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Kapalua Golf Villas
May 2015
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LOCAL MAUI NEWS
Aloha Kapalua Golf Villa Owners!
Two of the premiere events that take place on Maui, both take place next week. The folks at Cannes have nothing on us! The Maui Film Festival starts next week. Several celebrities are being honored including actresses Laura Dern and Teresa Palmer, and director Louie Psihoyos. But expect an absolute swoon-fest for actors Colin Farrel and Scott Eastwood. The event runs June 3 - 7 and you can get the schedule and ticket information by clicking here: details
 The other big event is the 34th Annual Kapalua Wine & Food Festival. You want to check this out ... there's a reason it's the longest running food and wine event in the USA. The event runs June 11-14. Find out more about the schedule and tickets here. Mick Fleetwood (Fleetwood Mac) has added a business to his Front Street location. The rock n' roll superstar who's also an accomplished photographer, has opened an Art Gallery.
Celebrities love our Islands, and some pretty big transactions have taken place recently:
Mark Zuckerberg James Jannard Chuck Norris C Frederick Taylor Julia Roberts
Mark Zuckerberg (Facebook) just purchased 737 acres for more than $100 million and will only build his own home and a guest house on the property. James Jannard (Oakley) purchased four adjacent beachfront properties for a total of $43.5 million. Chuck Norris just purchased 9.5 acres for near $7 million. C. Frederick Taylor (partner in philanthropic hedge fund TGS who's donated over $2 billion to charity), purchased 5 properties (a mix of vacant land and parcels with homes on them) for about $50 million. Now if only Julia Roberts had sold her Hawaii property in time (her 2 beachfront acres are still on the market for $30 million) it could have made a nice down payment on some of those properties above.
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CURRENT MARKET ANALYSIS
If you had trouble tracking down a realtor on the mainland last week, it's because 8,000 of them descended on Washington, D.C. for legislative meetings and a visit to Capitol Hill. They were there to educate lawmakers on the risks of tinkering with real estate tax incentives, including the mortgage interest deduction and 1031 like-kind exchanges.
Nationally, home sales are expected to pick up to a solid 5.3 million this year, and 5.5 million next. There are still home inventory shortages, and builders seem to be concentrating on the multifamily rental market right now. All-cash sales are slipping - accounting for 24% of sales in March, down from 33% a year ago.
The Hawaii Department of Business, Economic Development & Tourism (DBEDT), is reporting that a slower than expected U.S. economy and a decline in spending by Japanese visitors has led to a stable but slower than anticipated Hawaii economy. The DBEDT has adjusted Hawaii's economic growth to 2.5% for the year, down from 3.1% it projected earlier.
Here on Maui, the median price of a condo rose slightly by 1% last month to $407,500 from $403,500 during the same month last year. The number of sales was down 23% in April to 104 units sold from 136 units sold in April 2014. Sales of single-family homes were fairly flat last month compared to April of last year (85 to 84). The median price of a single-family home was $575,000, a 1% decline over the median price of $583,00 in April 2014.
We can take a broader view of Maui trends by looking at the 1st quarter of this year. There was a lot of up and down in inventory during the last few months, with the winter vacation (high sales season) having the most. Canadian investors are big participants in our market, but the current Canadian dollar exchange rate may motivate Canadian investors to sell, not buy. Looking strictly at 1st quarter figures: the median sales for condo units has increased by 8% to $439,238 compared to $404,375 during the 1st quarter last year. Condo sales declined 9% to 404 sold from 446 the year before. Sales of single-family homes rose 9% to 305 sold from 279 homes sold in the same time period last year. The median price seemed to level out to $586,000 so far this year, compared to $585,000 in the 1st quarter last year.
Let's take a look at Kapalua Golf Villas: Figures taken from the Realtors Association of Maui
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Status
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Unit
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Bd
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Ba
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List $
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Sold $
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Close
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ACTIVE
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22T2
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1
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1.5
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630,000
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*ACTIVE
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26V-1
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1
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1.5
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650,000
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*ACTIVE
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20V-1
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1
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1.5
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660,000
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ACTIVE
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15T7-8
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1
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2
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600,000
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ACTIVE
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26T56
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1
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2
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674,000
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ACTIVE
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14T1-2
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1
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2
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698,000
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*ACTIVE
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24T3-4
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1
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2
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725,000
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*ACTIVE
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16T5-6
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1
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2
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730,000
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*ACTIVE
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27T5-6
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1
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2
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735,000
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ACTIVE
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15T5-6
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1
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2
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775,000
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ACTIVE
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17T7
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1
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2
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798,000
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ACTIVE
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20T5-6
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1
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2
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866,000
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ACTIVE
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15P3-4
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2
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2
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720,000
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ACTIVE
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14P1-2
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2
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2
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830,000
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ACTIVE
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23P1-2
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2
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2
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879,000
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*ACTIVE
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21P7-8
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2
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2
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949,000
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ACTIVE
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16V2
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3
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2
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1,079,000
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ESCROW
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26P5-6
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2
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2
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949,000
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SOLD
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27T7
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1
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1.5
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699,000
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650,000
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04/15/15
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SOLD
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21T1-2
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1
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2
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767,000
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767,000
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3/31/125
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SOLD
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24P3-4
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2
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2
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675,000
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660,000
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01/14/15
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SOLD
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23P3-4
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2
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2
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775,000
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725,000
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03/27/15
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SOLD
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16P3-4
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2
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2
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819,000
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805,000
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05/06/15
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SOLD
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14V3
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2
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2
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829,000
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775,000
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05/05/15
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SOLD
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26P3-4
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2
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2
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850,000
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800,000
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03/02/15
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* price reduced
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* new listing
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An increase in airline seats has provided more opportunities to come to Hawaii. While arrivals from Japan were down 4.7% in the first quarter, bookings already show a stronger second half of the year. Developing markets like China, Korea and Oceania all saw growth in the first quarter. Hawaii doesn't want to be completely dependent on the U.S. West Coast, and is increasing travel with foreign countries. On paper, Hawaii tourism is breaking records, but a closer look shows the spending side has a problem. In each of the last 3 years, Hawaii welcomed more than 8 million visitors who spent more than $14 billion in the state. But when you break their average daily spending into 5 categories, only one doesn't show a decrease.
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Food/Bev
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Entertainment
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Transportation
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Shopping
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Lodging
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-1.7%
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-1.7%
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2.6%
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-9.1%
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-5.5%
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Daytrips have been helping boost visitor numbers for Lanai and Molokai (Maui County). The Four Seasons Resort Lanai The Lodge at Koele has been closed since March and is being used as work-force housing for contractors renovating the Four Seasons Resort Lanai at Manele Bay. Both resorts will be closed to the public starting June 1st, with the Manele Bay property to reopen by the end of this year. Hawaii's National Parks have been quite the draw for visitors. A new report reveals 5.2 million visitors spent $340.5 million last year - supporting 4,202 jobs - $159.4 million in labor income - $270.5 million in value added - and $417.3 million in economic output.
Hawaii hotels filled more rooms at higher rates last week. Statewide occupancy was 76.7% up 2.8% from 2014, while the average room rate rose 3.4% to $220.65. Maui continued to lead all the other islands in daily room rates. Our 74.9% occupancy rate was up 5% year over year, despite a 6.3% increase in the average room rate to $275.02 a night.
Like many of you, I own a condo that I use as a vacation rental. Because I live here and am in the business, people often ask me what's the best way to go for that. For me, there's only 1 answer - Maui Beachfront Rentals. They handle e-v-e-r-y-t-h-i-n-g. They can help you or the guests staying in your unit with Discounted Flight Reservations, Car Rentals, Island Activities, even Grocery Delivery. With MBR I never have to worry about a thing. They guarantee your best rate. But you don't have to take my word for it, read their reviews.
TRAVEL
 Alaska Airlines will be upping their game starting July 1st. They're going to open their Preferred Plus seating to the public, for a fee. Okay, it's only $15 bucks but it gets you 8 inches more legroom, a cocktail, and priority boarding. The only hitch, you knew that was coming, is those seats will be available only after their Mileage Plan MVP members have an opportunity to reserve them. Speaking of frequent flyers, Delta Air Lines booked the highest percentage of Hawaii round-trip tickets for award travel last year ... 18%. United Airlines accounted for 14% of it's seats to Hawaii as award passengers, and Hawaiian Airlines reported only 4% of their seats were award trips.
Inter-Island schedules have been shaken up quite a bit. Island Air announced record losses of more than $21 million dollars. Starting June 1st, the airline will discontinue all service in and out of Kauai. Their service between Maui and Oahu will decrease to 7 daily round-trip flights on weekdays, but increase to 10 round-trip flights on weekends. Makani Kai Air will begin new service between Maui and Molokai June 1st. The route will run between 5 to 7 flights daily in each direction. They're offering a special introductory one-way of $39 for the route if you book before June 30th.
 Japan's biggest airline, All Nippon Airways, has partnered with Hilton Worldwide for a Hawaii focused "Experience More" program beginning June 1st and running through 2017. Menus created by Hilton Hawaiian Village chefs will be served in ANA's lounges at Tokyo's Haneda or Narita airports, they'll be shown a 30 minute Hawaii destination video, and receive a Hawaii mini guidebook. In July, they'll add an additional flight between Narita and Honolulu. Meanwhile Hawaiian Airlines will end its service to Sendai, Japan at the end of September. Beginning October 1st, Hawaiian will have daily service to Tokyo and Osaka in Japan, and three-times-a-week to Sapporo. The largest airline in the Philippines, low-cost carrier Cebu Pacific, is just waiting for final approval to begin its flights from Manila to Honolulu by the end of the year. The only nonstop service from Honolulu to Manila is currently flown by Philippine Airlines.
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MORTGAGES
 Residential mortgage lenders in Hawaii are preparing for new requirements going into effect August 1st. The Consumer Financial Protection Bureau (CFPB) has made some regulatory changes, and I'm going to hand it off to my mortgage expert Dean Rathbun of Avis Mortgage. Dean shared that the CFPB's Truth In Lending Act/Real Estate Settlement Procedures Act Integrated Disclosures (try saying that fast 10 times), are designed to simplify the home-loan process and make it more user-friendly for borrowers. One is the loan estimate, a document that combines the good faith estimate and initial truth in lending information into one disclosure, which will be given at loan application. The other is the closing disclosure, a document combining the current Housing and Urban Development settlement statement, final truth in lending and itemization of amount financed into one disclosure.
Dean also reports that fixed-rate mortgages moved slightly lower last week, a welcome reversal following three consecutive weeks of increases. Dean also reminds us that the Federal Housing Finance Agency is extending the Home Affordable Mortgage Program (HARP) and the Home Affordable Refinance Program (HAMP) through the end of 2016. Under HARP< home owners who have loans backed by Fannie Mae or Freddie Mac can refinance at lower interest rates. HAMP provides incentives for lenders to alter mortgage terms of borrowers in order to make the loans more affordable.
MAUI MOVES CLOSER TO FORMING OWN UTILITY TO GET TO 100% CLEAN ENERGY
Maui is so serious about breaking away from the Hawaiian Electric Cos., that they're awarding a firm $30k on June 25th to analyze the best way to do it - municipal utility or nonprofit cooperative. Maui wants to transform the island's electric grids into 100% renewable energy smart grids and microgrids. The analysis will be due back October 30th. Meanwhile Molokai (Maui County) may become the 1st Hawaiian Island to get 100% of its energy from renewable sources. The Princeton Energy Group's plan involves a major solar energy farm paired with a battery storage system. The plan also offers a portion of the project as community solar for those who do not have rooftop systems. Phase 1 is projected to save residents about $300 a year per meter.
The University of Hawaii has become the 1st College to rid itself of all investments in companies involved in fossil fuel productions. Other colleges, like Stanford, have divested from direct investment in coal companies, but not petroleum or natural gas companies. UH is unique because it has committed to divesting from fossil fuels completely.
Something I never heard of before, is apparently the next big thing that's already coming down the pike on the mainland, especially for drought-stricken locations like California. A new water filtering technology that recycles a home's water may become even bigger than solar panels. The new technology can live under two manhole-like covers on the side of a home and pull in soapy water such as from the shower, laundry, dishwasher, and sink water (not toilet water). It then "cleans" that water into "Gray water". That water is then used for irrigation and for flushing toilets (not drinking or washing). Homebuilder KB Homes has already started including it as "standard" in their new homes in San Diego. Experts are predicting in 5 years time, every new home will have a water recycler in it.
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MAUI HAPPENINGS
May 30: Joey Fala Free Organ Concert in Kula info June 3-7: Maui Film Festival detailsJune 11-14: 34th Annual Kapalua Wine & Food Festival specifics
7/10-8/2: The Adams Family
Maui Arts & Cultural Center Tickets
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
6/3-10: Parts of Maui Film Festival
6/06: John Fogerty in concert
6/11: Dave Mason's Traffic Jam concert
6/13: Tritonal - EDM dance music
6/14-15: Diana Ross in concert
6/18: AARP Movie for grownups: "Still Alice" starring Julianne Moore
6/19: John Anderson rock concert
6/20: Maui Wearable Art Show fashion
6/23: Conversations in the Garden Takum Itoh Trio
6/26: Zenshin Daiko - 16th Annual Taiko Festival
6/27: Hula show
6/28: Ki Ho'alu Festival slack key guitar
Everyone knows 2 things about real estate right now: home values are rising and Mortgage rates WILL be going up. If you're even thinking about selling your property, or adding to your real estate portfolio, this would be the time to take advantage of both. I'd be glad to give you a free no-obligation estimate of the value of your current property or point you in the direction of some great buys. 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 Kapalua Golf Villa Specialist since 1987 and have closed over $1.5 billion in Maui real estate sales.
EXCEEDING YOUR EXPECTATIONS
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If listed with another Broker, this is not intended to disturb that relationship
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Local Lender
Low Rates
Fixed & Adjustable Rates
Condo-tel Lender for over 18 Years
DEAN RATHBUN
Toll Free (888) 455-AVIS (2847)
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Increased Income Reduced Expenses
Never Pay For Guest Damages
Guest Travel Insurance
Eliminates Guest Refunds
MAUI BEACHFRONT RENTALS
Toll Free (888) 661-7200
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