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November, 2006 - Newsletter for the Maui Market
Aloha!
Don't forget; we provide a free Automatic E-mail Notification Service where an automatic email notification goes out to specific recipients when ever a new listing becomes available for a particular condominium complex. In each of these notifications includes a link to view the brand new listings in the MLS. We DO NOT SHARE YOUR EMAIL ADDRESS or your contact information with anyone. To subscribe to our Automatic E-mail Notification Service, please send us 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.
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 406 and seemed to peak at 417 around the middle of August and has slowly dropped. Properties are requiring more time to sell and Buyers have a much larger inventory of properties for sale to choose from. The peak season is upon us and we are now seeing an increase in showings with more visitors on island. Halloween always attracts visitors and occupancy jumps for the holidays in November, December and January.
In the 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 in the West Maui area and the total value was $333,616,070.00; July, 2006 there were 392 condominiums for sale in the West Maui area and the total value is $346,937,598.00; August, 2006 there were 393 condominiums for sale in the West Maui area and the total value was $344,119,142.00; September, 2006 there were 413 condominiums for sale in the West Maui area and the total value was $369,322,455.00; October, 2006 there were 408 condominiums for sale in the West Maui area and the total value is $ 366,608,574.00; andat the beginning of November, 2006 there are 407 condominiums for sale in the West Maui area and the total value is $ 357,086,324.00. The condominium for sale inventory since July, 2005 has been as low as 165 and is up to 407 for November 1, 2006. The “for sale” inventory continues to increase.
As of August 2006, the total condominium sales for West Maui during the month of August, 2005 were 52 and the total value was $31,852,104.00; for the month of September, 2005 total condominium sales were 58 and the total value was $39,539,021.00; for October, 2005 total condominium sales were 38 and the total value was $23,503,291.00; for November, 2005 total condominium sales were 48 and the total value was $35,051,564.00 ; for December, 2005 total condominium sales were 47 and the total value was $26,101,467; for January, 2006 total condominium sales were 42 and the total value was $28,574,643.00;for February, 2006 total condominium sales were 48 and the total value was $32,995,078.00; for March, 2006 total condominium sales were 40 and the total value was $32,199,584.00; for April, 2006 total condominium sales were 43 and the total value was $41,898,525.00; for May, 2006 condominium sales were 51 and the total value was $39,644,886.00; for June, 2006 condominium sales were 40 and the total value was $ 32,533,500.00;for July, 2006 total condominium sales were 30 and total value was $26,212,000.00; for August, 2006 total condominium sales were 27 and the total value was $31 ,375,500.00;for September, 2006 total condominium sales were 28 and the total value was $ 23,831,000.00; for the month of October, 2006 as of 11/1/06 in the MLS data, total condominium sales were 26 and the total value was $ 21,024,299.00. 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 27; September, 2006 was 28 and October, 2006 was 26.
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 9/30/2006 the average price for a home on Maui was $1,023,229.00 which is up 9% from a year ago for the time period of 1/1/05 to 9/30/05 when the average price was $934,773.00. For the same time period the average price for a Fee Simple condo on Maui was $812,782.00 which is up 56% from a year ago for the same time period when the average price was $522,021.00 according to the RAM statistics.
We have gone in to the MLS database and pulled information for 2000 through 2006. In 2000 - 654 condominiums sold in the West Maui area for a total value of $209,064,010; in 2001 - 605 condominiums sold for a total value of $271,681,337; in 2002 - 730 condominiums sold for a total value of $240,178,915; in 2003 - 737 condominiums sold for a total value of $319,748,466; In 2004 - 700 condominiums sold for a total value of $375,033,467; and in 2005 - 682 condominiums for a total value of $408,582,315.00. To date for 2006 (January thru October) 379 condominiums have sold for a total value of $312 ,393,015.
Mortgage Rates usually provided by Town Island Mortgage were not available for this newsletter edition. As of November 2, 2006 rates for 30 year fixed are 5.84% and last week were 5.94%; 15 year fixed are 5.55% and last week were 5.66%; 5/1 ARM are 5.57% and last week were 5.67%; 30 year fixed rate jumbo 6.14% and last week 6.21%; and 5/1 jumbo ARM 5.77% and last week 5.85%. Rates seem to be trending down in the short term.
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.
Sansei Kapalua has reopened – This was in last month’s newsletter but I left it in because a group of us dined there on October 16, 2006 and it is one of the few restaurant experiences that exceeded my expectations, just expect it to be very busy. One of the favored restaurants in West Maui, Sansei Seafood Restaurant & Sushi Bar, in the Kapalua area closed when the mall it was located in was demolished. It is open again for business and now located at 600 Office Road, up the hill from the Ritz-Carlton Kapalua and their phone number is 808-669-6286. It is situated in a stand-alone building in the new Honolua Village above historic Honolua Store. Sansei is island-renowned for its Thursday and Friday late-night menus and karaoke from 10 p.m. to 1 a.m. All guests over 21 years of age get 50 percent off all sushi, appetizers and drink specials – and singing karaoke is thrown in for free. They will be open for dinner seven nights as week – just like before – beginning at 5:30 and running until 10 p.m. So the early-bird specials will remain the same seven nights per week. Just be seated and then place your order by 6 p.m. for 25 percent off of your food tab.
Earthquake on Hawaii – On Sunday, October 15, 2006 Hawaii had an earthquake estimated at 6.6 magnitude with the epicenter on the Big Island of Hawaii in the northwest area of the Big Island 10 miles north-northwest of Kailua Kona. All of the islands experienced a loss of electricity ranging from an hour to twenty four hours, including all of the major resorts. In West Maui, the Front Street area received power back by around 10:00 A. M. and then it began coming on going north to Kapalua. Travel was disrupted for thousands who had cancelled flights that had to be rescheduled. Considering the magnitude of the quake we were all very fortunate for minimal damage, injuries and loss of life.
Heavy Rain Fall – Maui’s mountain are greening up again. We have had heavy rains the last couple of days with flooding in many areas but partial sunshine expected to return again tomorrow then sunny Saturday and in to next week with showers returning around Friday, November 10 th or so. Maui has had a lot of dry weather so the rain fall is a welcome by most unless you are on vacation and want sunshine for your beach time.
Kaanapali Golf Course – T he re-construction of the Kaanapali Golf North Course, part of a two-year, $13 million investment to enhance Kaanapali’s courses and golf facilities should be completed by November 15 th – 22 nd and open for play.
Medical Facilities on Maui – A newly formed citizen’s action group, PUSSH, will begin their initiative to overturn the State of Hawaii CON (Certificate of Need) process which was responsible for Maui not having the ability to develop and construct the new Malulani Hospital in the Kihei area headed up by Triad Hospitals. They have been polling the politicians running for office and will endorse those in favor of improved medical care and facilities.
Traffic on the Honoapiilani Highway, DOT and the Lahaina Bypass – The Lahaina bypass is a proposed nine-mile highway that would run mauka of Honoapiilani Highway from Launiupoko to Honokowai, offering commuters and visitors a route around the heavily congested roads through Lahaina town and the Kaanapali Beach Resort. State transportation officials are still reviewing proposals from contractors to design and build the first phase of the Lahaina bypass highway. Transportation officials may issue a notice to proceed on the design phase of the project in late December and notice to proceed on construction would then be issued no later than April 13. Lahaina Bypass Now, a citizens group formed this year to lobby the state in an effort to speed the development of the bypass, plans to release results of a traffic survey it took of West Maui commuters and workers. The survey is expected to include ideas on how to relieve traffic congestion on the west side. Don Emigh, a long time Lahaina resident, has suggested that the state owns enough right of way along Highway 30 to just expand to four lanes. Maui needs an immediate resolution to protect it’s major industry, “Tourism”!
Superferry Issues - Second Circuit Judge Joel August indicated the state may be planning changes at Kahului Harbor without doing a required environmental review. If that is correct, the court “is going to reconsider the decision it made” on August 17, 2006 to deny a petition by three groups challenging the adequacy of the environmental impact statement done to expand the harbor for, among other users, the Hawaii Superferry. There is currently a lawsuit by Maui Tomorrow, the Kahului Harbor Coalition and the Friends of Haleakala National Park which contends that the regular runs of the Superferry will increase the movement of alien pests among the islands and have adverse impacts on traffic around the harbor on Maui.
Real Estate & Financial Planning Tips
Health Issues – If you have elderly parents or are approaching 65 years of age yourself, it is time to try and sort through Medicare and Medicaid. If you have been paying in to Social Security along with your employer, you will automatically be signed up for Medicare which is federally funded but Medicaid has different requirements and is funded by both federal and state funds. I have an excellent article “Options When The Uninsured Have A Health Crisis” which I would be happy to email you if you send me a request to Jim@JamesBFoster.com
Tax Time Approaching – Give yourself an early holiday gift and start organizing your tax information to be prepared for the year end and the filing of your 2006 Federal and State Tax returns. All of your 2006 financial and real estate transaction information should be organized and documented. Check your files for your closing documents and make sure you are keeping records and receipts of repairs which can be an offset against income and major upgrades or remodeling costs that will reduce your capital gains tax when the time comes to sell. Now is the time to make plans for selling real estate this year, particularly resort oriented real estate as the busy season is almost here and buyers will be viewing properties for sale. Schedule your real estate closing for 2007 and report it by April, 2008.
Asset Conversion – If you have appreciated assets that are non-income producing then consider doing an IRC Section 1031, Tax Deferred Exchange. In Hawaii, where non-residents have to deal with HARPTA (State Capital Gains Tax) and the Federal Capital Gains Tax, an IRC Section 1031, Tax Deferred Exchange will allow you to retain the 22.25% tax on your taxable gain. Send us an email to Jim@JamesBFoster.com and we will help you with the process or call me on the toll free number 1-888-661-7994.
Useful Internet Sites:
http://www.findaflushot.com/ Hate to bring up this painful subject but now there are no excuses. This year it’s easier than ever to get you a flu shot! Now they have it down to a science so by simply typing in your zip code, you can get a list of all of the scheduled Flu shot clinics being held in your area along with the places, times and dates. You can expand or narrow your search by distance and preferred date range. This resource also contains a good compilation of flu related and other health news. Good stuff at this time of year!
http://www.mouseprint.org/ These folks describe "mouse print" (which is not inherently illegal) as the fine print in advertising, a contract, or on a product label that is often tucked away out of easy sight. The trick is to find out what the "real deal" is by understanding how the mouse print changes the meaning or claims in the primary presentation. These folks do their abracadabra by featuring an ad’s fine print rather than the headline. They say that their goal is to "help educate the public about the catches in disclaimers". Along with this often entertaining information they also provide a plethora of links to interesting consumer resources. This will help you avoid the "gotchas"!
http://www.cnettv.com/ Want to keep up with the latest tech developments and learn about them on Internet TV? Now you can and this is a great place to do it! Here you will find hundreds of searchable TV reports such as "Tips and Tricks", "Gadgets and Gear" and "Tech News". You can view any reports you wish -- send them to a friend --, save them or add them to your favorite playlist. Were looking at the future of the Web here - it’s called video! Neat stuff -- and it’s on the house!
http://www.realtrends.com/ If you have big bucks and a thirst for real estate trend information you will probably want to subscribe to this service. But if you are pinching pennies (and who isn’t) you can get lots of good real estate trend information at the public portion of this great place. You can catch up on news regarding real estate trends and view the ten latest press stories there. The trick is to start with the first item under "News Stories" and click the "next item" arrow to page through the latest and greatest news trends. Trendy!
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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