Honolulu Real Estate Views

Digerati Bell Weather May Ring In A Good Future For Honolulu

2009-11-05T18:54:06Z

Little Atherton California’s housing market may be a precursor for good things in the Honolulu housing market. A recent Wall Street Journal article points out that the Atherton housing market has been a bit slow over the last few years, but recently there may be signs that things are getting better.

“But behind that slowdown there has been more activity than meets the eye. Since May, Silicon Valley-ites have jumped back into the Atherton market, lured by the lower prices. Of the dozen or so Atherton homes sold for more than $5 million this year, 10 were completed in May or after, according DataQuick’s analysis of public records. Last month, one newly built home sold for around $14 million. The builder, Jeffrey Wise, says the 10,000-square-foot white-clapboard house was snapped up before it even went on the market.”

CLICK HERE TO READ THE WALL STREET JOURNAL ARTICLE

The technological power wizards from Silicon Valley are known to like trophy wives, cars and properties. Given the good values available in Honolulu and Hawaii’s upper end real estate markets, it follows that confidence in Atherton could mean more solid buyers buying at today’s good prices.

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If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

Some Honolulu Homes Selling…Very Fast!

2009-11-05T02:34:12Z

As a Honolulu Realtor, I am always looking for the right home for the clients that I am working for. In the last week, I saw two Honolulu homes come on the market that might meet the needs of two of my buyers. It is amazing to note that both sold within days of coming in the market! One was located in Nuuanu and the other in Hawaii Kai.

CLICK HERE FOR A MLS FACT SHEET ON THE NUUANU HOME

CLICK HERE FOR A MLS FACT SHEET ON THE HAWAII KAI HOME

Why did these homes sell so much faster than other homes?

1. They were in the Honolulu market’s financial sweet spot. Many times in the past I have said that there is a great deal of strength in good quality homes that are priced under $1,000,000. These were priced at $949,000 and $799,000 and therefore right where many local buyers are looking.

2. They showed very well. Both homes were in very good condition, most buyers considering one of these could have moved right in without updating or making any change.

3. They were located in core Honolulu. As referenced in past posts, the core of Honolulu is where the vast majority of Oahu residents would like to live. Since these homes were within this area, their quick sale is reflective of the strong demand for these core locations.

4. They were located in very desirable school districts. Maemae Elementary and Hahaione Elementary are both pubic schools that many people believe to be acceptable alternatives to sending their kids to Honolulu’s expensive private schools. These schools allow attendees to save as much as $17,000 to $18,000 per year in private school tuition.

In summary, for the right properties, in the right locations, the Honolulu market is very healthy and strong. I believe that this strength during the current financial uncertainty that we now find ourselves in, means that when the market strongly turns, this core section of Honolulu will see robust appreciation rates.

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If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

End Of Year Great Time To Buy Honolulu Distressed Property

2009-11-02T19:34:02Z

The Wall Street Journal reminded me of a terrific opportunity between now and the end of the year.

“Act before year’s end and you just might be able to make the most of the glut of foreclosed properties currently up for sale. That’s because, while banks traditionally have been unwilling to come down on the list prices of foreclosed properties, a year-end push to clear their books of foreclosure backlogs could be a boon for haggle-happy homebuyers.” CLICK HERE TO READ THE WALL STREET JOURNAL ARTICLE

As I have said in the past there are not many REO’s or foreclosures in core Honolulu, however, there are opportunities in outlying areas. For the purpose of this post, my focus is on why the bank and asset manager may be motivated to sell at year end. Here are a few things to keep in mind.

1. Adding cash to their balance sheets. Year-end financial reports tend to govern the perception of how good or bad a company may be doing. By selling and closing, REO properties banks will add cash to their balance sheets and this will make them look financially stronger.

2. Getting rid of liabilities. REO’s, non-performing loans and properties in foreclosure are liabilities on a banks balance sheet. By selling now, the bank not only adds cash to the positive side of there financial statement, but they eliminate a negative for the liability side of their picture. I believe that the WSJ is right that this is powerful motivation for a bank.

3. Taxes losses. Losses on loans may be able to be used as offsets against income, by closing in 2009 the banks may be able to use these losses to minimize taxes that may be due.

4. Asset manager performance evaluations. Asset managers are employees and, I understand, many of them are evaluated based different metrics. One of the measurements may be the amount of time a property has been on the market. By getting properties sold in 2009, when it comes time for a raise, they position themselves for stronger performance evaluations.

If you would like to discuss buying an REO on Oahu, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

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Economist Predicts Hawaii Recovery In 2011

2009-10-30T19:37:13Z

Paul Brewbaker is one of my favorite economists. Since following him beginning in 1991, I have found him to make insightful predictions, many of which I disagree with at first. Paul is quoted in the Pacific Business News as forecasting a turn in the Hawaii economy in 2011. This may mean more of the same bumpy ride in 2010.

“Slow recovery seems likely to leave unemployment rates unchanged until 2011,” Brewbaker, the bank’s senior economic adviser, wrote in the forecast posted on the bank’s Web site this week. “A jobless recovery like the one in 2002-03 is a likely scenario at least in 2010.” CLICK HERE TO READ THE PACIFIC BUSINESS NEW ARTICLE

CLICK HERE FOR A COPY OF THE ECONOMIC FORECAST

How does this apply Honolulu Real Estate? Here are a three ways the Oahu real estate market might be impacted.

1. The tale of two cities. I believe Oahu will continue to be dissected into 2 markets. The core Honolulu market which I believe will remain flat or see slight decreases in values over the next 18 months. The second is rest of Oahu, but not including Mililani (Waipahu, Waipio Gentry, Kapolei, Makakilo, Ewa Beach, Waianae and the north shore), job losses and higher inventory will probably more negatively impact these areas and, therefore, I expect to see lower values in this area.

2. The local market will drive the bus. For now, I expect to see locals (people that live here) be the prime players in our real estate market. This is because the local person expects to be here for the long-term and may see these low prices as opportunities to get into the market at cheap prices. Their long hold horizon means that they can withstand possible short-term shifts down in market prices.

3. Sluggishness in properties that require jumbo financing. Loans larger than current conventional maximums have been hard to obtain and terms for these loans can be punitive as compared to conventional FNMA and FreddieMac loans. The lack of good large loan financing means prices for homes and condos in the upper end could see significant downward pressure. All of these factors mean that buyers in the upper segment should expect to be able to negotiate exceptional prices and terms. Sellers in the upper end would be well served to get sold now, because a softening market and long day on market times will end up making them net less from the sale.

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

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Good Time To Add Value To Your Honolulu House Or Condo

2009-10-29T19:45:50Z

Today’s Wall Street Journal on-line had an article that reminded me that now may be a great time to remodel your Honolulu house or condo. Think about this, if the work you would like to do would have cost $100,000 in 2005, if the WSJ is right, you could get the same work done today for $80,000, that’s a savings of $20,000!

“Depending on the region and the job, some homeowners are paying as much as 20% less for home-remodeling projects than they would have a few years ago. Many contractors are willing to accept smaller jobs and “handyman” projects that they used to snub. And more projects are being delivered on time and on budget—a stark contrast from the boom years.” CLICK HERE TO READ THE WALL STREET JOURNAL ARTICLE

Here is how you could benefit from that remodel or addition.

1. You get to enjoy the beauty of your fresh and new surroundings.

2. As the Honolulu real estate market rebounds you will have a property that will seem much fresher and newer, when it becomes time to sell you should make more money.

3. If you did the work in 2005, it would be nearly five years old today, if you sold five years from now that remodel would be ten years old. By remodeling today, a sale five years from now would benefit from a five-year-old remodel.

4. Since you will pay less you will need to barrow less (assuming you use a home equity line of credit) and therefore, when it becomes time to sell you will have more equity in your property.

If you need referrals to a few contractors for your job, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

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Honolulu Ranks 133 Out Of 203 Cities In Foreclosure Filings

2009-10-28T18:51:22Z

Pacific Business News is reporting that Honolulu’s foreclosure rate is up as compared to last year.

“Honolulu ranked 133rd for foreclosure filings of the top 203 metropolitan areas, according to RealtyTrac’s Q3 2009 U.S. Foreclosure Market Report. Honolulu had a total of 1,186 foreclosures, or one filing for every 282 households, up 24.8 percent from second quarter 2009 and up 85.8 percent from third quarter 2008.”

CLICK HERE TO READ THE PBN ARTICLE

Given that this places Honolulu 133^rd out of 203 surveyed cities (Las Vegas is #1), I am optimistic that we are so far down the list. Let’s hope that this is the bottom and we drop further down the list when the next one comes out.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

Lessons From 911 Apply To Honolulu Real Estate

2009-10-27T20:09:10Z

With Trulia, Zillow and other sources for real estate information, I am reminded of the problems created by technology in the pre-911 world. Prior to World Trade Center being hit, the USA’s intelligence community had been relying on our technological superiority in satellites and electronic eves dropping for intelligence on the bad guys. After 911 it become critically clear that there is no substitute for human beings on the ground.

This is true in real estate too. No amount of armchair researching via the Internet will give a buyer or seller a clear picture of what is really happening in a particular sub market of Honolulu real estate. Call me self-serving, but that’s where I come in. I am your boots on the ground! I can connect dots that provide a picture that can’t be seen from Google Earth or any other satellite-mapping program. You can’t smell the neighbors or hear a screaming child from you 21 inch LED monitor. That’s why I always make it a point to “kick a lot of stucco”, seeing a home, condo or neighborhood is the only way to catch nuances that might effect long-term happiness a real estate appreciation.

Today’s Wall Street Journal is reporting positive news showing in Standard & Poors/Case/Shiller home price index.

“”If the increases are consistent across the markets, this is key,” said Wharton School real estate professor Susan Wachter before the index was released. “Then we’re seeing the formation of a bottom.” However, Wachter along with other industry experts still worry that rising unemployment and more foreclosures could stifle the rebound. Another unknown is whether a temporary federal tax credit for first-time buyers will be extended to help boost sales.”

CLICK HERE TO READ THE FORBES ARTICLE

Note that the index does not include Honolulu, but I would not rely on it to determine a property move on Oahu in the first place. Use it like the CIA uses a satellite photo, it gives you a very general view of what might be going on, but always confirm the truth with human intelligence (me, Keahi Pelayo). Think about it.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

Chinese Airline Clearance Good For Honolulu Real Estate

2009-10-26T23:52:03Z

The Honolulu Advertiser recently reported that Hainan Airlines was recently approved for weekly flights to Hawaii.

“State tourism liaison Marsha Wienert said the first nonstop scheduled service from China to Hawai’i could provide a big boost for the long-anticipated increase in visitors from there. Wienert said it could begin around the first of next year while the state and the airline earlier had hoped for a start date before the end of this year. “It’s very good for us,” Wienert said Friday at a meeting of the Hawai’i Tourism Authority. With Hawai’i tourism struggling out of a slump, officials are looking to China as a much needed new market.”

CLICK HERE TO READ THE HONOLULU ADVERTISER ARTICLE

Since real estate values are tied to tourism, expansion into the Chinese market can only benefit our economy. Think about this, in a good year, Hawaii has 7,000,000 visitors to the state. With its billions of people, we only need a fraction of a percent of the Chinese to come to Honolulu and our market will turn around. If you wonder why a Chinese national might like Waikiki, take a look at the picture below to see what their beaches look like.

As this Asian market grows, owning a piece of paradise will become of interest to them and, I believe, you will see upward pressure on Honolulu real estate prices.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

Did Honolulu Real Estate Get Hit By “Disintermediation”?

2009-10-23T18:42:02Z

Brian Boero, of The 1000 Watt Blog, visited a Realtor fear that was running rampant as the Internet began to gain momentum in the mid-1990’s. I can remember Realtor concerns that the Web was going to make us irrelevant. Essentially, the thought was that if all of the Honolulu home and condo listings were available online, then why would a consumer need a real estate agent? I can’t tell when it happened, but it seems this fear has dissipated and we Realtors are now able to be much more efficient at selling properties.

“In fact, according the California Association of Realtors 2009 Buyer Survey, 90% of all buyers became aware of the property they eventually bought through their agent.That tells me the 15-year war over listings data is even more pointless than I thought. Turns out consumers still need a Realtor to find a home even if they search online, on their own, for months.”

CLICK HERE TO READ THE ENTIRE BLOG.

Here are four of the positive benefits brought to real estate transactions by this new-fangled technological world.

1. A more informed consumer. In the old days, a buyer or seller had to go through their Realtor to get any information on the market. Now the client can do a great deal of research before they contact their agent. This allows them to get comfortable with the market and how they fit into it. Once I am contacted, I find that most of my clients are much closer to making a move than they were before the advent of the Internet.

2. Better teamwork between an agent and client. Clients can now gain much of the basic information concerning a property’s details through a computer and based on this initial research homes can be eliminated or added to their wish list. Once a client narrows the homes to a more manageable list, I can then review them and help to cull any properties that are outside our search box (based on my experience and long-term market knowledge). This teamwork helps to eliminate the frustration of having to view all of the properties in person and saves both the client and agent great amounts of time.

3. Arm chair quarterbacking. Since most smart Realtors are now loading extensive photos and/or videos (some homes are better suited for photo and not video and vice versa) a potential buyer can now see numerous homes from the comfort of their existing home. Allowing a buyer to build a context of the market in less time and physical effort. The more a buyer or seller knows about the market, the better their overall decisions will be.

4. Better communication. Most of my clients use email to a greater or lesser extent. Certainly email has allowed a much quicker communication methodology, however, it has forced me to become a better writer. Not only does the written word give me a much-needed paper trail for my file, but it also requires me organize, analyze and deliver my thoughts in a clear cogent manner. The bottom line is there is much better communication between client and Realtor. The better everyone communicates, the happier the consumer becomes and the possibility of future problems is lessened.

In Summary, I believe that the Net has had mostly positive outcomes for everyone involved in real estate. Proof positive that we can’t control information, we need to adapt and make new technologies work to everyone’s advantage.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

Honolulu Triplex-Close To Diamond Head & Kahala

2009-10-22T19:04:47Z

If you are looking for a super clean three unit in the center of Honolulu, this clean and cute project might be perfect. The following are the details of the unit.

Price: $998,000

Part Of Town: Kaimuki (Kahala Heights for those that know)

Street: 21^st Avenue, Honolulu, HI 96816

Bedrooms: Upstairs-two (2)/downstairs one (1)/back house-two (2)

Bathrooms: Upstairs-one (1)/downstairs one (1)/back house-one (1)

Lot Size: 7,500 square feet

Interior Square Footage: 2,156

Lanai Square footage: 0

Parking: Open parking on the lot and street parking

Maintenance Fee: $0

Condition: Very clean. No deferred exterior deferred maintenance.

CLICK HERE FOR A MLS FACT SHEET

Use for your 1031 Exchange property or buy it to live in one and use the other’s rent to subsidize your monthly housing cost.

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Feel free to email me at keahi@lava.net or call me at 808-398-3220, if you have any question.