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June, 2007 - Newsletter for the Maui Market
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Another service we provide is the 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 interested or owns a condominium property on West Maui. If you would like to subscribe to the Real Estate Market eUpdates or to get a list of all condominium properties that we send the eUpdates for, email Won at Won@JamesBFoster.com.
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 455 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. The year to date ending April 30, 2007 average price for a home on Maui is $1,020,725 which is up 6% from a year ago for the same time period ending April 30, 2006 according to RAM statistics.
Vacationers who travel here year after year may find it wise to put their investment dollar into a Maui vacation rental condominium. You will have a place to enjoy while you are here and then an income producing rental property to help defray the costs when you are not here. The year to date ending April 30, 2007 average price for a condo on Maui is $713,078 which is up 3% from a year ago for the same time period according to RAM statistics for the year to date ending April 30, 2006. Interest rates are currently stable making it a very good time to buy.
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; May, 2007 there were 472 condominiums for sale with the total value of $424,095,260.00; and at the beginning of June, 2007 there are 455 condominiums for sale in the West Maui area with the total value of $415,187,129.00. The condominium for sale inventory since July, 2005 has been as low as 165 and is up to 455 for June 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; for April, 2007 total condominium sales were 27 and the total value was $16,766,000.00; and for the month of May, 2007 as of 6/1/07 in the MLS data, total condominium sales were 27 and the total value was $30,156,179.00. 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; April, 2007 was 27 and May, 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 4/30/2007 the average price for a home on Maui was $1,020,725.00 which is up 6% for the time period of 1/1/06 to 4/30/06 when the average price was $962,991.00. For the same time period the average price for a Fee Simple condo on Maui was $730,107.00 which is up 3% for the same time period when the average price was $705,437.00 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 6/1/07 - 149 condominiums sold in the West Maui area listed on the MLS for a total value of $120,464,179. 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 for week of June 4, 2007 – from Town Island Mortgage, LLC – Full docs: 6.00% 30yr fixed 2.0 pts (6.23 APR); 6.25% 30yr fixed 1.0 pt (6.38 APR)
6.50% 30yr fixed No Points (6.58 APR); No Docs: 6.625% 30yr fixed No Points (6.70 APR); Interest Only: 6.125% 5yr ARM 1.0 pt (7.47 APR);1st Time 95%: 6.75% 40yr fixed 1.0 pt (6.89 APR); $1M: 6.50% 30yr fixed No Points (6.58 APR) No Income, 100%, & Stated Land loans, too (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 or go to www.JamesBFoster.com/condosales.php.
Some recent news about what is going on in Maui.
Weather – May and as we progress in to June, the weather continues to be excellent and has been around 85 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 – Jan Shields, a nurse who was previously at Maui Memorial Medical Center and I have coordinated the establishment of the Association for Improved Healthcare on Maui (AIHM) whose mission is to serve as an advocate for the creation of a system that will provide excellent healthcare services to all of the citizens and visitors of Maui County. AIHM will first focus the acute needs of a private, state of the art, full service, teaching hospital in Kihei; and a private second or satellite hospital in West Maui. AIHM has been established as a Limited Liability Company until it obtains its Non-Profit status as a 501 (c) (3) from the IRS. 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
Maui Restaurant Market & Tony Romas – West Maui looses two more restaurants, the E & O Trading Company closed it’s doors at the Cannery Mall and the Zuihao on Front Street. A new restaurant many of the mainlanders are familiar with is Tony Romas, an international restaurant chain, Tony Roma’s celebrated the grand opening of its 230th restaurant at 736 Front St. in Lahaina May 10th. the world’s largest casual dining concept specializing in ribs and also serving homemade soups, salads, burgers, sandwiches, as well as some very popular appetizers, including award-winning Buffalo wings and a world-famous hand breaded onion ring loaf. The restaurant will open for lunch and dinner daily, and accept all major credit cards. The new restaurant is handicapped accessible.
Companies Finding Big Money Far Below The Surface – A new business in Hawaii is DSH International, Inc. (doing business as DOHAWAII™) and is the world’s first purveyor of commercial amounts of desalinated Hawaiian Deep Ocean Water. Their web site can be found at www.deepoceanhawaii.com This impeccably pure water, harvested from 2000 feet below the ocean’s surface west of the island of Oahu,is desalinated by Reverse Osmosis and stored directly into 5,200 gallon (20,000 liter) disposable bladders within standard ISO 20 cargo containers. Available FOB Honolulu, these storable, stackable containers are internationally delivered and provide manufacturers with an extraordinary ingredient: nature’s most protected water which is uniquely pure, mineral-rich, and untouched by surface contamination. In addition, because the water harvesting, processing, and containerization the DOHAWAII™ technology is modular and mobile, it is adaptable for use on any appropriate vessel and well-suited to government applications as well as emergency water production.
Roads In Lahaina - The Maui Planning Commission approved a special management area to four-lane Honoapiilani Highway between Lahainaluna Road and Aholo Street. The Commission endorsed the concept of “collapsibility” – if the opening of the Lahaina bypass takes the pressure off the highway through Lahaina, then maybe that road could go back down to two lanes. Commissioners expressed doubt that that would ever happen, but they liked the concept. Initially when the DOT first presented the idea of extending a four-lane Honoapiilani another mile through Lahaina in 2004, there was skepticism and some outright opposition. The skeptics have since been won over, including Council Member Jo Anne Johnson who testified as a resident of West Maui saying she was neither for nor against the project but was concerned about it’s safety.
Lahaina Bypass Status – The Hawaii’s Statewide Transportation Improvement Program’s four-year draft fiscal plan plots state and county projects includes earmarked funds for Phase 1B-1 of the West Side roadway as “high priority” in 2008 and 2009.
Once Phase 1A is complete, construction on Phase 1B-1 is to begin. The contractor who won the bid was Hawaiian Dredging and groundbreaking for the $48 million Phase 1A is slated later this year in the July/August time frame. The 3,300-foot corridor between the future Keawe Street extension and Lahainaluna Road is forecast for completion late 2008. Construction of Phase 1B-1 is predicted to commence early ’09. The 1.6-mile, two-lane corridor extends from Lahainaluna Road to Hokiokio Place in Launiupoko, with a bridge spanning Kauaula Stream. The redefinition of Phase 1B-2 is in process. The proposal is to extend the southern terminus in Launiupoko further south.
Maui County Council Preparing To Set 2008 Taxes – There are proposed changes in several categories: Homeowner – $2 per $1,000 of value; down from the current $2.50;
Improved residential – $4.85, down from $5; Unimproved residential – $5.35, down from $5.86; Apartment – $4.55, down from $5; Commercial – $6.25, up from $6; Industrial – $6.50, no change; Agricultural – $4.50, no change; Conservation – $4.75, no change; Hotel/Resort – $8.20, no change; Time share – $14, no change.
New Maui Developments Finding Opposition - Groups were formed to seek opposition to a 1,400-unit project. The 670-acre Honua’ula development came under attack from multiple fronts Monday night during a forum on how much development is too much in South Maui. There was much criticism as the project prepared to seek land use approvals from the Maui County Council. The forum was to cover project plans by both Honua’ula, also known as Wailea 670, and Makena Resort, but discussions focused on Honua’ula, with calls to cut back the project or to block it completely.
Development of Commercial Properties on Maui - Maui retail and commercial business space vacancies are the lowest they’ve been since at least 2001. Construction costs for low-rise commercial buildings are about $300 a square foot, not including land. At these prices, developers would have to charge in excess of $4.50 per square foot per month in office rent to make development viable,” he said. For retail space, the average asking price for base rent varies from $3.20 to $4.76 per square foot per month.
Vacancy rates this year are about 4.58 percent for retail space and 4.29 percent for office space. On Maui, private building permits in 2006 were a record $979 million (including residential as well as commercial projects). For developers there is a wait of 10 years or more to move land from agriculture to groundbreaking which translates in to enormous holding costs.
Slowing Economy – The state Council on Revenues has lowered its predicted revenue growth forecast for this fiscal year indicating that the growth of Hawaii’s economy has slowed. Hawaii will collect about $88 million less than estimated but should not impact the $10.5 billion two-year budget that was just passed.
Real Estate & Financial Planning Tips
While part of the real estate downturn is behind us now, the buyer's market will likely continue for at least two more years. The foreclosures are expected to surge and more price declines are expected.
If you own property on Maui and were one of thousands who were surprised at the recent hike in Maui County taxes but did not appeal the new assessments, be ready when the new assessed value comes to you for 2008. This means you should know the current market value and other comparable market values of similar properties. Be familiar with the Appeal Form and what is required, however if you don’t have one contact us and we will email or mail you one. Some owners in various complexes banded together and retained attorneys to represent them as a group when they received the new assessed value. The assessed values for some condominiums are realistic and others are substantially higher than current market value.
The Standard real estate contract, long known as the Deposit Receipt Offer & Acceptance (DROA) is being revised and the new standard form will soon replace the DROA. The new standard real estate contract will be called “Purchase Contract” (RR2-1). If you would like a copy of the new contract when it is adopted send an email to me with your request or call me on the phone 1-888-661-7994 and we will mail one to you.
IMPORTANT! IMPORTANT! IMPORTANT! If you are contemplating being involved in a Tax Deferred Exchange or Reverse Tax Deferred Exchange, please make sure you do your “Due Diligence” as it relates to your Qualified Intermediaries (“QI”) Some of the questions you should ask of your QI prior to selection: 1) Will the QI legally represent the investor if they are audited? 2) Will they put the investor’s funds into a separate account? (Many QI’s commingle investors funds.) 3) Is the QI firm bonded? If so, what amount is the bond for? 4) Will they give you a copy of the bond? (Check the policy to insure it is current and that it does not expire while the funds could be at the QI.) If the answer to any of these questions is “No”, you should continue evaluating QI’s that can answer “Yes” to each of the above questions, in addition to any other questions posed.
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 1-888-661-7994 or send us an email at Jim@JamesBFoster.com.
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.naturalreaders.com/ How about a butler to read the news to you each morning? This software converts any text you highlight on the web into spoken words so you can listen to text instead of reading from the screen. And as long as this neat software is running all you need do is press the program hot button on your keyboard to hear any selected text. This neat little program can also read you your e-mail, your word documents – in short any text you can see on your screen in just about any program. It will also convert text into an MP3 or WAV audio file, so you can listen later after downloading to your iPod or burning it onto a CD.
http://www.geni.com/ How’d you like to build a family tree and get your relatives to do most of the work? This is a new genealogy site with a new attitude. Instead of making you do all the work, the site allows you to invite in relatives, who use their knowledge of the family history, and let them fill in their information. It looks like when everyone gets through doing their bit we’ll end up with a huge consolidated family tree of the world! And like many other noble causes there is no cost to use this neat service.
http://www.ohdontforget.com/ This is a simple and easy to use tool that really works! Just go to this great place, enter your cell number and a text reminder. Then schedule the time you would like it delivered and Shazam – your cell phone will alert you right on time! You can set up birthday reminders for the rest of the year and get your “to do” reminders right on schedule. You can also use this little web service to remind others about an event at a specific date and time. Its uses are only limited by your imagination. The simplicity of this program will remind you of Google and there is no cost to use this one trick pony.
http://www.zvents.com/ Want to find out what’s going on around town? Then this is a great place to start. You can search by date, zip code, insert a mileage radius and select the type of event such as Arts & Crafts, Community, Business & Tech, Dance, Fairs & Festivals, Food & Dining, Music, Performing Arts, Sports & Outdoors or Visual Arts. In addition you can add your event and it will be picked up here and at any applicable media partner where it will also appear locally on the web and in print. There are lots of additional bells and whistles here. Nice resource!
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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