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May, 2006 - Newsletter for the Maui Market
Don't forget; if you currently own a property and would like to be notified when there is a new listing in your particular complex, we can set you up to automatically receive the new listings via email. The service is also available for those interested in purchasing a condominium, home, land or other property. If you provide me with your first and last name, your email address, and the condo complex you wish to be notified of, we can program the system to notify you as new listings become available.
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 in the West Maui Area with the total value of $ 317,599,199.00; and at the beginning of May, 2006 there are 354 condominiums for sale in the West Maui area and the total value is $321,932,077.00 The condominium for sale inventory since July, 2005 has been as low as 165 and is up to 354 for May 1, 2006. The “for sale” inventory continues to increase.
The total condominium sales for West Maui during the month of August, 2005 was 40 and the total value was $21,749,104.00; for the month of September, 2005 total condominium sales was 51 and the total value was $36,318,521.00; for the month of October, 2005 total condominium sales was 32 and the total value was $18,973,291.00; for the month of November, 2005 total condominium sales was 38 and the total value was $28,453,380.60 ; for the month of December, 2005 total condominium sales was 43 and the total value was $25,171,967; for the month of January, 2006 total condominium sales was 36 and the total value was $23,362,643.00;for the month of February, 2006 total condominium sales were 44 and the total value was $30,594,578.00; for the month of March, 2006 total condominium sales was 36 and the total value was $30,194,584.00; and for the month of April, 2006 as of 5/1/06 in the MLS data, total condominium sales were 42 and the total value was $41,368,525.00 The total condominium sales for August, 2005 was 40; September, 2005 was 51; October, 2005 was 32; November, 2005 was 38; December, 2005 was 43; January, 2006 was 36; February, 2006 was 44; March, 2006 was 36; and April, 2006 was 42.
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 3/31/2006 the average price for a home on Maui was $971,412.00 which is up 7% from a year ago when the price was $910,152.00. For the same time period the average price for a fee simple condo on Maui was $646,664.00 which is up 25% from a year ago for the same time period according to the RAM statistics.
We have gone in to the MLS data base and pulled information for 2000 through 2005. In 2000 - 654 condominiums sold in the W. 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 - 698 condominiums sold for a total value of $374,342,467; and in 2005 - 672 condominiums for a total value of $402,340,315.00. To date for 2006 (January thru April) 175 condominiums have sold for a total value of $136,890,330.00.
Mortgage Rates as of 5/1/06 From Central Pacific Home Loans – House/Condo: 6.125% 30yr fixed 2.0 pts ( 6.35 APR) 6.375% 30yr fixed 1.0 pt ( 6.5 APR) 6.75% 30yr fixed No Pts (6.79 APR) No Docs: 6.375% 30yr fixed 1.0 pt ( 6.5 APR) House/Condo: 5.875% 15yr fixed 1.0 pt ( 6.0 APR) Condotel: 6.75% 30yr fixed No pts ( 6.79 APR)
$1M Stated Income: 6.875%, 30yr 1.0 pt (7 .00 APR). No Income, 80/20 & Stated Land loans (Pts incl. origination)
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. 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.
ATA (www.ATA.com) is the airline flying out of Honolulu (HNL), Maui (OGG) and Hilo (ITO) to many convenient locations so you can check the web site for schedules.
GO! Is the new interisland airline that is ready to start operations as of June 9, 2006. They have a $39 one-way “for as long as we don’t fly full.” They will use six 50 passenger Canadair Regional Jet 200 aircraft initially and replace them with larger jets as the carrier builds its customer base.
Satellite Planning Office for West Maui is finally opening an office in Lahaina and a planner will be assigned to for the West Maui area. The new West Maui planner, Jeff Hunt will process most projects for the West Maui area.
Water, sewer fee increase likely for Maui County as Maui County Council members appeared likely to approve of 9% to 11% for water and approximately 10% for sewer.
Del Monte Produce, Inc. announced that it will end it Hawaii pineapple operations by mid-2008. Maui Gold is a niche pineapple producer that emphasizes its sweet and juicy flavor and will continue to be grown in Hawaii. Other crops that are increasing in production are noni, macadamia nuts and papaya. The bitter tasting noni juice sells for about $30 a bottle and is promoted as a remedy for fever, skin infections, stomach pain and respiratory ailments. Oils of Aloha, a producer of macadamia nut oil sees production of macadamia nuts continuing to grow. Agriculture should continue to be important in Hawaii, to keep it green and not covered by homes.
Kapalua Bay Hotel closed for good after 28 years of business. The hotel and shops will be replaced by the Residences at Kapalua Bay and the Ritz-Carlton Club, Kapalua Bay. There will be 84 private residences with prices starting at $4 million. The Ritz Carlton will build another 62 residences, to be sold in one-twelfth intervals. Contact Jim Foster for further information about these properties or one-twelfth intervals.
Kaanapali North Golf Course is undergoing renovation, and will reopen for play in November, 2006. It is part of a two year $13 million investment to enhance Kaanapali’s courses and golf facilities. Guests can look forward to a whole new look and feel to the Kaanapali experience later this year.
West Maui needs to push Maui County Council to implement “impact mitigation fees”. For years the West Maui area has taken a back seat to infrastructure replacement, school improvements, highway modifications, medical facilities and a host of other things. The property owners and residents of West Maui should continuously send a strong message to the Council members and all state officials that we absolutely need to implement impact mitigation fees for traffic, parks, schools and all infrastructure requirements for immediate and future needs in the West Maui area. If you receive this newsletter and would like to receive the email addresses of the Maui County Council members, just sent me an email and I will provide you with them. Approving new developments without having the infrastructure to accommodate it is an “insane” approach. Maui County’s primary industry is tourism and we are now hearing tourists complain about traffic congestions and other problems caused by development approvals without proper mitigation measures in place.
West Maui Baking Company is producing delicious pastries and is located in Building A in the Emerald Plaza Center, Lahaina Business Park across from the Cannery Mall. The owner-Chef, Richard Jean Noury is a first generation American of French parents with 20 years experience in his family owned and operated French bakeries and cafes. At the Emerald Plaza location you can purchase Brioches, Blueberry and Raspberry Cream Cheese Danish, Cinnamon Raisin Rolls, Vanilla and Chocolate Cream Puffs, Éclairs and other delicious treats. They also have excellent Breakfast “Specials” so stop in and visit.
Average Island House now exceeds $970,000 however the market is beginning to moderate or slow. We are transitioning now from a Seller’s Market to a Buyer’s Market with slowing appreciation. As an example, last year in June, 2005 the number of condominiums for sale in West Maui area was approximately 165 and at the end of April, 2006 there are approximately 354 condominiums on the market for sale. We are seeing longer Days on Market (DOM), more price reductions and Sellers being willing to negotiate.
Real Estate Tips
Now that April 15, 2006 is past don’t forget where all of your 2005 tax information is located and start preparing for April 15, 2007. For your peace of mind, try and keep all of your data organized and ready to send to your accountant or CPA by the end of the year if possible. Start your planning early as it relates to selling major assets and your tax liabilities for 2006 – 2007.
In viewing how many property owners are currently holding title to their property on Maui I notice that many are holding title in a Living Trust. Often a person needs to decide whether a Trust is best for their circumstances or if a Will can accommodate their needs.
Generally a will would be indicated for the following circumstances:
- If the estate is small enough so formal probate is not required.
- If it is safe and reasonable to leave all of the estate through beneficiary or joint tenancy.
- Mental incapacitation is expected to cause problems with legal or financial transactions.
Generally a trust would be indicated for the following circumstances:
- Estate exceeds $75,000 to $100,000 and should not be transferred by joint tenancy.
- Possibility of an heir challenging the estate transfer. A trust, properly structured can typically withstand a challenge better than probate.
- If avoiding probate is an important goal.
- If the estate cannot be paid outright and immediately to the heirs.
- If there are significant death taxation liabilities.
- Asset protection is an important issue.
- Estate may require detailed or formal handing because of mental incapacitiation of the estate owner.
Trusts provide major family estate planning functions such as:
- Management of the estate during mental incapacitation.
- Probate avoidance.
- Reduction or elimination of death taxation.
- Controlled transfer of estate to proper heirs.
- Proteciton of the estate from legal problems.
People who have a trust set up should be aware of the difference between revocable and irrevocable trusts. If asset protection and privacy are important factors the irrevocable trust is superior to the revocable trust.
If you would like further information on this topic please call us or send us an email.
http://www.iconico.com/easyRead/ An add on for Internet Explorer, this allows you to magnify any HTML page as you surf the web. Once you apply this simple download, a + and - sign will appear on your browser tool bar. You can also print the enlarged or reduced version of the page in its new adjusted proportions. Another method is to hold down your Ctrl key and rotate the wheel on your mouse and this will also enlarge the print, not only HTML but also any document you have on the screen.
http://downloads-zdnet.com.com/3000-2381-10523512.html At this site you can add a desktop weather station which automatically retrieves your local weather. So with one click you can bring yourself up to date on current conditions plus hourly, daily plus detailed forecast plus severe weather alerts and view weather maps for over 77,000 cities around the world. There are lots of features that allow you to customize the weather reporting -- or just add your city and leave the rest alone. Not only is this valuable program and a freeware product, but unlike other earlier weather programs, it contains no form of bad stuff like spyware, viruses or Trojans.
http://ideas.live.com/ Want to stay in touch with new developments at Microsoft? This is the site for you for a peek inside their brainstorming sessions on the new betas they are going to release. New programs such as: Windows Live Toolbar beta (they all start with “Windows Live” and end with “beta”), Messenger, Mail, One Care, Safety Center and others.
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
Email jim@jamesbfoster.com
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