Mele Kalikimaka & Hau'oli Makahiki Hou
December 2015 

LOCAL MAUI NEWS
Aloha Kapalua Golf Villa Owners!

The flowing Hawaiian words, just below our tropical decorated tree on the beach, translate to Merry Christmas and Happy New Year. Let's see if we can stir up a little good news here. Hawaii is set to get a much needed broadband boost from a new undersea cable, the Moana Cable, which will link the Islands with New Zealand. It's good news for 2 reasons: Our existing fiber cables connecting Hawaii to the world could start deteriorating, and we are talking about a f-a-s-t upgrade.  It will rely on 200 gigabit-per-second technology.  The ultimate capacity will be 20 terabits per second.  And for those of us who don't know our terabit from our elbow ...
             
Current average speed in Hawaii is 20 Megabits per second
1 Gigabit = 125 Megabits
1 Terabit = 1 million Megabits
You're Welcome.
     
In the yummy department ... our own Mama's Fish House was ranked #2 on OpenTable's list of the 100 best restaurants in the country!   

Last month I told you about a proposed 1500 home, $465 million project - Olowalu Town.  Well, looks like its not going to happen.  Their final environment impact statement was rejected. However, there are plans to develop a $13 million, 39-unit hotel-condominium project in Kihei - the Nani Loa.

Hawaii has been ranked the healthiest state in the nation for the 4th time in a row by the United Health Foundation.  Please ... we live in paradise.
       CURRENT MARKET ANALYSIS
Hawaiian Santa PaddleboardingThe Fed controls the federal funds rate - short-term interest rate - that banks use to borrow money.  That rate inadvertently ends up being passed on to consumers.  So, what does the decision to raise that rate mean for housing?  Well the Fed made clear that it's going to issue a gradual tightening cycle.    Lawrence Yun, chief economist for the National Association of Realtors, says "that an uptick in short-term rates shouldn't have a big effect on those looking to borrow in 2016."  I'll have more on the subject in our Mortgage section.  
    
Sales of single-family homes in Maui fell by 5.2%  last month to 72 sold in November, compared to 76 sold in November 2014. The median price of those home also declined by 6.3% over November of last year.  Condominium sales on Maui picked up by 8.8% with 74 units sold last month, compared to 68 sold during the same month last year.  The median price soared however by 30%.

If we widen the scope and look at year to date sales (January through November), single-family homes on Maui picked up by 13% with a 2% increase in median sales price compared to the same period last year.  The year-to-date condominium sales on Maui also picked up slightly by 2%, with the median sales price dropping slightly by 1% during the same time period in 2014.

Let's take a look at Kapalua Golf Villas:

Status
Unit
Bd
Ba
 List $
 Sold $
Close
ACTIVE
26V-1
1
1.5
650,000
ACTIVE
20V-1
1
1.5
660,000
ACTIVE
14V2
1
1.5
675,000
* ACTIVE
19V1
1
1.5
795,000
ACTIVE
15T7-8
1
2
600,000
ACTIVE
18T3-4
1
2
615,000
ACTIVE
15T5-6
1
2
699,000
ACTIVE
24T3-4
1
2
725,000
ACTIVE
16T5-6
1
2
730,000
*ACTIVE
27T5-6
1
2
735,000
ACTIVE
27T1-2
1
2
755,000
ACTIVE
17T7
1
2
795,000
ACTIVE
27V3
1
2
815,000
ACTIVE
23P1-2
2
2
879,000
* ACTIVE
21P7-8
2
2
919,000
ACTIVE
24P7-8
2
2
935,000
ACTIVE
14P7-8
2
2
950,000
* ACTIVE
11T2
2
2
975,000
ACTIVE
27V2
2
2
1,095,000
SOLD
27T7
1
1.5
699,000
650,000
04/15/15
SOLD
21T1-2
1
2
767,000
767,000
03/31/15
SOLD
24P3-4
2
2
675,000
660,000
01/14/15
SOLD
23P3-4
2
2
775,000
725,000
03/27/15
SOLD
16P3-4
2
2
819,000
805,000
05/06/15
SOLD
14V3
2
2
829,000
775,000
05/05/15
SOLD
26P3-4
2
2
850,000
800,000
03/02/15
SOLD
26P5-6
2
2
949,000
918,000
05/29/15
* new listing
* $ reduced
Figures from Realtors Association of Maui
TOURISM and TRAVEL
Snowmans family at sea beach in santa hats. New years and christmas holiday in hot countries concept.
According to a new report by the Hawaii Tourism Authority, visitors to Hawaii grew by nearly 5% in October, setting a new record for the month. Total spending by those visitors fell slightly by 2.2%.  Year-to-date, visitor arrivals increased by 4.2%, with spending also increasing by 2.2%.  Visitor days, (the number of arrivals multiplied by the average length of stay), increased by 3.9% in October, while year to date those numbers were up 3.7%.   We even saw arrivals by cruise ships rise - jumping 52.7% in October compared to the same month last year.

Hawaii's statewide hotel occupancy rate hit 73.5% last week, a 4.7% increase from the same week a  year before.  The statewide average daily room rate rose just 1% to $210.04.   As usual, Maui room rates last week were the highest ... coming in at $236.70

The holidays get quite busy around here and I have quite the list of holiday events in my Maui Happenings section below.  One thing I don't have to give a thought to over the holidays is my vacation rental.  I know that my rental is in the best hands as are my guests, because those hands are Maui Beachfront Rentals.   From time to time I get asked by some of you to recommend a company.  All I can say is being in the business I could use any of them, yet I choose to keep my vacation property with MBR.  They provide the best of both worlds: all the luxury of a resort and all the comforts of home.  Not to mention the best bang for your buck.

Hawaiian Hula OrnamentAir capacity from the U.S. Mainland to Hawaii is expected to rise by 6% through February. The number of visitors could climb 5.8% from the West Coast, while the U.S. East Coast is expected to rise by 7.2%.  Island Air is bringing back local travel coupons with "Island Travel Paks"!  For leisure inter-island flights the "Holoholo" package will offer 6 one-way coupons for $71.50 per flight.  For the business traveler the "Ka Elele" package will offer 20 one-way coupons for $74.95 per flight.   Virgin America, which entered the Hawaii market last month with flights between San Francisco and Honolulu, just launched their second route with nonstop flights to Maui!   Hawaiian Airlines is going to offer summer seasonal service from California to Kauai.  Daily flights to Kauai from Oakland and Los Angeles will start in mid-June through Sept 5, 2016. Hawaiian will also bring back its seasonal service to Kona on the Big Island starting May 27th - 3 times a week from Oakland, and 4 times a week from Los Angeles.

Hawaiian also announced a new daily nonstop service between Honolulu and Narita International Airport in Tokyo beginning July 22, 2016.  That should provide the State with an additional $130 million in visitor spending and $14.7 million in State Tax Revenue.  Hawaiian already operates daily flights to Tokyo Haneda Airport, Osaka Airport and Sapporo Airport.   South Korea is jumping into the game as well.  Jin Air South Korea's low-cost airline just began flights to Honolulu from Seoul. It's possible that Air Busan, another South Korean carrier may launch Hawaii service next year.
     MORTGAGES
Hawaiian Palm & Presents
So the big news has been that Federal Reserve Chair Janet Yellen, announced the Fed is raising interest rates.  I'm going to turn things over to my go-to guy Dean Rathbun of Avis Mortgage .  Dean shares that there's no reason to get nervous.  This was a "very small move" - only 0.25% points.  The Fed consensus is that it will reach 1.5% in late 2016, 2.5% in late 2017, and then reach 3.25% by the end of 2018, close to its longer-run normal level. So why raise the rate at all?  I believe the Fed wants to make sure that inflation doesn't overheat at some point and force the Fed to raise rates abruptly.  That could push the economy into recession.  Conversely, if the economy slows unexpectedly, the Fed now will have the ability to reverse course and reduce its federal funds rate in order to stimulate growth. Because of all the news coverage, this may influence fence-sitting buyers - and more important, fence-sitting sellers who intend to buy as well - to act before rates get much higher.

And Happy Holidays from Fannie & Freddie!  As they've done for the last few years, they will halt foreclosures for the holidays through Jan. 3, 2016.
GREEN
hawaiian xmas tree
A NextEra subsidiary will be developing a 60-megawatt wind farm on the southern slopes of Haleakala on Maui - the Kahikinui wind energy project.  This will be the 8th wind farm in Hawaii.   According to a report by the Solar Energy Industries Association, Hawaii continues to be ranked as one of the top states in the country when it comes to solar panel installations. 

Hawaii is about halfway to reaching its energy efficiency goal of attaining a 30% reduction in energy consumption through efficiency measures.  We're also 21.1% of the way to achieving 100% renewable energy by 2045.  In terms of resources, wind supplies 29.1%, rooftop solar panels 27.3%, biomass 21.7%, geothermal 12.3%, hydroelectric 4.3%, commercial solar 3.4%, and biofuels 1.9%.
Surfing Santa
                             
MAUI HAPPENINGS
 
Santa Sightings
Now - 12/25 Maui Fish-mas Scuba Claus 11am, Elf 3pm info
12/20: Santa arrives by outrigger canoe 3pm Kaanapali details
12/20: Santa at Lahaina Cannery Mall 10am - 2pm & 4pm - 7pm
Holiday Events Whalers Village schedule
Lahaina's Famous Banyan Tree in lights
Christmas Eve: 
Santa arriving 9:45am  Makena details
Santa arrives by outrigger canoe at noon Polo Beach Fairmont Kea Lani
Santa 10am - 3pm Lahaina Cannery Mall

Maui Celebrity Series Sheraton Kaanapali tickets
12/30: William Shatner  with crooner Brian Evans & comedian Louie Anderson
1/23:   Jeff Bridges in Concert - "The Dude" on Maui
1/30:   Brian Evans in Concert


Maui Arts & Cultural Center tickets 
12/20 & 26-27: Maui Film Festival Academy Screenings
1/1: Mahermageddon  Bill Maher, David Spade, Jeffrey Ross  Comedy
1/2: Returning to our Roots   Hawaiian documentaries
1/3: Straight no Chaser   male acappella group
1/7: Kurt Muroki Ensemble
1/8: The Rough Riders  Kapono, Cruz,Noland
1/16: Frank Vignola with Vinny Raniolo     guitar
1/18-19: New Shanghai Circus
1/21: Les Ballets Trockadero  all male parody
1/22: Jim Messina in concert
1/22: Dave Nelson in concert
1/23: Judy's Gang love to dance  ages 3 and up
1/24: Broadway Diva Pops
1/26: Chicago in concert
1/30: UB40
1/30: Las Cafeteras   Son Jarocho sounds

Various Events
12/26-27: Lahaina Arts Society Fine Arts Fair   Banyan Tree
12/26:  Kwanzaa Celebration information
12/31:  Vaudeville "Swing Into 2016" New Years Eve tickets
1/6-10: Hyundai Tournament of Champions Kapalua
1/8-9:  4th Annual Willie K BBQ & Blues Fest info
1/30:   Run/Walk For The Whales info

At this time of year we all try to count and remember what we're Thankful for.  As we celebrate our Berkshire Hathaway Maui 1 year anniversary, I am thankful for your loyalty, your response to my monthly updates, and keeping me in mind if you're looking to sell or perhaps add to your real estate portfolio.  Remember I've been a full time Kapalua Golf Villa Specialist since 1987 and have closed over $1.5 billion in Maui real estate sales. 

Happy Holidays!

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.
If you are currently listed with another Broker, this is not intended to disturb that relationship
Local Lender
    Low Fixed & Adjustable Rates
Condo-tel Lender for over 23 Years
DEAN RATHBUN
Toll Free (888) 455-AVIS (2847)
Increased Income  Reduced Expenses
Never Pay For Guest Damages
Guest Travel Insurance
 Eliminates Guest Refunds
Maui Beachfront Logo Shell
MAUI BEACHFRONT RENTALS
Toll Free (888) 661-7200
Copyright 2015. All Rights Reserved.