APR of 7.168%
If you would like to view the most current sales statistics for Maui or West Maui Condominiums, you can go to my web site www.JamesBFoster.com and click on Condo Sales in the upper left corner of the home page or go to http://www.JamesBFoster.com/condosales.php. If there are any specific condominium complexes that you wish to be notified by email when a condominium becomes available for sale, send me an email as I check the MLS data about four times daily, and if a new listing comes on the market, I immediately notify any clients who have requested that information. Many owners also like to track what the units are selling for in the building where they own which they can do from my site.
Some recent news about what is going on in Maui.
Holiday Weather – The weather over the holidays has been close to perfection and I am sure the tourists and visitors would agree.
Medical Facilities on Maui – The citizen’s action group PUSSH and supporters want the Certificate of Need (CON) process currently required in Hawaii modified or abolished to allow new medical facilities to be constructed on Maui. There currently is an effort under way to have the reconsideration of the Malulani CON on Maui rather than Ohau. Representatives of Malulani filed an appeal asking for reconsideration of a decision to disapprove Malulani. The new web site for PUSSH supporting Malulani is www.maui-PUSSH.org Please visit the web site and send your letter and emails supporting the new hospital, Malulani and requesting the elimination of the CON.
Lahaina Gateway – Across from Cannery Mall is expected to open in the third quarter of 2007. The 140,000-square-foot center will be the largest shopping complex in West Maui and is being built on 11 acres. Four new tenants are Maui Dive, Quiet Storm, Lids and Sunglass Designs.
2007 Mercedes-Benz Championship Schedule - Monday, January 1 & 2 Professional practice round at The Plantation Course; January 3 Pro-AM tournament at The Plantation Course; January 4 First round at The Plantation Course; January 5 Second round at The Plantation Course; January 6 Third round at The Plantation Course; and January 7 Final round at The Plantation Course;
State and businesses gearing up for tax hike - Excise tax on everything from food to cars will soon rise on Oahu to fund a multibillion-dollar rail project. Officials estimate the tax hike could cost a family of four about $450 a year and raise up to 239 million annually to pay part of the cost of the proposed rail line. The tax surcharge was passed by the state Legislature last year and increases the current 4% general excise tax to 4.5% on January 1, 2007. While the tax increase in the statewide excise tax only applies to Oahu, the state has ruled that all companies selling products on Oahu will have to pay the tax. That includes neighbor islands companies selling products on Oahu, or an Oahu-based company doing business primarily on another island.
New Maui Mayor Charmaine Tavares makes appointments – She has appointed Jeff Hunt to serve as planning director; Colleen Suyama as deputy director of the department; Jo-Ann Ridao as county housing commissioner; appointed Kalbert Young to continue as finance director; Frederick Pablo as budget director; and Sheri Morrison to lead her administrative team as managing director.
Maui lost a “Quiet but powerful force” – Masarui “Pundy” Yokouchi was 81 years of age when he passed away on November 30, 2006. He was largely responsible for Maui Arts and Cultural Center that opened in 1994 after years of work and lobbying by Yokouchi. Maui remembers him as an individual who spent his life helping others, living life to the fullest with time for everyone, no prejudice. He was successful in life, business, politics and charity.
A Fantastic Year for Tourism – Visitors have been spending $10 million a day in Maui County and as a result, the visitor industry is enjoying "an exceptional year," even after taking into account unplanned earthquakes and wildfires. The year of 2006 will go down as a banner year with visitor spending on Maui up 20 percent and certain to surpass $3 billion; it was already past $2.8 billion through October. Spending per person per day is up 6 percent. The share of the transient accommodation tax paid by hotels that will go to the Maui County government will top $22 million this year, she said. That is an increase of $2 million from last year, which in turn was $2 million more than the year before.
West Maui Planner Status Report - The new West Maui planner position is intended to deal with development-related concerns, as distinguished from an old concerns the county addresses. Those with questions for West Maui Planning Issues can call 808-270-7735. Some of the projects currently under review by the planner - Hyatt Addition, Kapalua Central Resort project, renovation of the Royal Lahaina Resort, the Residences at Kapalua (formerly Kapalua Bay Hotel), Cannery Mall expansion, and others.
Real Estate & Financial Planning Tips
Tax Deferred Exchanges & Replacement Property – For sellers of property participating in a tax deferred exchange, locating a suitable replacement property can often be a difficult obstacle to successfully completing the exchange which can save sellers thousands of dollars in tax savings, some time hundreds of thousands.
To facilitate the tax deferred exchange process for our clients we have placed our securities licenses with Welton Street Investments, LLC. Welton Street is the leading NASD Member Broker/Dealer formed exclusively to work with commercial real estate professionals offering TIC investments as 1031 exchange options and direct investments. Welton Street works with quality TIC real estate sponsors, providing access to a broad and deep array of institutional quality TIC investment properties providing due diligence, research & securities compliance. Welton Street utilizes three key areas of due diligence before real estate sponsors and TIC investment replacement properties are selected and presented for investor consideration: 1) Audit and Analysis of the Real Estate Sponsor; 2) Analysis of TIC Program Structure & Fees; and 3) Analysis & Underwriting of Replacement Properties.
If you are contemplating selling highly appreciated real estate during 2007 and would like for us to provide an analysis of how to best structure your transaction please call us at 1-888-661-7994 or send us and email at Jim@JamesBFoster.com
HARPTA – The anticipated increase in the state capital gains tax rate - Hawaii Real Property Tax Act was vetoed by the Governor. The taxes collected under the HARPTA law will NOT increase from 5 to 8.25 percent beginning January 1, 2007. HARPTA is a withholding tax generally imposed on the transferee/buyer when a Hawaii real property interest is acquired from a nonresident person.
RPT exemptions deadline approaching - Department of Finance - Real Property Tax Division - The Department of Finance, Real Property Tax Division today reminded real property owners that the deadline for filing claims for real property tax exemptions for the 2007-2008 tax year is Tuesday, January 2, 2007. If you missed the deadline for this year there is always next year.
Real Estate Market Status - 2006 was the year that some real estate forecasters had been predicting for several years. It was the end of the boom that was characterized by historically low interest rates, frenzied sales, large-scale new construction and rapid price appreciation. But it was not a bust, as many real estate markets in the country still experienced above-average sales. All of the sudden the seller's market morphed into a buyer's market. The signs began to appear toward the end of 2005 that the market was transitioning, although it seemed sudden at the time all the signs were there before.
Real estate is expected to be economic drag in 2007 and hopefully the Fed will cut the funds rate back to 4%. If this occurs do not expect the U.S. economy to pick up again until the fourth quarter of 2007, when the combined effect of interest-rate cuts and a gradual turnaround in the construction cycle should take hold.
Useful Internet Sites:
http://www.PlateWire.com/ Ever want to get even with the Looney Toon drivers who cut you off and go on down the highway tailgating and causing general havoc? Didn’t want to get involved in a police report? Here’s your chance to even the score without any big hassle! Just jot down the miscreant’s license plate number and go to this neat site where you can enter it along with a description of the offensive behavior. You can also browse and search through your state selection from thousands of reports. As you might imagine, some are quite colorful. Now you can share your indignation with the world!
http://FutureMe.org/ Want to set up an email message to be sent on any date you pick in any year at any time during the next 30 years? How about a reminder each week for the next year to the children to take out the trash, clean up their room and do their homework? How about a note to yourself each day for the next month to lay off cake for the New Year? This is a simple service. Just type in the address of your desired recipient, your message, select the date you want the message sent and click “Send to the future” It’s as easy as that. Let your imagination take over from there!
http://www.ExpressPDF.com/ Why spend a bundle buying expensive software to convert files to the popular and useful PDF format? You may prefer to use this handy place to get the same thing done – simply and at no cost. This service provides for a raft of file formats. All you do is select the file you wish to convert and click the “Convert” button. A link to the converted PDF file is in an e-mail that is instantly sent to you. This one trick pony will even convert web pages for you.
Easy – quick – and it’s on the house!
http://www.SleepingInAirports.net/ Stuck in an airport for the night with no hotel space available? Maybe you should visit this handy site that contains hundreds of tips for those stranded overnight. You can read contributions from fellow travelers describing their pleasure or disdain for airports around the world.
You will also find tips for coping with an unexpected sleepover, lists of favorite and least favorite airports, airport photos and lots of information that will be helpful if you find your self stuck for the night. Sweet dreams!
http://www.Pandora.com/ If you love music, use this site to enjoy the type of music you identify – exactly as you ordered it. No downloads – no cost – just a little advertising.
Type in the name of one of your favorite songs or artists, a “station” appears that plays songs that are musically similar to the song title or artist you provided. This site is one of the best! Try it!
http://www.Komando.com/ This is a great site for staying current on new technology, new software and internet issues.
Kindest Regards, Jim Foster
Chase 'N Rainbows Real Estate, Inc.
P.O. Box 10398
Lahaina, HI 96761
Toll Free 888-661-7994
Direct Line 808-661-7994
Cell 808-870-5858
Fax 808-667-2957
Real Estate for Sale www.JamesBFoster.com
Vacation Rental www.ChaseNRainbows.com
EmailJim@JamesBFoster.com |
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