Kaanapali Alii Update
July 2015 

LOCAL MAUI NEWS
Solar Impulse 2
Aloha Kaanapali Alii Owners!
     
Hawaii will be home to the Solar Impulse 2 until late spring 2016 while it undergoes repairs before continuing around-the-world.  The totally solar powered aircraft  has turned into a classroom of sorts for educational opportunities such as lectures and seminars. *   The hard work of our University of Hawaii community college students will be on board the NASA launch next month. As part of Project Inua, the students designed and built a scientific payload to measure ultraviolet radiation on a rocket to be shot 100 miles into space to collect data.  *  Back on terra firma ... ever hear of FootGolf?  (Yes, it's a thing). Kaanapali Golf Courses are the first on Maui to offer FootGolf. You can bring your own soccer ball/or rent one and play 9 or 18 holes any day after 3:30pm. There are pars for every hole, and the 21" cup is cut into the rough.  If this sounds like your cup of tee, click here to check it out.
   
Forty-one year old Tedeschi Vineyards located at Ulupalakua Ranch in Upcountry Maui, has decided to rebrand as MauiWine.  Don't worry, their famous pineapple wine will still be sourced from Maui Gold pineapples.  * And speaking of wine ... 33 Hawaii restaurants have been named as being among the best in the world according to Wine Spectator Magazine's annual restaurant wine list awards.  If you want to take your palate for a tour: The Banyan Tree at the Ritz-Carlton Kapalua, Capische at the Hotel Wailea, Castaway Cafe at Maui Kaanapali Villa Resort, Fleetwood's on Front St. in Lahaina, Gerard's at the Plantation Inn Lahaina, Haliimaile General Store Makawao, Honu Seafood & Pizza Lahaina, Kaana Kitchen in the Andaz Maui Wailea, Ko at the Fairmont Kea Lani Wailea, Lahaina Grill, Longhi's Lahaina, Mala Ocean Tavern Lahaina, Merriman's Kapalua, Morimoto Maui at the Andaz Maui Wailea, Pacific'o Lahaina, and Sarento's on the Beach Kihei.  Two Maui restaurants won the top "Best of Excellence Award" - Longhi's Wailea and Nick's Fishmarket Wailea.  Whew ... got a little woozy just typing all that.
       CURRENT MARKET ANALYSIS
On the national front, sales of existing homes rose to their highest level since 2007 last month, and the median sales price hit an all-time high - $236,400 - breaking the previous high set in July 2006.  As home prices rise, home owners equity is growing at the fastest quarterly rate since 2013.  According to the National Association of Realtors, home equity levels may likely return to 2005 levels by the end of this year or mid-2016.  *  Interesting little tidbit from RealtyTrac: making monthly house payments (including mortgage, insurance, and property taxes) on a three-bedroom property is more affordable than paying fair market rent on a three-bedroom property in 66% of U.S. markets.  *  U.S. housing markets are the most affordable in the world - according to a recent study of more than 300 metro housing markets.  Research group Demographia, stated that our housing markets were more affordable than Canada, the United Kingdom, Ireland, Australia, New Zealand, Singapore, Japan, and China.  Hong Kong, on the other hand, was the priciest and at a record high on the survey.

In Hawaii, the Japanese lead the way when it comes to foreign buyers of residential real estate so far this year.  Canadians came in at #2, followed by Hong Kong, China, and Singapore.  Here on Maui, buyers from Canada, Singapore, and Japan were the top foreign purchasers.  Let's look at Maui figures comparing year-over-year.  Last month 103 single family residences were sold ... an increase from 93 homes in June 2014.  The median price increased almost 23% to $650,000 compared to $530,000 in June 2014.   Sales of condos also increased with 99 sales last month compared to 94 last year.   Median price dropped year-over-year to $355,000 last month compared to $444,500 in June 2014. (Last year's June condo numbers were skewed by one bulk condominium sale on the Island of Lanai - considered part of Maui County - in excess of $2.8 million.)

Let's take a look at Kaanapali Alii:  figures from the Realtors Assoc. of Maui

Status

Unit

Bd

Ba

List $

 Sold $

  Close

 Active

1-104

1

1

1,295,000

* Active

2-204

1

2

1,100,000

Active

1-401

1

2

1,500,000

Active

4-903

1

2

1,650,000

Active

1-502

1

2

1,695,000

Active

4-1103

1

2

1,750,000

Active

4-902

1

2

2,295,000

Active

1-903

2

2

3,250,000

Active

3-304

2

2

3,425,000

Active

1-205

2

2

3,500,000

Active

263

2

2.5

3,700,000

Sold

4-501

1

2

1,550,000

1,375,000

02/26/15

Sold

1-801

1

2

1,635,000

1,525,000

04/30/15

Sold

1-1002

1

2

1,750,000

1,450,000

06/05/15

Sold

3-601

1

2

2,095,000

1,995,000

03/23/15

Sold

3112

1

2

2,100,000

1,925,000

04/10/15

Sold

3-801

1

2

2,250,000

2,050,000

03/13/15

Sold

3-803

2

2

2,150,000

2,150,000

07/21/15

* price reduced

                   
TOURISM and TRAVEL
pineapple-header.gif
Virgin America will compete in the Hawaii market, but will be a small player.  Flights will originate in San Francisco and fly to Honolulu in November ... Maui in December. Hawaiian Airlines will add more flights from Maui to Los Angeles for the holiday season. Currently they have a daily nonstop service.  But from Dec. 17 to Jan. 3, Hawaiian will add a 4 times a week flight which will add 20,000 nonstop scheduled air seats.  And even though you can't catch a spot on these next flights, your stuff can.  Hawaiian is going to expand their interisland shipping service and coordinate their schedule to connect with its Mainland and international networks, providing end-to-end cargo service for its customers.

Below is a graph from the Hawaiian Tourism Authority that shows year-over-year growth in in scheduled airline seats through the 3rd quarter of the year. They are forecasting 4.9% increase in the 3rd quarter, and a 6.6% increase for the first three quarters of the year.  


    
Hotels across Hawaii saw higher occupancy and higher average daily room rates last week. Statewide occupancy increased to 82.9% and the average room rates rose to $255.97.  Maui led the state with average room rates at $320.36 a night.  Occupancy jumped to 76.2%.
            
By now you know I have my vacation rentals in the program at Maui Beachfront Rentals. Why? Because with them I never have to wonder if I'm getting the best bang for my buck. They guarantee your best rate.  Add in their complimentary concierge services - from reserving your tee times, to arranging a baby sitter so you can enjoy the dinner reservations they made for you with peace of mind. Seriously, your guests will love it and so will you! Check 'em out: MBR.
     MORTGAGES
housing market street sign
The All-Cash buyers have really decreased in number. In fact according to a new report by RealtyTrac, they're numbers dropped to the lowest level since November 2009.  That means housing markets are transitioning from an "investor-driven, cash-is-king market to one more dependent on traditional buyers."  *  Looks like loan demand is going to boom right into 2016 ... which is my cue to bring in my mortgage guru Dean Rathbun of Avis Mortgage
.
 

Dean shares that the Mortgage Bankers Association has significantly revised its mortgage originations for residential purchases forecast ... now predicting applications will increase by an additional $71 billion in 2015 and $94 billion in 2016.  Refinance applications are expected to total $551 billion this year compared to $484 billion in 2014. The report also predicted that mortgage rates are expected to average 4.5% by the end of the year.  *  Dean imparted more positive news:  Delinquency rates on home-equity loans have dropped to the lowest levels since 2008.  Delinquency rates on home-equity lines of credit also dropped in the fourth quarter to 1.42% - the lowest in nearly 7 years.

GREEN
Tesla Battery
The future of Hawaii's renewable energy scene will depend heavily on new technologies including those involving energy storage.  SolarCity, which has become one of Hawaii's top solar energy firms, is offering the new battery storage system from Tesla (pictured at right). They're also offering an off-grid system to residential, business and government customers across the country.  In Hawaii, many folks are frustrated with Utilities for putting a hold on their solar panel projects.  On Molokai alone, adding rooftop solar panels has been off the table since the beginning of the year.  Off-grid solutions are expected to become available in Hawaii in the first half of 2016.  *  Hawaii Gov. David Ige just signed a bill to expand the development of hydroelectric energy-generating projects in the state by allowing them to be built on agricultural lands.  
        
Maui's Pacific Biodiesel Technologies is looking to help move the Big Island to 100% renewable energy.  Pacific Biodiesel has already converted Hawaii County's fleet of vehicles to its fuel and plans to expand even more.  The company is looking at a project that involves tens of thousands of acres of sunflower crops to be used as feedstock for fuel.  *  And let's not overlook hydrogen fuel cells for cars.  The Hawaii Automobile Dealers Assoc. is predicting about 10,000 hydrogen fuel cell cars in the state by 2022, and that they will quickly outgrow electric vehicles by 2025!
Extreme Obstacle Challenge
                             
MAUI HAPPENINGS

thru 8/2: The Adams Family Maui Onstage tickets
8/1-2: Annual Maui Women's Golf Invitational Details
8/1-2 & 8/21-23: Fine Art Fair Banyan Tree Lahaina Info
8/2: Ikaika Nui Extreme Obstacle Challenge the scoop
8/2: 3rd Hawaii State Chili Championship Cookoff lowdown
8/3: Kaanapali World's Largest Golf Outing event
8/7-8: Lahaina Hongwanji Mission Obon Festival 7pm-10pm
8/8: Maui Craft Session Craft beer, spirits, & cigars
8/8-9: Maui Open Golf Tournament schedule
8/15: Kahului Jodo Mission Obon Festival 7:30pm - 9:30pm
8/15: Maui Whale Trust Benefit Dinner & Grammy Winner John Cruz details
8/22: XTERRA Adventure Fest off-road Triathlon Info
8/25-26: Roger McGuinn of the Byrds Concert tickets
8/29: Kula Shofukuji Mission Obon Festival  7:30pm

Maui Arts & Cultural Center tickets
7/31:  Society of Seven in concert
8/2: Maui Masterworks Festival ALL MOZART Concert
8/6: Maui Comedy Festival presents Patton Oswalt
8/14: Maui Calls 2015 - Fund raiser/dinner/auctions
8/21: Bamp Project presents Magic - Pop/reggae concert
8/21-23 & 8/28-30: Evita

Well, I think I've pretty much covered A-Z in my update.  I always look forward to your comments and suggestions.  If you're contemplating a move within your real estate portfolio - taking advantage of rising prices with a possible sale - or perhaps taking advantage of the low interest rates and moving up or buying another property ... Remember I have been a full time Real Estate Specialist since 1987 and have closed over $1.5 billion in Maui real estate sales.  As Broker/Owner of Berkshire Hathaway Maui Properties, Hawaii's only Berkshire Hathaway brokerage, I am available to you 7 days a week.  Aloha!

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