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February 1, 2008 - Newsletter for the Maui Market
Aloha! Here is your eNewsletter for the Maui Market from Jim Foster
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Make sure you check out the Useful Internet Sites at the end of this newsletter which includes some valuable information.
Don't forget! We provide a free Automatic E-mail Notification Service that goes out to recipients whenever a new listing becomes available for a particular condominium complex. Each of these notifications includes a link to view the details of the brand new listing 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 condominium property you wish to be notified of.
Another service we provide is the Condominium Real Estate Market eUpdates which is sent out periodically to inform potential buyers and owners of specific condominium properties about the real estate market activities at those properties. This service is provided exclusively for those who own a condominium property or who are interested in a particular condominium complex on West Maui. If you would like to subscribe to the Condominium Real Estate Market eUpdates for a particular complex or to get a list of all condominium properties that are included in the eUpdates, email Won at Won@JamesBFoster.com.
Maui Real Estate – In the Housing Predictor’s forecast, Maui ranks number three in the Top Ten Hottest Markets for 2008 showing that no matter what the economy is generally, there are always hot markets somewhere in real estate. Maui and Honolulu both were listed in the Top Ten having regional economies that are healthy and have strong potential for being exceptionally prosperous through the end of the year.
2007 Maui condominium sales showed 1,179 closings, down -5% vs. same period last year. Average and Median sale prices Island-wide were up 4% and up 6% respectively vs. 2006 with the decline in closings being particularly apparent Napili, Honokowai, Kahana, Kaanapali and Central Maui areas. The Kihei, Wailea and Makena condominium 2007 closed transactions were well ahead of 2006 actuals. 2007 Maui land sales totaled 226 transactions and closings, down 11% vs. 2006, with Average and Median sale prices both declining by 20% and 18% respectively. A strong increase in Central Maui land sales was more than offset by land sales declines throughout the rest of the County.
The statistics provided by RAM is convincing data that Maui is more durable and sustaining than the US market as a whole. Asian interest appears to be increasing also with more interest from Japan, Korea and even China. Tourism data collected by the State of Hawaii also supports this view.
To view the 2007 Year End Statistics go to www.JamesBFoster.com and click on the tab Condo sales, then scroll down to Maui MLS Statistics 2007
The West Maui real estate market continues to favor Buyers with Sellers willing to negotiate their prices. The current inventory of West Maui condominiums for sale is now at 559 and the same date in 2006 it was 282. Properties are requiring more time to sell such as five to six months and Buyers have a much larger inventory of properties for sale to choose from. If you’re curious about current trends in Maui real estate and where the market is headed, the answer is - it depends on Location - it depends on if it is condominium or single-family residential - it depends on whether you look at volume, average or median prices. The current Maui real estate market looks steady with minor variations.
Condominiums for Sale - In the West Maui real estate market, at the beginning of January, 2006 - 226 condominiums with the total value of $226,520,200.00; February, 2006 - 280 condominiums with the total value of $281,793,835.00; March, 2006 - 297 condominiums with the total value of $286,082,559.00; April, 2006 - 350 condominiums with the total value of $317,599,199.00; May, 2006 - 354 condominiums with the total value of $321,932,077.00; June, 2006 - 362 condominiums with the total value of $333,616,070.00; July, 2006 - 392 condominiums with the total value of $346,937,598.00; August, 2006 - 393 condominiums with the total value of $344,119,142.00; September, 2006 - 413 condominiums with the total value of $369,322,455.00; October, 2006 - 408 condominiums with the total value of $366,608,574.00; November, 2006 - 407 condominiums with the total value of $357,086,324,00; December, 2006 - 428 condominiums with the total value of $361,399,109.00; January, 2007 - 410 condominiums with the total value of $372,238,031.00; February, 2007 - 431 condominiums with the total value of $393,681,669.00; March, 2007 - 458 condominiums with the total value of $420,941,268.00; April, 2007 - 479 condominiums with the total value of $429,708,159.00; May, 2007 - 472 condominiums with the total value of $424,095,260.00; June, 2007 - 455 condominiums with the total value of $415,187,129.00; July, 2007 - 475 condominiums with the total value of $432,797,008.00; August, 2007 - 469 condominiums with the total value of $420,479,301.00; September, 2007 - 474 condominiums with the total value of $430,914,408.00; October, 2007 there were 471 condominiums with the total value of $423,631,002.00; November, 2007 there were 466 condominiums with the total value of $416,008,907.00; December, 2007 there were 485 condominiums with the total value of $421,080,117.00; January, 2008 there were 511 condominiums with the total value of $445,656,447.00; February, 2008 there were 559 condominiums with the total value of $500,946,603.00; and at the beginning of March, 2008 there are 559 condominiums for sale in the West Maui area with the total value of $500,946,603.00. The condominium for sale inventory since July, 2005 has been as low as 165 and is up to 559 for February 1, 2008. The “for sale” inventory on West Maui continues to increase.
Condominium Sales in 2006 - The total condominium sales for West Maui during the month of January, 2006 there were 42 sales and the total value was $28,574,643.00; for February, 2006 there were 48 sales and the total value was $32,995,078.00; for March, 2006 there were 40 sales and the total value was $32,199,584.00; for April, 2006 there were 43 sales and the total value was $41,898,525.00; for May, 2006 there were 51 sales and the total value was $39,644,886.00; for June, 2006 there were 40 sales and the total value was $32,533,500.00; for July, 2006 there were 30 sales and total value was $26,212,000.00; for August, 2006 there were 28 sales and the total value was $31,885,500.00; for September, 2006 there were 30 sales and the total value was $24,770,000.00; for October, 2006 there were 29 sales and the total value was $23,359,299.00; for November, 2006 there were 22 sales and the total value was $13,414,600.00; and for December, 2006 there were 30 sales and the total value was $23,169,999.00. For 2006, the monthly average sales were 36 sales per month with the average sales value of $29,221,468.00 per month.
Condominium Sales in 2007 - The total condominium sales for West Maui during the month of January, 2007 there were 37 sales and the total value was $33,091,000.00; for February, 2007 there were 26 sales and the total value was $16,330,000.00; for March, 2007 there were 32 sales and the total value was $24,121,000.00; for April, 2007 there were 27 sales and the total value was $16,766,000.00; for May, 2007 there were 28 sales and the total value was $30,774,929.00; for June, 2007 there were 28 sales and the total value was $18,917,000.00; for July, 2007 there were 21 sales and the total value was $13,314,200.00; for August, 2007 there were 32 sales and the total value was $33,258,999.00; for September, 2007 there were 23 sales and the total value was $24,701,900.00; for October, 2007 there were 42 sales and the total value was $28,159,900.00, however this included a packaged sale of 19 units at Aina Nalu in Lahaina; for November, 2007 there were 15 sales and the total value was $15,930,000.00; and for December, 2007 there were 13 sales and the total value was $13,335,500.00. For 2007, the Month of December has seen the lowest number of sales in 2007. The monthly average sales were 27 sales per month with the average sales value of $22,391,702.33 per month.
Condominium Sales in 2008 - The total condominium sales for West Maui during the month of January, 2008 there were 20 sales and the total value was $16,186,800.00.
The total condominium sales for August, 2005 was 52; September, 2005 - 58; October, 2005 - 38; November, 2005 - 48; December, 2005 - 47; January, 2006 - 42; February, 2006 - 48; March, 2006 - 40; April, 2006 - 43; May, 2006 - 51; June, 2006 - 40; July, 2006 - 30; August, 2006 - 28; September, 2006 - 30; October, 2006 - 29; November, 2006 - 20; December, 2006 - 30; January, 2007 - 37; February, 2007 - 26; March, 2007 - 32; April, 2007 - 27; May, 2007 - 28; June, 2007 - 28; July, 2007 - 21; August, 2007 - 32; September, 2007 - 23; October, 2007 - 42; November, 2007 – 15; December, 2007 – 13; and January, 2008 was 20.
For previous condo sale details, go to our web site, www.JamesBFoster.com/CondoSales.php. For the time period of 1/1/2007 to 12/31/2007 the average price for a home on Maui was $920,807 which is down 1% for the time period of 1/1/06 to 12/31/06 when the average price was $933,691. For the same time period the average price for a Fee Simple condo on Maui was $831,951 which is up 3% for the same time period when the average price was $805,189 according to the RAM (Realtor Assoc. of Maui) statistics. Condo sales in Wailea, Makena, Kapalua and Kaanapali are having an impact on the Fee Simple Condo average price by increasing it.
We have gone in to the MLS database and pulled information for 2000 through 2007. In 2000 - 654 condominium units sold in the West Maui area for a total value of $209,064,010; in 2001 - 605 condominium units 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; in 2005 - 682 condominiums for a total value of $408,582,315; in 2006 - 435 condominiums for a total value of $351,782,614. In 2007, from 1/1/07 to 12/31/07 - 327 condominium units sold in the West Maui area for a total value of $271,290,428.00
Mortgage Rates for week of February 4, 2008 - from First Hawaiian Mortgage - Rates: Houses & Condos Full doc: 30 Year Fixed 5.375% @ 1.25 pts - 5.500% @ 1.00 pts - 5.875% @ 0.00 pts - 15 Year Fixed 5.125% @ 1.25 pts 5.250% @ 1.00 pts 5.750% @ 0.00 pts - 7/1 ARM Interest Only 6.000% @ 1.125pts Loans $625,500.00 to $1 Million - 30 Year Fixed 5.625% @ 1.25 pts 6.000% @ 0.00 pts Condotel: 30 Year Fixed 6.375% @ 0.00 pts (For contact information call Jim at 1-888-661-7994)
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 www.JamesBFoster.com/condosales.php.
Some recent and past news about what is going on in Maui.
Weather – As I am writing this newsletter today, February 4, 2008, it is partly cloudy but some sunshine today but forecaster are predicting more showers and clouds this week and maybe some clearing next week. January and February is about the middle of Maui’s tropical winter with shorter days and longer nights. Longer nights mean there’s less heating during the day and more time for the temperature to cool at night.
A Kaanapali Music Legend Bids His Final Aloha - Rudy Aquino and his wife and hula dancer Kanoelani have entertained at the Tiki Terrace five to seven nights a week for 15 years. Rudy is now a young 66 and is a music legend in Hawaii. With his voice and humor, he has entertained audiences with Aloha. In the early 1960s, when Don Ho was looking for a band to back him, the group Rudy played in, the Hawaiian Aliis, became Don Ho and the Aliis, playing at Duke Kahanamoku’s restaurant in Waikiki, recording albums, touring throughout the Mainland and appearing in various television specials like the Tonight Show with Johnny Carson. Since bringing his show to the Ka’anapali Beach Hotel in the early 1990s Rudy remained true to his roots, keeping Maui crowds singing and laughing with his classic mix of songs, jokes and audience participation. He and his wife moved to the Cook Islands where they will run a small inn on the beach and will be missed.
Record Amount Spent By Hollywood In Hawaii – The Hawaii Film Office shows that Hollywood producers spent a record Two Hundred Million while filming television shows and movies in Hawaii last year. Ben Stiller's "Tropic Thunder" and the upcoming movie reviving the "Indiana Jones" series were among the productions that filmed in the state and helped beat the previous record of One Hundred Sixty four Million spent in 2004.
Television and Movie producers can now get up to a twenty percent rebate on productin costs. The movie "Pirates of the Caribbean: At World's End" and the ABC television show "Lost" were among the productions that filed for state tax credits last year worth almost Twenty Six Million.
Kaheawa Wind Turbines Exceed Expectations - In its first full calendar year of making electricity, the Kaheawa Wind Farm produced 9.8 percent of the electricity Maui Electric Co. sold. Since beginning operations in the summer of 2006, the project has sold all of its output to Maui Electric Company at rates that will save the utility over $4 million
Details of the plan and operations can be found online at www.upcwind.com.
New Lahainaluna High School Cafeteria - Gov. Linda Lingle last week released $9,418,000 for the design and construction of a new cafeteria at Lahainaluna High School. Design is scheduled to begin in February 2008 and be completed in January 2009. Construction is scheduled to begin in June 2009 and conclude in November 2010.
The state also released $860,000 to upgrade the telecommunications system at Baldwin
Ritz-Carlton Resort in Kapalua reopens after $160 million renovation – Just in time to host the Mercedes-Benz Championship and open to the public, with 463 guest rooms and suites which feature dark wood floors, all new furnishings, travertine bathrooms, area rug designs with kukui florals, and Hawaiian print artwork framed with koa. The guest rooms offer the latest technology, including LCD flat-screen televisions, IPod docking stations, DVD players and wireless Internet access. The Banyan Tree, the hotel’s signature restaurant, has a new outdoor bar and lounge with ocean views and the
Kai Sushi is located in a new restaurant space and offers sushi and Japanese cuisine.
The Terrace restaurant features a plantation-inspired design enhanced by an expanded lanai enclosed in glass. The Alaloa Lounge has a black lava stone wall with a red ribbon of light inspired by the long path, or alaloa, from the mountains to the sea. The 10,000-square-foot, three-tiered pool includes a new children’s pool and enlarged cabanas with the latest technology. A new 24 hour Fitness Center, with dramatic ocean views and state-of-the-art equipment is also available to guests.
Wet Weather December and January but Conservation still needed - For the month of December and January Maui has been trying to make up for missed rainfall earlier in the year and Maui County experienced some of the wettest conditions statewide during December. Although it seems unusually rainy, Maui still needs to implement water conservation practices that can conserve the precious water resource being strained by new developments.
Royal Lahaina Resort - Construction is expected to begin August, 2008 but that is not certain. At first there will be two low-rise buildings near the ocean. These will contain 20 of the projected 126 villas. There have been some adjustments in asking prices to accommodate a somewhat uncertain resort real estate market. The Villas range from two-bedroom, two-and-a-half-bath units of 2,300 square feet (including lanai) to four bedrooms and more than 9,000 square feet. The first phase of the rebuilding has been completed, a $35 million renovation of a 12-story hotel tower.
Softer Sales in the Resort Real Estate Market - Statewide, sales are slowing, but prices continue to rise. It is still a seller’s market for the most expensive condominiums and single-family homes. Residential lots are leading the market down, and the lower-priced places are also softening. With sales of existing properties carrying the load, the overall sales prices zoomed 26.5 percent in 2004, 30.9 percent in 2005, 4.4 percent in 2006 and 18.6 percent in 2007. Maui percentages were lower but started at very high levels. Starting projects on Maui has been difficult, and the Big Island has overtaken Maui as the leading county for resort residential housing. Since 2003, average prices for all kinds of resort-residential housing on Maui have doubled to $1.9 million. At the present, interest rates are down and the dollar is down, which is good for foreigners. There is more interest now from Canadians, Russians, Japanese and Chinese.
Peter Merriman to open Kapalua restaurant - Celebrity chef and restaurateur Peter Merriman will open Merriman’s Kapalua at the oceanfront site of the former Bay Club.
Merriman’s Kapalua will be a chef-driven, fine dining restaurant specializing in locally grown, raised and caught foods. The new restaurant is expected to open to the public by June 2008. Merriman is a three-time finalist in the James Beard Awards for Best Chef, Pacific Northwest and Hawaii. He has won numerous awards and has been featured in national and international publications. He arrived in 1983 to work at the Big Island’s Mauna Lani Bay Hotel, Merriman soon became executive chef of the resort’s Gallery Restaurant and began to develop his vision as one of the original pioneers of Hawaii Regional Cuisine with his focus on local products.
Maui Room Rates & Occupancy Increase - Maui island’s occupancy rates went up by about 2.2%. Also Maui’s average daily room rates and revenue per available room continued to lead the state. Maui hotel’s November 2007 occupancy rate was 74.4% or 2.3 percentage points higher than the 72.1% for the same month in 2006. Maui’s average daily room rate for November was $234.31, or $12.02 higher than in November 2006. And, for the same months, revenue per room increased from $160.27 to $174.33.
Statewide, average daily rates and room revenue increased as well. The state’s average room rate went from $174.88 to $185.67, and room revenue rose from $130.65 to $134.59.
Medical Facilities on Maui - The Association for Improved Healthcare on Maui (AIHM) http://www.aihm-maui.org whose mission is to serve as an advocate for the creation of a system that will provide improved healthcare services to all of the citizens and visitors of Maui County has been making some excellent progress. For more information on making a contribution to this great cause, please visit www.aihm-maui.org/ourfriends.htm. To stay informed of what is transpiring with future approvals of either the Kihei or West Maui hospital, you can send me an email and request a subscription to the “Coconut Wireless” to either my email at Jim@JameBFoster.com or Jan@SunshineRainbows.com AIHM supporters will be attending the opening day of the legislature in Honolulu on January 16, 2008 to investigate the elimination of the Certificate of Need process required now for medical facilities in Hawaii.
Real Estate & Financial Planning Tips
Some of the most often overlooked real estate tax deductions: 1) Principal Residence Acquisition Mortgage Fee - If you purchased a home last year and you paid the mortgage lender a loan fee, usually called “points,” that “home acquisition mortgage loan fee” is tax deductible as itemized interest on Schedule A of your tax returns. 2) Home Mortgage Finance Loan Fees - If you refinanced your home loan or obtained another type of real estate loan, any loan fee or points you paid can only be deducted over the life of the mortgage, such as 15 or 30 years. 3) Un-Deducted Loan Fees - For previously refinanced home, you can deduct any remaining un-deducted loan fee in the tax year of the second refinance. 4) Any Mortgage Prepayment Penalty You Paid - If you paid a pre-payment penalty because you sold or refinanced your home, the pre-payment penalty qualifies as a deductible itemized interest. 5) Moving Cost - Whether you are a renter or a homeowner, you may qualify for the moving-cost deduction if you changed both your job site and your residence but were not reimbursed for household moving costs. 6) Casualty Loss - If you suffered a “sudden, unusual or unexpected” loss, such as fire, flood, hurricane, tornado, mudslide, theft, accident, water damage, riot, embezzlement, vandalism and rain, but were not paid by insurance or other reimbursement, you may be able to claim a casualty loss tax deduction. 7) Prorated Property Tax in Year of Home Sale or Purchase - This deduction is usually paid to the local tax collector as part of the sale closing procedure.
Maui County Real Estate Tax Appeals will have to be filed by April 9, 2008 at 4 PM – if you need the form it can be printed from www.mauipropertytax.com Many property owners were surprised last year when they received their assessment and did not file the appeal form by the deadline. The assessor’s office has been dealing with a back log of appeals.
In past newsletters, I have mentioned that the easiest way to minimize the tax impact when selling is to do a tax deferred exchange. If you have questions about tax deferred exchanges give us a call. If you are considering selling your property in Hawaii, a tax deferred exchange will exempt you from the 5% HARPTA withholding and also the Federal Capital Gains Tax. Planning in advance for the disposition or acquisition of assets is always a wise decision. Another invaluable tool for sellers in doing a tax deferred exchange is having the option of using tenant-in-common (TICs) for qualifying for replacement properties. Many property owners who currently own underperforming assets can sell those assets, taking advantage of tax deferred exchanges, and turn an underperforming asset such as land into an income producing asset. Call me or send me an email if you would like additional information at 808-661-7994 or email Jim@JamesBFoster.com
To facilitate the tax deferred exchange process for our clients, we have placed our securities license with Welton Street Investments, LLC. Welton Street is the leading FINRA/SIPC Member Broker/Dealer formed exclusively to work with commercial real estate professionals offering TIC (Tenant In Common) 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 2008 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
Useful Internet Sites:
www.citysearch.com Whether you are moving to a new town, traveling or just staying put there is an abundance of information on your area on the web. The trick is to retrieve the important things you need without getting overwhelmed. That's where this great place come s in handy. A quick visit to this great place with your zip code will give you up-to-date information on local businesses, restaurants, shopping, professional services and many entertainment categories such movies, theater, sports, galleries and museums.
www.ehow.com How to do just about anything. Ever scratch your head and say, "I wonder how to do that"? Every month over 4 million folks visit this site to learn how to do something from the clear and concise, step by step instructions provided. Whether you want to learn how to build a deck, train your dog to heel, lose weight, negotiate a raise, or fix a clothes dryer you'll find it all. There are thousands of "how to" helpers here along with a handy Google site search function. Some of the main categories are: Automotive, Computers, Finance & Business, Food & Entertaining, Home & Garden, Personal Care & Style, Sports and Travel.
www.gizmodo.com Gadget Heaven! Anyone you know a gadget freak? If so let them know about this site that is dedicated to everything related to gadgets, gizmos, and cutting-edge consumer electronics. In addition you'll find the latest news, reviews and recommendations for products including laptops, cell phones, PDAs, digital cameras, home entertainment and lots more. How about a sink faucet that has LEDs that light up in response to the water temperature. Blue is for cold, red is for hot. Or maybe a tiny 3 ounce cell phone with all the 3G trimmings: 1.3-megapixel camera, video recording, data transfer, and video-conferencing. Something new always happening here. Fun place to stay up with lightning speed change!
www.keyxl.com Great web site to locate shorter routes and bypass the mouse. In the computer world a shortcut is a key (or combination of keys) that instantly performs a function within a software program. These shortcuts for your keyboard can save you a ton of time but the problem is they are usually buried somewhere in a manual. This site has the largest collection of keyboard shortcuts found anywhere on the internet. Easy to locate the menu or search function provided to find the program you want a list of shortcuts for. Print out a temporary list until you have them committed to memory.
www.virustotal.com This site can identify, analyze and detect viruses, worms, trojans, and all kinds of malware by running them through over 30 top anti-virus and malware checking programs maintained on their web site with real-time automatic updates of virus signatures. Honored by PC World Magazine as one of the 2007’s one hundred best products of year in the Web Site Security category.
www.yourememberthat.com Want to have some fun? Listen to Marilyn Monroe sing happy birthday to JFK in 1962 or “Where’s the Beef” ad from 1984? You can be there to pay your respects at Babe Ruth’s funeral in Yankee Stadium. And if you’re a boxing enthusiast you’ll want to revisit the bout when Joe Louis hammered “Two Ton” Tony Galento in 1939. This site is an online community that shares video, audio, and images to help stir our memories of the past. Listen, watch and enjoy old television, news and commercials from the 30s, 40s, 50s, 60s, 70s, 80s, 90s.
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
Email Jim@JamesBFoster.com
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