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May, 2007 - Newsletter for the Maui Market
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Property for Sale in New Developments in West Maui
A new condominium villas development - These Villas will be located in eight separate buildings on the twenty four acre site of the old Royal Lahaina Resort; the first resort developed at Kaanapali Beach and will consist of two bedroom units from 2,482 square feet up to four bedroom units with 4,807 square feet. If you would like more information please contact Jim at 1-888-661-7994 or send an email to Jim@JamesBFoster.com
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 or send an email to Jim@JamesBFoster.com.
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 or send an email to Jim@JamesBFoster.com.
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 or send an email to Jim@JamesBFoster.com.
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 472 and seemed to peak at 491 on April 18th and has gone down since. Properties are requiring more time to sell 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. Luxury home sales in Kapalua and Kaanapali helped push average sales prices higher from $966,844 in 2006 to $1,063,611 this year. Median prices, however, fell from $699,000 to $650,804. Condominium sales of 216 in the South and West Maui markets made up 89.6%, of the county’s 241 first-quarter condo sales this year. The number of sales was down 39 percent compared with the 393 units sold in the first quarter of 2006. The average sales price was up 19 percent, from $640,793 to $759,786, and the median sale price went up 15 percent, from $458,000 to $525,000.
Because of fewer sales, total dollar volume was off 27 percent from $251.8 million to $183.1 million.
Condominiums for Sale - 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; February, 2007 there were 431 condominiums for sale with the total value of $393,681,669.00; March, 2007 there were 458 condominiums for sale with the total value of $420,941,268.00; April, 2007 there were 479 condominiums for sale in the West Maui area with the total value of $429,708,159.00; and at the beginning of May, 2007 there are 472 condominiums for sale in the West Maui area with the total value of $424,095,260.00. The condominium for sale inventory since July, 2005 has been as low as 165 and is up to 472 for May 1, 2007. The “for sale” inventory on West Maui continues to increase.
Condominium Sales - The total condominium sales for West Maui during the month of 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; for January, 2007 total condominium sales were 37 and the total value was $33,091,000.00; for February, 2007 total condominium sales were 26 and the total value was $16,330,000.00; for March, 2007 total condominium sales were 32 and the total value was $24,121,000.00; and for the month of April, 2007 as of 5/1/07 in the MLS data, total condominium sales were 27 and the total value was $16,766,000.00. 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; January, 2007 was 37; February, 2007 was 26; March, 2007 was 32 and April, 2007 was 27. 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 1/1/2007 to 3/31/2007 the average price for a home on Maui was $1,063,611.00 which is up 10% for the time period of 1/1/06 to 3/31/06 when the average price was $966,844.00. For the same time period the average price for a Fee Simple condo on Maui was $781,378.00 which is up 20% for the same time period when the average price was $650,355.00 according to the RAM (Realtor Assoc. of Maui) statistics. Condo sale in Wailea/Makena, Kapalua and Kaanapali impacting the Fee Simple Condo average price.
We have gone in to the MLS database and pulled information for 2000 through 2007. 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; 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 5/1/07 - 123 condominiums sold in the West Maui area listed on the MLS for a total value of $91,097,000. 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 5/1/07 – from Town Island Mortgage, LLC – Hse/Condo: Full Docs: 5.75% 30yr fixed 2.0 pts (5.98 APR); 6.00% 30yr fixed 1.0 pt (6.13 APR); 6.25% 30yr fixed No Points (6.33 APR). No Docs: 6.125% 30yr fixed 1.0 pt (6.25 APR); Interest Only: 5.75% 5yr ARM 1.0 pt (7.11 APR); 1st Time 100%: 6.875% 40yr fixed 1.0 Pt (6.99 APR); $1M: 6.25% 30yr fixed No Points (6.33% APR); No Income, 100%, & Stated Land loans, too (Pts incl. origination) Week of April 30, 2007
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. If there are any specific condominium complexes that you wish to be notified by email when a condominium unit becomes available for sale, 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 and an Automatic Email Notification will be sent to you with a link to view the details of the listings through the Maui MLS. We DO NOT SHARE YOUR EMAIL ADDRESS or your contact information with anyone.
Some recent news about what is going on in Maui.
Weather – April and as we progress in to May, the weather has been excellent and HAS been around 80 degrees during the day and cool in the evening. Today, it is 83 degrees and light trade winds. Lucky to be on Maui, come visit and enjoy!
Medical Facilities on Maui – The effort to establish a public-private partnership to build a new hospital on Maui involving Maui Memorial Medical Center and Dr. Ron Kwon has been suspended indefinitely when Triad, a $5.15 billion publicly held corporation on the New York Stock Exchange, was sold. Hawaii now, with the introduction of Senate Bill 1792, proposes the following: 1) create boards for five regions within the Hawaii Health Systems Corp. by Jan. 1, 2008. The Maui region would cover Maui Memorial Medical Center, Lanai Community Hospital and Kula Hospital; 2) give the regional boards custodial care of all financial assets and real property, including land, structures, fixtures or other physical assets; 3) make the regional boards responsible for local governance, operations and administration of the delivery of services in each respective region; 4) exempt regional boards from state procurement laws; 4) provide for $750,000 to fund the transition of the regional boards; 5) assign duties and powers of the corporate board to corporation wide matters, including corporation wide budgeting, personnel policies, strategic planning and issuance of revenue bonds; 6) sets budgetary guidelines that call for the corporation board and the regional system boards to “collaboratively develop budgetary guidelines and annual operating and capital budgets for each facility. Senate Bill 1792 received approval as announced this morning with more local autonomy from the Hawaii Health Systems Corp., the managing agency of the state’s 12 community hospitals. It will require some time to see if things really change as a result.
Pacific Biodiesel based on Maui – BlueEarth, who proposed a Biodiesel plant on Maui has pulled back from its plans to depend on imported palm oil as a feedstock as a result of criticism that palm oil plantations are knocking down rain forests in Southeast Asia. MECO bought 73 million gallons of diesel last year and had an approved site for expansion of its generating facilities at Waena, near the Central Maui landfill. The first stage of BlueEarth’s proposed refinery at Waena would produce 40 million gallons, with two expansions planned to increase production to 120 million gallons. Hawaii Agricultural Research Corp. prepared a study which estimated some tree crops, such as Kukui, could produce oil to make 450 to 750 gallons of biodiesel per acre in Hawaii. Available farmland not needed for food crops would allow local production of seed or tree oil crops to make 80 million to 100 million gallons of biodiesel per year. Algae is another raw material getting attention. Optimistic forecast predict algae could produce enough fatty acids to make 20,000 gallons of biodiesel per acre.
Maui Pineapple Co will shut down fruit-canning operation - Maui Pineapple Co. will shut down its solid-pack fruit operation June 30, eliminating about 120 positions from its money-losing cannery. The company’s announced changes in cannery operations did not come as a surprise because the company had been struggling in the face of foreign competition as well as with labor, shipping and fuel costs. The fresh fruit operation will add another shift. A company spokesman said by discontinuing operations that are no longer competitive, they will be able to concentrate on the fresh fruit segment with the best chance for achieving and sustaining a niche market for Maui-grown pineapple. Until the big losses at the end of 2006, the company had intended to keep canning but to whittle its product down to just two (large) sizes of cans. Maui Pine has only 4% of the North American fresh market but 17% in the western states.
Most fresh pineapple comes from Central America, and like Del Monte and Dole go after Maui Pine’s market share by increasing quality and undercutting Maui on prices.
Another Fire in West Maui – In the Ukumehame area, south of Lahaina there was another brush fire, mostly in a state forest reserve. The fire started near Maui Electric Co. power poles before burning downhill. The county wildland team did a good job of keeping the flames from creeping toward one home on the slopes. There were no native plant habitats affected by the fire, which burned an area that has been burned before.
As the fire was well above Honoapiilani Highway, traffic wasn’t affected and the road remained open.
Another row of turbines possible – In the Maalaea area, Kaheawa Wind Power has begun preliminary work that could near double its production of electricity on Maui.
If Kaheawa adds another 27 MW to the 30 MW it can make now, and when Shell WindEnergy Inc. completes its 40 MW wind farm at Ulupalakua, Maui could have wind capacity equal to more than a third of peak demand, now a little more than 200 MW but growing. Maui has a rich wind resource but a small transmission system that limits how much wind it can use. MECO is still learning how to manage fluctuations in voltage due to Kaheawa’s variable output. On days and nights of fluky winds, Kaheawa may be putting out 7 to 8 MW but will drop to zero without notice. MECO then has to keep a diesel-fueled standby unit humming to take over. Part of the incentive for Wind Turbines on Maui is the state’s 20-20 plan, which mandates that 20 percent of electricity will come from nonfossil sources by 2020. MECO should make that goal. Wind is a great resource, but it’s still only one of several, like solar and biomass."
Souki again sinks Superferry EIS – Maui Representative Souki has blocked a second bill in the 2007 Legislature that would have required an environmental impact statement on the Hawaii Superferry. His reason for doing so was that it’s unfair to pick on a single harbor user. Souki, chairman of the House Transportation Committee, refused to schedule Senate Bill 702 for a hearing by the committee, effectively killing the bill. Rep. Souki said, “Inasmuch as there will be a new EIS for the whole harbor, it’s wasteful, expensive. You cannot justify doing an EIS after the fact for one thing that’s using the harbor.”
MLP seeks input on Honolua Bay options – A growing tide of community concern over proposed plans to develop Honolua Bay and Lipoa Point, Maui Land & Pineapple Company Inc. (MLP) announced it is taking a step back and considering all options, including negotiating with Maui County for possible sale of the area. West Maui Councilwoman Jo Anne Johnson introduced the resolution, which states that the area “holds great cultural, environmental, archaeological, and recreational value and should be preserved,” and asks the administration to pursue negotiations with MLP.
The Lipoa Point area, which totals 583.4 acres, includes some of the Honolua Bay area, Windmills Beach, and lands formerly and currently in pineapple cultivation. MLP’s plan proposes 40 home sites mauka of Honoapiilani Highway, an 18-hole links-style golf course, a surf park and a cultural park. Residents of the area do not believe their vision and the vision of MLP are in agreement. The residents really don’t want a golf course and 40 luxury homes; they’re looking for something to benefit the entire community. Elle Cochran and her husband, Wayno, a Honolua surfer and resident for 35 years, formed “Save Honolua” along with Tamara Paltin, Kathy Corcoran, Shawn Reid, Doug Pitzer, John Carty, Nikki Stange, Kanoa Nishiki, and Wayne Nishiki. They are everyday people who really care about the area and want to express to the public that we all need to get involved in the planning process.” It is clear that there are many stakeholders who care about Honolua Bay’s future. Hopefully the dialogue can stay focused on the larger goal of recovering the health of Honolua Bay, and not degenerate into negative approaches that could hurt the process that ought to have been started years ago. For more information about MLP’s proposed plans, or to apply to the MLP advisory panel, visit www.malamahonolua.com
Real Estate & Financial Planning Tips
If you own a condominium you should maintain a file with the following information:
- File Folder
- Original contract and closing documents
- Original Title Insurance Policy and legal description.
- Seller's Disclosure Form filled out and updated
- Lease Summary & Disclosure if leasehold and not fee simple
- Income & expenses for a minimum of last 12 months
- Real Estate Tax Assessment information
- Inventory List if furnished unit
- Condominium Documents
- Directors Minutes
- Project Info, Site Plan & Floor Plan
- Proforma with income and expenses
- Digital Photographs of the interior and all furnishings.
In addition to having this file, you should maintain an ongoing relationship with a local realtor who will provide you with an annual or semi-annual market value of you condominium. This is of benefit in terms of financial planning, comparison to current assessed value and the unfortunate event your estate or part of the marital community goes through probate, the past valuations are very useful. Your realtor can also provide you with a Net Proceed Statement that will show what your approximate net proceeds would be in the event of a sale. This is beneficial in working with your accountant/CPA, estate planning attorney or financial planner in correctly doing both your current and future tax and financial planning.
When the IRS issued a ruling that impacted the Private Annuity Trusts, another method of minimizing the tax impact on sale became the Deferred Sale Trust and is a contractual arrangement between an individual or a trust in which the individual transfers property to the trust in exchange for the trust’s agreement to pay the individual a certain amount for his or her lifetime. A Deferred Sale Trust is not a “Delaware Statutory Trust”. If you would like information on the Deferred Sale Trust, send us an email at Jim@JamesBFoster.com or call on our toll free number at 1-888-661-7994.
Did you know that Oil & Gas Programs can be used to complete Tax Deferred Exchanges for Vacation Homes, Second Homes? For additional information give us a call at 808-661-7994 or send us an email at Jim@JamesBFoster.com.
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 times 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(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 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
Useful Internet Sites:
http://www.zoho.com Here is a full featured word processor on-line that allows you to create and share documents online without installing any software on your computer. All you need is a browser and an internet connection. The advantage of being on-line is you can easily share your work with others and if you are traveling without your lap-top you can work from any computer around the world. There is no cost to use this service.
http://www.google.com/mobile Start using Google services on your device in 3 easy steps and access Google from anywhere and at anytime. With Google’s new mobile service, you can use the best of Google tools right from your cell phone. Once hooked up you can search, access maps, get directions, use Gmail, get news and use lots more of the Google services.
http://www.idtheftsmart.com Identity theft is a threat to anyone with an identity. Attempting to resolve identity fraud issues on your own can be complicated and very time consuming. Here is a site that takes an important extra step in helping you deal with the threat or an actual identity theft. This service helps you monitor your credit and provides you with complete fraud resolution services if you become a victim of identity theft.
http://41pounds.org With the average American receiving 41 pounds of junk mail each year we need to reduce it. This service stops most common junk mail such as credit card offers, coupon mailers, sweepstakes entries, magazine offers and insurance promotions, as well as any catalogs you specify. Once signed up you should see a noticeable improvement within 6-8 weeks and within four months your junk mail should be reduced by 80 to 95%. The organization does charge a modest fee but it is well worth it.
www.gethuman.com The GetHuman project is a consumer movement to improve the quality of phone support in the US. This free website is run by volunteers and is powered by over one million consumers who demand high quality phone support from the companies that they use. Go here and learn how to get out of “Voicemail Hell”.
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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