Gary's Blog

Please e-mail me for a current list of all REOs (real estate owned by banks) and short sales in the County of Maui. This includes real estate on the three islands of Maui County- Maui, Molokai, and Lanai. The numbers have been consistently dropping as buyers absorb these bargains.

REO numbers dropped since my lastblog (about three weeks ago) from 63 active listings to 45, a 28% decline! New REO listings in the past 30 days dropped from 15 last month, to 12 this month. SFR (single family residence) REOs dropped from 24 listings to 20. And condo REO listings dropped from 20 to 14.

Short sale numbers dropped almost as dramatically. Last month there were 111 active short sale listings on the mls. Today there are 97. New short sale listings dropped from 20 last month to 17 this month, SFR short sales went from 54 active listings last month to 45 today, and condo short sale listings went from 50 to 46.

The writing is on the wall. Economics 101: supply vs. demand. Supply is shrinking, demand is growing. What do you think that will do to prices?

Bank of America Offering Up to $30,000 Incentive to Short Sale Sellers

Labels: kihei homes for sale, Makena Real Estate, maui real estate, maui realtor, maui realtors, property in Maui, vacation property in Maui, wailea homes, wailea homes for sale, wailea real estate

Visitor Arrivals Up The county of Maui saw visitor arrivals in February total 187,987, a 4.2% improvement over the same month last year. We were within 4% of the all time record high of 195,941 visitors in February 2008. February's numbers are more than 20% above the lows we saw in 2009 and 2010. A 13.1% hike in numbers from Canada boosted Maui’s increase in visitors. And Japanese visitors, although a small segment of arrivals here, increased by 32.1%. January saw the new record set for visitor spending in Maui County!

Home Sales See Best Winter in Years The past two months made up the best winter for sales of previously occupied homes in five years, when the housing crisis began. February sales were at a 4.59 million annual pace, according to the National Association of Realtors. That 13% higher than the sales pace last July, and up 2% from the previous month.

• The economy grew at an annual rate of 3% in the fourth quarter of 2011, according to the Commerce Department.
• The battered housing marked is showing signs of improvement. January and February comprised the best winter for sales of previously occupied homes in five years, according to the National Association of Realtors.
• Hawaii's Unemployment at 3-Year Low- down to 6.4% for February, the lowest since February 2009. Payroll rose by 2900 in February compared to the same month a year earlier. Maui County unemployment came down to 6.8% from 7.1% in January, Maui Island was at 6.7%, Molokai at 13.3%, and Lanai 3.8%.
• U.S. Consumer spending rose 0.8% in February, the Commerce Department said, which allowed economists to upgrade their estimates of first quarter GDP growth.
  

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Hot Pick of the DAY- Wailea Town Center #D-201

Unobstructed front row top-floor Ocean, Makena, Molokini, Kahoolawe & Outer Island Views. Spacious end-unit, 1616 s.f. 2 bd./ 2 ensuite baths. Fine interior details include Honduras Mahogany wood & travertine floors, cherry shaker-style soft-close cabinets,stainless Kitchen-Aide appliances & 5 burner gas cook-top. Plus, 9 ft ceilings, crown moldings, solid wood doors, Grohe fixtures & rain shower heads, eco-sensitive Rinaii on-demand hot water heater, inspiring granite & marble, built-in wine cooler, multi-zoned air conditioning, double-glazed low-e windows, elegant window treatments, & large walk-in closets & custom built-ins. Share the private pool & spa with just 6 other exclusive units. Enjoy your own private single car enclosed garage & an additional deeded parking space. Private elevator shared with only two other units. Walk to The World Class Shops at Wailea,Golf,Tennis, Fine Dining & Beaches. Great Value for an Equity View & Qualitative Interior.

Unemployment Drops to 6.5% Hawaii's unemployment rate declined again, to 6.5% in January from 6.6% in December. That good news happened the same day we saw the Dow Jones Industrial Average hit it's highest level since 2007. Nationwide, U.S. employers added 227,000 jobs in February, the third straight month of 200,000-plus job growth. The national unemployment rate remained 8.3%, but down substantially from the 9% just last September.

Foreclosure Filings Down 50% Foreclosure filings in Hawaii last month were half compared to a year ago, according to real estate research firm RealtyTrac. February had 473 foreclosures, the lowest level in four months.

Home Sales See Best Winter in Years The past two months made up the best winter for sales of previously occupied homes in five years, when the housing crisis began. February sales were at a 4.59 million annual pace, according to the National Association of Realtors. That 13% higher than the sales pace last July, and up 2% from the previous month.

• Besides the lower unemployment claims and booming stock market, consumers are sturdier. Consumer finances are fundamentally healthier than they were four years ago, with less debt burden. Debt payments as a percentage of after-tax income is now at its lowest point since 1994, according to the Federal Reserve.
• After an average 30% plunge in house prices since 2006, signs of recovery are showing up in several sectors. Apartment construction is growing. Construction jobs are slowly returning. Home builders are seeing more foot traffic. And now that consumers are less worried about a loss of home equity, they are spending more.
• U.S. Banks are lending more to businesses. Banks are healthier now, as are the prospects for their business customers. Bank lending to businesses rose nearly 14% last year to $1.35 trillion, according to the Federal Deposit Insurance Corp.
• State and Local Government Cuts are Slowing. Since 12/2008, state and local governments have slashed 613,000 jobs. But the cuts appear to be easing. State governments have added 10,000 jobs so far this year. Local governments last month added 2000.
• Companies cannot squeeze more output from workers. During and right after the Great Recession, companies shrank their workforces because demand plunged and fewer workers were needed. Once demand started growing again, companies were reluctant to hire immediately. They managed to produce more with the employees they had, and we saw productivity numbers improve significantly. But now many companies are finding that they can't continue to do more with less. As demand grows, they're finding they have to hire.
  

Labels: kihei homes for sale, Makena Real Estate, Maui Meadows, maui real estate, maui realtor, maui realtors, property in Maui, wailea homes for sale, wailea real estate

Maui Visitor Spending Hits Record! Visitor arrivals to the Valley Isle in January showed that island tourism is nearly reaching pre-recession levels. Maui saw 188,730 visitors in January, up 8.7% from the same month last year. Since records began being kept in 1991, the most visitors to the Valley Isle in January came in 2006, with 193,565 air arrivals, only 2.5% more than we saw last month. For 2011, Maui County took in 2.2 million visitors, a 4.1% increase over 2010. The County's visitor count record was in 2007, at 2.6 million. Maui visitor expenditures in January of $365.5 million was an all-time high, and a 13.2% increase over the same month last year.

American Economy Healing 4th quarter growth for the U.S. economy hit 2.8%, the third straight quarter that growth has accelerated. Unemployment is at its lowest level in three years, at 8.3%. Applications for unemployment aid are near a four-year low. Employers added 243,000 net jobs in January, the most in nine months. Consumer spending grew at a 2% annual rate nation wide in the fourth quarter of 2011. January retail sales rose at a faster pace than 2011 as a whole, at a seasonally adjusted 4.8% annual rate (0.4% for the month). Auto sales and durable goods orders surged 15% last quarter. Builders broke ground in January on a seasonally adjusted annual rate of 699,000 homes, the Commerce Department said. That nearly matches November's three-year high.

Bankruptcy Filings Down for 11th Month The number of people filing for bankruptcy fell again in January, for the 11th straight month. There were 212 bankruptcy cases file in the state last month, down 13.5% from the same month a year ago. Filings fell 25% in both Kauai and Maui counties, and nearly 40% in Hawaii County.

30-year Mortgage at Record Low The average rate on the 30-year fixed mortgage fell to another record low last week, the ninth time that has happened in the last year. Mortgage buyer Freddie Mac said Thursday that the rate on a 30-year loan dropped to 3.87%. The average on the 15-year fixed mortgage fell to 3.14%, also a record low. Records for mortgage rates date back to the 1950's.

Labels: kihei homes for sale, Makena Real Estate, maui real estate, maui realtor, maui realtors, property in Maui, wailea homes, wailea homes for sale, wailea real estate

You might be surprised to see some of these statistics. Please shoot me an e-mail if you would like the pdf of all stats in the County of Maui for 2011.

Wailea Average Sales Price for single family residences up 20%.

Wailea Median Sales Price for single family residences us 32%.

Wailea Dollar Volume of sales (SFRs) for 2011 up 24% to over $134 mm.

Maui county-wide Average Sales Price for single family residences up 5%.

Maui county-wide Median Sales Price for single family residences down 6%.

Maui county-wide Dollar Volume of sales for 2011 up 16% to over $707 mm.

Wailea Average Sales Price for condos up 2%.

Wailea Median Sales Price for condos up 6%.

Wailea Dollar Volume of sales 2011 up 1%.

30-year mortgage drops to 3.89% Part of the reason for the surge in sales in 2011 are the record-low interest rates we are seeing. Freddie Mac announced last week that the average rate on a 30-year fixed mortgage fell to 3.89%. That's below the previous record of 3.91% reached three weeks ago. The average on a 15-year mortgage ticked down to 3.16%, also down from the previous record of 3.21%.

Tourism Up Tourism is the largest single source of private capital in Hawaii. According to the Hawaii Tourism Authority, tourism makes up $1.05 billion of the total state tax revenue in Hawaii. As of October 2011, the percentage of visitor arrivals increased by 2.7 % from 2010. The largest number of visitors came from the US West with 41.2 %. On Maui, the visitor arrivals were up by 3.8 % as of October 2011. More than 104,000 arrived on cruise ships, a 14.5% increase from 2010. South Korean visitors numbers are up due to flights to and from Seoul four times per week. Hawaiian Airlines plans to increase those flights to daily beginning in July.

Hawaii bankruptcy filings declined in 2011 Hawaii bankruptcy cases in 2011 fell for the first time in five years. Data from U.S. Bankruptcy Court show there were 3325 cases filed during the year, down 15.9% from 2010. Nationwide, bankruptcy filings were down 12% from 2010.

Retail Sales: America's retailers enjoyed a record 2011 and their first $400 billion sales months ever. December was the second straight month that sales topped $400 billion.

Employment: The nation added 200,000 jobs in December in a burst of hiring that drove the unemployment rate down two notches to 8.5%, its lowest in almost three years. This was the sixth month in a row that the economy added at least 100,000 jobs, the longest streak since 2006. The economy added 1.6 million jobs for all of 2011, quite an improvement over the 940,000 new jobs in 2010. Economists project the nation will add almost 2 million jobs this year.

Manufacturing: Manufacturing rose 0.9% in December, the biggest gain since December 2010. Factory production has surged 15% above its lows of 2.5 years ago. Over the past year, factory output has risen 3.7%.

Labels: Hawaii real estate, kihei homes for sale, Makena Real Estate, maui real estate, maui realtor, maui realtors, property in Maui, wailea homes for sale, wailea real estate

Hot Pick of the DAY- Palms at Wailea #2101

This one-bedroom home boasts 1022 square feet, and a stone's throw from the famous Keawakapu Beach, named the "#1 Beach in the World" by Conde Nast Travel Magazine. The Palms enjoys concrete construction, beautiful low-density design, and huge lanai. The unit has new appliances, tile floors, and a partial ocean view from the living room and master bedroom. You can't beat the price of $549,000.

Honolulu Approves $760 Million Project

The Honolulu City Council has approved a $760 million project that would nearly double the number of time-share units at the Hilton Hawaiian Village over the next 10 years. This newest expansion project includes more than 500 time-share units, swimming pools and parking.

Hawaii Bankruptcy Filings Drop 26%

Hawaii bankruptcy filings dropped last month for the eighth month in a row, according to data released by U.S. Bankruptcy Court. There were 242 filings in November, down 26% from 327 filings in the same month last year.

Through the first 11 months of the year, Hawaii filings are down 14.6% from the dame period a year ago, supporting the overwhelming evidence that Hawaii is coming back to good times economically.

November Oahu Real Estate Sales Rise

Sales of Oahu houses and condominiums were up last month and sold more quickly compared to last year. The Honolulu Board of Realtors announced there were 251 single-family homes sold last month, up 1.2%, and condo sales increased by 5.4% with 333 units sold.

Maui's Hotel Room Rate State's Highest

Maui led the state with the highest average daily hotel room rate, nearly $210 in October, an 8.1% jump over the same month last year. Occupancy for the month dropped 1% to 66.1%. For the year to date, Maui's occupancy rate increased from 68.7% to 70.7%, the average daily rate was $243.02, up from $222.41 for the first ten months of the year.

More Good News

CONSUMER CONFIDENCE: has surged to its highest level since July, the Conference Board reported. The holiday shopping season has supported that statistic, with sales from November through Saturday up 2.5% from last year. The Consumer Confidence Index climbed 15 points in November to 56, the biggest one-month jump since April 2003. Most economists think the economy will grow at an annual rate of more than 3% from October through December.

JOBS: The number of people applying for unemployment benefits came in at 366,000 last week, down from a peak of 659,000 in March 2009. In good economic times, the figure would be between 280,000 to 350,000. Employers have added 100,000 jobs five months in a row, the longest streak since 2006. And the unemployment rate fell from 9% to 8.6% last month.

INVENTORIES: Businesses are restocking shelves and warehouses, more confident that customers will buy their products. In October, their inventories were up 8.7% from a year earlier. Housing is even showing signs of recovery. Home construction rose more than 9% in November from October, driven by apartment building. And the National Association of Realtors said wednesday that sales of previously occupied homes rose 4% in November.

Labels: kihei homes for sale, Makena Real Estate, maui real estate, maui realtor, maui realtors, property in Maui, vacation property in Maui, wailea homes, wailea homes for sale, wailea real estate

Hot Pick of the DAY- 7155 Makena Road

Two meticulously landscaped acres in one of the most prestigious locations in the world, overlooking the blue Pacific just south of Big Beach in Makena.

A rare Makena Private Resort, highlighting contemporary Asian design Created with privacy in mind, the 7,600 square foot total living area home stretches over two acres in a one-of-a-kind design. Seven buildings all single level, or pods, feature a main living with private home theater, kitchen and dining area, the Master Suite with office and fitness room, two cozy guest suites, a separate caretakers residence and a three car garage. Features include: quartzite stone floors, curved vaulted ceilings lined with cedar planks, hand-finished Venetian plasterwalls and copper roofing. State of the art Lutron audio/visual, security and lighting systems integrated throughout the home. Designed for minimal maintenance. Two acres of tropical landscaping with bananas, papayas, mangoes and more, a lighted tennis court with covered entertainment pavilion, solar heated infinity pool and separate 25 meter lap pool, one spa and outdoor showers. Perfectly peaceful garden settings with incredible ocean vistas of Kaho'olawe, and the sounds of the soothing waves.

Click Here for Customer Listing Synopsis

Hawaii Bonds get S&P's AA Rating

Standard & Poor's has assigned a AA rating to $800 million in Hawaii general obligation bonds. S&P's credit analyst Gabriel Petek said that state revenue has begun to improve, and that tax collections were great in July through September compared to the past two fiscal years. He noted that the tourism industry is also showing signs of growth.

Visitor Rebound

The Hawaii Tourism Authority reported Tuesday that September saw a gain of 4.7% in visitor count over the same month in 2010. For the first nine months, Maui County has welcomed 4.5% more visitors than the same period of 2010.

Molokai is up 14.9%, and Lanai is up 14.1%.

International traffic has recovered better than domestic.

International visitors, which only make up about one-sixth of Maui's count, in September were up 38.3%, and year-to-date were up 17.3%.

Maui vacation condos and hotels were two-thirds full in September, not unusual for one of the dullest months of the year, but hotel operators were able to boost their rack rates by more than $15 a night. So far this year Hawaii's lodging business is doing 12.8% better than last year, and 20.9% better than in 2009, measured in room revenue. For the first nine months of 2011, Maui had the highest average daily rate of $246.52, up 9.3%. Occupancy rates are up about the same amount in each county so far this year. YTD, Maui is up to 71.2% from 68.8% last year.

Hawaii foreclosures drop 66% year over year

According to an article in Pacific Business News (Click here for entire article), there were a total of 427 properties with foreclosure notices in October - including notices of default, public auctions and bank repossessions ­- which was one per every 1,208 housing units, RealtyTrac said. That was a 66% drop from October 2010.

Nationwide, foreclosures were down 31% in October.

Hawaiian Airlines Adds More Aircraft

The airline announced Thursday that it had ordered five more Airbus A330 aircraft to be completed within the next four years. This will bring Hawaiian Airlines' total order of that aircraft to 13. The airline says it has been meeting an increased demand for service to Honolulu from other cities. The A330 will be used for flights between New York City and Honolulu beginning June 5, 2012.

Other Good News

The four week average which economists check because it smoothes out the week-to-week fluctuations in the job market, dropped below 400,000 for the first time in seven months. The number of Americans receiving unemployment benefits fell to 3.6 million, the lowest number since September 20,2008 - the week that Lehman Brothers went bankrupt and started the financial meltdown.

Employers posted more job openings in September than at any other point in the past three years, nearly 3.4 million jobs, the Labor Department said Tuesday. That's the most since August 2008, one month before the financial crises intensified.

The U.S. trade deficit narrowed to $43.1 billion in September, its lowest point of the year, the Commerce Department said. The deficit has narrowed for the last three months.

Consumers are giving the economy a boost- they spent more on trucks electronics and building supplies in October, to boost retail sale for the fifth straight month. Retail sales rose 0.5% from September to October. A rebound in consumer spending is a key reason why the economy grew at an annual rate of 2.5% in the July-September quarter, the best quarterly performance in a year.

Labels: kihei condos, kihei homes for sale, maui, Maui Meadows, maui real estate, maui realtor, maui realtors, property in Maui, wailea homes, wailea homes for sale, wailea real estate