The Mahana     
December  2014 
LOCAL MAUI NEWS

 

Aloha Fellow Mahana Owners!
 
Happy Holidays and welcome to my inaugural monthly update as the only Berkshire Hathaway Real Estate Brokerage in Hawaii.  Pictured to the right is Warren Buffett, the man at the helm of Berkshire Hathaway. Seeing him strumming on the ukulele I can imagine Bing Crosby singing Mele Kalikimaka. And if I've just dated the heck out of myself, forget what I said and figure you'd be smiling too if you'd just been named the 2nd-richest man in the world (right behind Microsoft founder Bill Gates).
       
There are a couple of new things you might want to try out along the Kaanapali Resort walkway. If you're in the mood for a great dog - think Chicago dog or Portuguese sausage Hawaiian dog - look no further than Hank's Haute Dogs beachside at the Sheraton Maui. And if you're looking for a way to work off that hot dog ... take a stroll over to the Westin Kaanapali Ocean Resort Villas and strap on some ice skates!  That wasn't a typo ... this is the 3rd year in a row they've erected a beachside ice skating rink. The rink will be open daily until Jan 3rd from 4pm - 9pm.  If for nothing else, it'd be great for bragging rights and a photo to post of you ice skating under palm trees on the beach in Maui!
                     
Hawaii has submitted a formal proposal to host President Barack Obama's presidential library.  It has the potential to be one of the most-visited presidential institutions in the country because of Hawaii's visitor market.  Predictions include generating $2 billion in economic activity in the first 10 years of operations.   Hawaii has topped the list of "healthiest states" for the 2nd year in a row.  The 2014 America's Health Rankings cited Hawaii's low obesity rate, low rate of preventable hospitalizations, and low rate of cancer deaths.   And we're not only healthy, according to WalletHub ... Hawaii also has the most frugal consumers!  There is a down-side to that ... we tied Nevada for the highest percentage of population that actually spent more than it made ... at 23%.
CURRENT MARKET ANALYSIS

Surfing Santa
While home prices have been on the rebound, they still haven't caught up to the peak reached in the 3rd quarter of 2005.  At that time the national median home price reached $227,633.  Flash forward nine years later to the 3rd quarter of this year and the national median home price is 4.9% below the peak at $216,367.  The National Association of REALTORS posted something interesting ... going back and taking the 10-year October average and seeing how our current market conditions stacked up this October.  October 2014 fared better than the 10 year average in number of home sales and home prices.  Not so much for Inventory.  Home buyers had more options in the past.
              
What we do know is that high-end homes are getting easier to sell.  In fact the luxury market has been posting some of the largest increases in home sales.  Homes priced $1 million and above have surged 16.2% year-over-year in October.  Overall home sales only rose 4.7% during that same time.  We also know that 2015 could be a game changer for first-time buyers.  I'll go into that further in the mortgage section.
                      
Hawaiian Hula Ornament Here on Maui, the median price of a single family home rose 14.1% in November, with the median price being $587,500 compared to $515,000 in November 2013.  Sales were relatively flat at 75 homes sold last month compared to 74 homes sold in November a year earlier.   Meanwhile the median price of a condominium last month was $366,250, a 4.6% increase from $350,000 in November 2013.  The picture was not quite as rosy for the number of condominiums sold.  Last month 68 units were sold, down 29.2% from the 96 units sold in November 2013. 
                            
Let's take a look at The Mahana:  Figures taken from the Realtors Association of Maui

STATUS

UNIT

BD

BA

LIST $

LT

SOLD $

CLOSE

*Active

1012

0

1

735,000

Active

718

1

1

885,000

Active

606

1

1

895,000

Active

M604

1

1

900,000

Active

118

1

1

1,175,000

Active

1008

1

1

1,195,000

*Active

1215

1

2

850,000

Active

L811

2

2

1,200,000

*Active

219

2

2

1,309,000

Active

909

2

2

1,375,000

Sold

1013

0

1

395,000

LH

363,500

07/15/14

Sold

1012

0

1

524,888

500,000

09/29/14

Sold

1107

1

1

710,000

705,000

02/04/14

Sold

1206

1

1

785,000

735,000

01/03/14

Sold

L1014

1

1

787,000

730,000

02/26/14

Sold

517

1

1

825,000

790,000

06/20/14

Sold

1104

1

1

870,000

870,000

05/15/14

Sold

804

1

1

875,000

840,000

01/02/14

Sold

1015

1

2

895,000

875,000

05/07/14

Sold

611

2

2

1,295,000

999,999

06/03/14

Sold

109

2

2

1,325,000

1,200,000

05/06/14

 *new listing 

* price reduced

              
TOURISM

Snowmans family at sea beach in santa hats. New years and christmas holiday in hot countries concept.
According to the Hawaii Tourism Authority, visitor arrivals for the year are up 0.7% compared to the same time period in 2013, and total expenditures gained 2.2% to $12.2 billion.  In tax revenue alone, Hawaii's visitor industry has generated $1.3 billion.  We've seen quite a jump in arrivals from the U.S. West coast - 9.1% increase over last year. East Coast arrivals also increased by 7.7%.  Some markets have dropped however, with arrivals from Japan declining 2.7% and Canada dipping 1.4%.  It's worth looking even closer at the Japan numbers.  While the decline in Japan's gross domestic product has pushed the country into a recession, that's not the only thing affecting Hawaii's tourism industry.  The value of the yen is also weakening.  While we expect a 2.7% rise in total visitor spending this year, it will be due to increased spending from visitors from other markets like China and Korea, but less spending from Japan visitors.
    
Hawaii has reached across the pond to our British friends.  In fact we just finished an ad campaign there. Imagine bundled up Brits walking out in foggy London town to the sight of taxis driving by with pictures of warm tropical Hawaiian beaches beckoning them to come.   No matter where they've come from, Maui's visitors brought our hotel occupancy up by 4.7% last week to 71.7%.  Maui also had the highest average room rate in the state at $240.20, a 1.9% gain. Personally, I own condominiums that I use as vacation rentals here on Maui.  Let me tell you something, I don't ever worry about their bookings or if I'm going to get a good return. That's because I've entrusted my vacation rentals to Maui Beachfront Rentals. I'd tried other companies before ... even tried doing it myself for a while (now there was a study  in stress and hassle that I'm not anxious to revisit).  With MBR my guests are treated like family and that results in repeat bookings.  Give yourself a holiday gift and check them out.  They guarantee your best rate.  See if you can get more bang for your buck with them.

                      
TRAVEL

Hawaiian Santa Paddleboarding Good news for West Coast visitors to our islands.  Hawaiian Airlines will bring back seasonal flights to Kauai and the Big Island from Los Angeles and Oakland, California.  Look for that to start on May 20th. Then beginning June 11th, Hawaiian will add a direct flight from Los Angeles to Maui for 14 weeks.  Picture yourself up to your eyeballs in snow in Minneapolis.  Now picture the beaches of Hawaii getting closer to you.  Delta Air Lines will introduce the only nonstop service to Hawaii from Minneapolis in the heart of winter next year.    Allegiant Air has scaled back their very ambitious flight schedules since 2012.  Most recently ending their flights between Phoenix, Arizona and Hawaii.  The carrier now only has routes from Honolulu to Las Vegas and Honolulu to Los Angeles.
                        
Philippines-based, low-cost carrier Cebu Pacific plans to start a 3 times a week Manila to Honolulu flight in the middle of next year.  They will be the only direct carrier from the Philippine capital to Hawaii since Hawaiian Airlines stopped in 2013.
                     
Now if you're still dropping hints for what you'd like to be gifted this holiday season ... might as well go big.  The Four Seasons hotels are offering Round the World Tours to their various hotels (including Hawaii) on their own branded Four Seasons Private Jets. Prices run around $119,000 per person based on double occupancy.  Going alone?  You'd have to fork over $130,000.  Oh go on ... live a little ... it won't cost you anything to sneak a peak.   A little too pricey?  Not to worry, there's another player in town who'll include Hawaii on their around-the-world journey.  TCS World Travel is offering their private jet tours starting at a mere $80,000 - and yes - that's also based on double occupancy.
MORTGAGES

Hawaiian Sand Snowman It's that time of year when even Fannie & Freddie are feeling benevolent. Fannie Mae and Freddie Mac are suspending evictions on foreclosed single-family properties all across the country starting today through Jan 2, 2015.  And that's not the only holiday relief coming our way.  For all the details, I turn the floor over to my mortgage guru Dean Rathbun of Avis Mortgage.  Dean shares that the Federal Housing Finance Agency has announced a new policy that will permit some foreclosed home owners to purchase back the homes they once lost ... at fair market value.  Prior to this new policy that will likely lower the principal on the loans, if a former home owner wanted to buy their home back they'd have to pay the entire debt they owed on the mortgage, even if it was much higher than the home's current value. 
               
The good news is that more home owners are keeping up with their mortgage payments. Nationwide the mortgage loan delinquency rate (the number of borrowers 60 or more days past due on their mortgage) is projected to drop to 3.12% by the end of this year.  Dean said that some see it going down even further next year.  He cited the recent TransUnion research that predicts the delinquency rate will reach 2.51% next year.  That will be the lowest level since reaching 2.61% in the 3rd quarter of 2007, prior to the Great Recession.
                    
Earlier, in my current market analysis, I mentioned a possible game changer coming for first-time buyers.  Dean provided the details: As of last weekend Mortgage giant Fannie Mae launched a program with only 3% down-payment as long as at least one co-borrower is a first-time buyers.  You'll still have to meet standard eligibility requirements and have private mortgage insurance.    Then on March 23, 2015 Freddie Mac will launch Home Possible Advantage, a conventional mortgage with a 3% down payment geared to low and moderate-income borrowers.  To qualify, first-time buyers will have to participate in a borrower education program.

                                                     eco island
Don't be surprised to see a new monthly $1.29 green infrastructure fee on your Maui Electric bill this month.  The new fee from Hawaiian Electric Co. will help finance the state's $150 million Green Energy Market Securitization program, which aims to expand the installation of solar energy systems and other clean energy devices for Hawaii customers.
                     
Hawaiian Christmas Palm
Figures just released by the U.S. Energy Information Administration, shows Hawaii ranks second in the nation (behind California) in the number of electric vehicles registered in the state!   Clearly there are a lot more people in California than in Hawaii ... but when you break it down ... the numbers are pretty darn impressive.  In Hawaii, 4.2 out of every 1,000 registered light cars and trucks are electric vehicles.  In California, the numbers are 5.5 out of every 1,000.    Volta Industries recently added 2 new free EV charging stations on Maui bringing the number on the Valley Isle to 4, and 28 total in Hawaii.  
                           
Maui-based Pacific Biodiesel Technologies has just landed a two-year contract with Hawaiian Electric Co. It calls for a minimum of two million and up to three million gallons per year of biofuels processed from waste cooking oil and other local feedstocks, to be used for electric generation.
Ice Skating-Kaanapali Beach
                                MAUI HAPPENINGS

Holiday Events
Now - Jan 3: Kaanapali Westin Ice Skating 4 - 9pm daily
Now - Jan 2: Lahaina Banyan Tree Christmas Lights
Whalers Village Holiday Events Schedule
      Strolling Carolers, Mele Kalikimaka Show, Holiday Jazz
The Outlets of Maui on Front Street & Papalaua
      Santa Clause: 12/19 6-7:30pm, 12/20 2:30-4:30 & 6-7:30pm
Lahaina Cannery Mall
      Santa Clause: Fri 5-8:30pm, Sat 10-2 & 4-8:30pm, Sun 10-2 & 4-7pm, Christmas Eve 10am-3pm
Winter Wonderland: 12/21   6pm   FREE
      Movie "Frozen", sleigh rides, pictures with Santa, Candlelight Service & Food
      The Awakening Church - Kahului

New Years Eve
Alii Nui Sail: From Maalaea to Wailea Fireworks Dinner/Cocktails Information
Cocktail Cruise: from Lahaina heavy appetizers/cocktails Details
Various Hotels & Resort events

Maui Arts & Cultural Center  Tickets 
12/19: Sara Evans   country 
12/20: Lim Family Christmas Concert
01/01: Bill Maher   comedy
01/04: Atmosphere   hip hop
01/10: Harry Manx   world music
01/15: Ebb & Flow Ensemble   classical
1/19-20: Shanghai Circus
01/19: Terry Tempest Williams   conservationist talk
01/22:  An Evening with Yo-Yo Ma
01/23: Judy Collins in concert
01/23: Rani Arbo & Daisy Mahem   folk music
01/24: Nick Swardson   comedy
01/25: Maui Pops   Rogers & Hammerstein
01/29: Carmen de Lavallade   her story of dance
01/30: Marc Broussard   soulful pop
01/30: Kapono, Cruz, and Noland   hawaiian

1/3: Taste of Sardinia Sunset Cruise Information

1/8-12: Hyundai Tournament of Champions  PGA  Plantation Course Details

1/18: Maui Oceanfront Marathon Wailea to Lahaina Schedule
 
                      

Young blond hair three year old boy lighting the candles in the Jewish tradition to celebrate Hanukkah
Well, that'll do it for my monthly updates for 2014.  Mele Kalikimaka - Happy Holidays.   And to all my Jewish friends a very Happy Hanukkah, which began last night at sunset.   Look for my Year End Wrap up next month when I'll be wishing you a Hau'oli Makahiki Hou as we kick off the New Year.  In the meantime, remember I'm available to you 7 days a week.  And even though this is my inaugural update as the Broker/Owner of Berkshire Hathaway Maui Properties, I've been a Mahana Specialist since 1987 and have closed over $1.5 billion in Maui real estate sales. 

EXCEEDING YOUR EXPECTATIONS

Then the Grinch thought of something he hadn 't before.
What if Christmas, he thought, doesn't come from a store?
What if Christmas, perhaps, means a little bit more.
                                                                                                                                                

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