The Mahana     
April 2015
LOCAL MAUI NEWS

 

Aloha Fellow Mahana Owners! 

 

Looks like Google is going to launch their new mobile wireless network in Hawaii!  While the details are being kept hush hush, Google's new MVNO (mobile virtual network operator) will seamlessly blend Wi-Fi and Cellular networks T-Mobile and Sprint together in a move that could really shake up the U.S. cell phone industry.  Initially the new wireless service will only work with the Nexus 6 Android smartphone developed by Google and Motorola.   And speaking of cell phones ... there's a new free app in Hawaii that will make standing in line for take-out food obsolete. Dodecki lets you view menus, customize orders, pay by mobile, and get discounts to boot. Currently there about 100 menus from restaurants on Maui, Oahu, and the Big Island. The free app is available on Apple iPhones and the Android release is on its way.   And while I can't vouch for any cell service - I do know that both the Polipoli Springs State Recreation Area and Kula Forest Reserve are open and ready for business again.   Both areas, on the slopes of Haleakala, had been closed since August of last year after being damaged by Tropical Storm Iselle.  Happy trails ...                     
    
The biennial Transpacific Yacht Race, (Transpac) is coming. In 1906 Hawaii's King Kalakaua initiated the race to Hawaii as a way to build the Islands' ties with the mainland U.S.  The 2,225-mile race from Long Beach, California to Hawaii begins July 13th.  "Aloha Gear" from Reyn Spooner will be worn by the crews, and is also available to the public.  Click here if you want to check out the Aloha Gear, Or here if you want to find out about the race.  

Okay, before you get all "Don't talk to me about income taxes" let me share this: There is a
benefit for filing in Hawaii. All right, I haven't lost my mind.  A new study shows that some states get a better return for their money than others.  According to WalletHub,
Hawaii had the 17th best taxpayer return on investment - meaning residents got better services for their tax dollar!
CURRENT MARKET ANALYSIS

Last year, the spring selling season failed to meet market expectations, but many housing analysts say that 2015 will be different and that the national market may have finally reached a long-awaited "sustainable recovery."  There's a new report out from the Urban Land Institute Center for Capital Markets and Real Estate, which is based on a survey of the industry's top economists and analysts.  The consensus is that real estate is likely to ride a 3-year wave. They predict existing home prices will rise 5% this year, another 4% in 2016, and by 4% in 2017.  And guess what the New Hot Housing Market is .... Vacation Homes!  According to Lawrence Yun, the National Association of Realtor's chief economist, "Affluent households have greatly benefited from strong growth in the stock market in recent years, and the steady rise in home prices."  He added that baby boomers are moving closer to retirement and buying second homes to convert in their primary home in a few years.

Another report released this month from Data@Work, showed that the State of Hawaii's Residential Resort Market saw the average price rise 6.6% to $1.23 million dollars last year. Maui had the highest sales in 2014 at 451, with an average price of $1.56 million.    
    
Here on Maui, the median price of a condo rose more than 5% last month to $442,500 from $420,000 during the same month last year. The number of sales was down slightly in March to 122 units sold from 127 units sold in March 2014. Sales of single-family homes soared 20% last month compared to March of last year.  The median price of a single-family home was $627,500, a 6% jump over the median price in March 2014.
                            
Let's take a look at The Mahana:  Figures taken from the Realtors Association of Maui

STATUS

UNIT

BD

BA

LIST $

SOLD $

CLOSE

Active

M604

1

1

875,000

Active

606

1

1

895,000

Active

418

1

1

925,000

*Active

118

1

1

975,000

Active

715

1

2

879,950

*Active

505

1

2

969,500

Active

219

2

2

1,269,000

*Escrow

L811

2

2

1,200,000

Sold

1215

1

2

850,000

849,000

02/20/15

Sold

611

2

2

1,295,000

1,250,000

02/27/15

Sold

909

2

2

1,375,000

1,225,000

03/24/15

* price reduced

*new listing

*new escrow

       
TOURISM

Hawaii hotels filled more rooms at higher rates last week. Statewide occupancy was 78.2% up 2.9% from 2014, while the average room rate rose 7.6% to $251.07.   Maui continued to lead all the other islands both in occupancy and room rate.  Its 82.3% occupancy rate was up 2.2% year over year, despite a 16.1% leap in the average room rate to $343.92 a night.
            
Vacation rental properties in Kaanapali and Wailea were ranked among the top 10 in the nation according to traveler reviews compiled by TripAdvisor for 2014.  The publication noted that both Maui locations earned an average 95% in the review and attributed the positive response to the locations' luxurious beach front and accommodations.
          
                      
TRAVEL

Virgin America  is launching flights from San Francisco to Hawaii in November, and is already looking to expand service to the Island with flights from Los Angeles. Daily nonstop flights from San Francisco to Honolulu will start on November 2nd.  Daily nonstop flights to Maui will begin December 3rd.  They'll be using those new Sharklet wing A320's pictured at left.  "So what?" you ask. Well, those funny looking wing tips mean close to an extra 2 inches WIDER seats ... and the distance between you and the guy in front of you will also increase by 2 inches.  These new flights to Hawaii will generate an estimated $138.6 million in annual visitor spending and $14.8 million in additional tax revenue for the state.
             
AirAsia X, part of Malaysia-based  AirAsia, plans to begin weekly flights to Hawaii in November.  The low-cost airlines will offer the first direct flights between Malaysia and Hawaii.  Four weekly flights start November 1st.

The Kahului Maui Airport
is going to be modernized.  The $327 million project calls for a new multilevel 2 million-square-foot consolidated car rental facility with a customer service building, a ready/return rental car facility, turnaround area for refueling, and a short-term and long-term parking facility with 4,900 stalls.  There will also be a People-Mover system between the terminal and the new complex.  And prayers to the airport traffic gods have been heard ... there will be a new access road to the complex linking Hana Highway with the existing Airport Loop Road.
MORTGAGES

The minutes from the Federal Reserve's mid-March policy meeting have been released, and Yes interest rates are going up.  This is the point where I hand it off to my mortgage expert Dean Rathbun of Avis Mortgage. Dean shared that June will be the likely start for Fed officials to start hiking rates. The Fed also indicated that once they did start raising rates, they would do so gradually.  If you're a buyer or a seller, you should try to lock in the low rate now.
              
Dean also reminds us that starting next Monday, April 27th, the federal government will be imposing tougher credit standards for reverse mortgages.  In the aftermath of the recession, many borrowers defaulted on their reverse mortgages, failing to pay the required property taxes and insurance.  So now lenders will scrutinize borrowers' income and financial assets, and applicants will have to demonstrate upfront that they can meet the loan obligations: credit reports, proof that real estate taxes, homeowner association fees, and other property charges have been paid for at least the last 24 months.  Some applicants may even be required to create a "life expectancy set-aside" where they have an account with part of their loan proceeds.

"Boomerang Buyers", some of the more than 5 million American families who lost their homes to foreclosure between 2007 through the end of last year, are starting to re-emerge. But Dean says not all lenders are welcoming them back.  Many bank giants like Bank of America Corp. and J.P. Morgan Chase & Co. are pulling back.  On the other hand, smaller lenders are taking advantage of big banks' reticence, and view the boomerang buyers as a big opportunity to ramp up business. 

                                                        
 
                     
Work has started on a $250 million undersea cable system linking Southeast Asia, Hawaii and California.  Those 9,000 miles of fiber will increase Internet speeds initially to 20 terabits per second.  And for those of you like me, who wouldn't know a terabit if it bit me: Twenty terabits per second is three million times faster than a typical cable modem.

Did you know that Hawaii is the largest consumer of fossil fuels per capita in the U.S.? But because of our access to renewable energy the Blue Planet Foundation thinks that legislation should require the state to generate 100% of its energy from renewable sources by 2040. Currently Hawaii is the national leader for rooftop solar, having more than 20 times the national average in the percentage of customers.  A major report tackling Hawaii's transportation energy will come out in June.  The transportation sector accounts for more than 60% of the energy consumed in Hawaii.  Air transportation nearly 40% - tracks, buses and cars 20%.

The state of Hawaii is going to convert all of its diesel fuel equipment and vehicles to a fuel blend of 20% biodiesel and 80% petroleum diesel.  Maui's Pacific Biodiesel is a cleaner-burning, renewable alternative fuel produced from recycled waste vegetable oil.  Phase One, of a major plan to help Hawaii's 255 public schools reduce energy consumption and costs has been approved.  The "Ka Hei" project aims to reduce the $62 million in annual costs the state Department of Education (DOE) spends on Electricity, gas, water and sewage fees.   The DOE's goal is achieving 90% clean energy by 2040.
May 11th
                          MAUI HAPPENINGS

April 24 - 26: 7th Annual Maui Steel Guitar Festival Info
April 25: 22nd Annual Haiku Ho'olaule'a & Flower Festival Details
May 2,4,6,8: Classical Music Festival Tickets
May 2-3, 24-25: Lahaina Art Fair Banyan Tree Park Info
May 8: Kickoff for 2015 Maui Matsuri Schedule
May 9: 37th Annual Visitors Charity Walk 5k Details
May 9: Maui Portuguese Festa Where
May 15-17: StartUp Weekend Maui Schedule
May 15: Kikaida  Reboot Movie Premier Info
May 16: 15th Annual Maui Matsuri Festival Details
May 22: Benefit for Maui's Forest Birds:  Maui Breweing Company - Kahana

Maui On Stage tickets
Now-5/10: Neil Simon's Brighton Beach memories
7/10-8/2:  The Adams Family

Maui Arts & Cultural Center  Tickets 
4/24-25: Shoyu on Rice     theatre
4/26: "Pa'a Ke Aupuni"    animated film of Hawaii history
4/30: Sierra Leone's Refugee All Stars     world music concert
5/1: Brothers Cazimero Lei Day Concert  Hawaiian music
5/2-3: MAPA Spring Extravaganza   dance
5/8: Chaka Khan  concert
5/9-10: Maui Choral Arts "A Night At The Opera"
5/16: 7th Annual Maui Brewers Festival
5/24: Heritage Film: Moving Home   Korean dance
5/28: Kawehi   concert
5/30: Trevor Hall   concert
5/30: Brian Regan  comedy
5/31: Heritage Film:  Pa'a Ke Aupuni  animated Hawaiian history

If you're thinking of buying more property or selling your unit ... home values are rising and Mortgage rates WILL be going up.  You might want to take advantage of the record low rates now.   Remember I'm a fellow Mahana owner, and I'm available to you 7 days a week. I am the Broker/Owner of Berkshire Hathaway Maui Properties - Hawaii's only Berkshire Hathaway brokerage.  I've been a Mahana Specialist since 1987 and have closed over $1.5 billion in Maui real estate sales. 

EXCEEDING YOUR EXPECTATIONS
                                                                                                                                                

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