Kapalua Golf Villas Update
June 2016
LOCAL MAUI NEWS
Aloha Kapalua Golf Villa Owners!

Okay ... full disclosure ... I'm so hungry right now.  So let me appease the pang ... Time to put the feed-bag on Maui style!  Food Network's popular "Diners, Drive-ins and Dives" will premiere its "Soakin' Up Maui" episode on July 1st featuring Da Kitchen in Kahului, Fat Daddy's Smokehouse in Kihei, and the Like Poke? food truck.  Three other Maui eateries are featured on other recent or upcoming episodes of the show:  Outrigger Pizza/June 17th, Star Noodle/July 8th, and Miso Phat sometime in August.

"Shaka Tea" has introduced the first line of bottle iced teas brewed with Hawaii-grown Mamaki, which is known for its healing and revitalizing attributes.  The 3 flavors are available in Hawaii and soon California.

Seriously, I need to move on from food topics ... so I'll bring on the UGH! moment:  The NFL is moving the Pro Bowl game to Florida from Hawaii, and we also found out that Hawaii lost out on hosting America's Cup preliminary races.


Now let me show you the true Aloha Spirit of the people of Maui:
 
Following the terrorist shooting at the Pulse nightclub in Orlando June 12, 400 Maui residents volunteered to weave a special mile-long lei for the victims.  They worked 12 hours a day to make the 49 strands with 49 cowrie shells with a victim's name written on each shell.  They flew to Orlando to present the lei at the memorial and led an oli (chant) asking for guidance and strength.
       CURRENT MARKET ANALYSIS
Britain's vote to exit the European Union will likely have a long-term impact on the world economy, but in the short-term, U.S. real estate could be flooded with investors flocking to the U.S. as a safe haven, pushing up the dollar and sending down mortgage rates.  Fannie Mae Chief Economist Doug Duncan said "The Fed will very likely be on hold for some time as it observes the impact on U.S. and global financial markets."  If mortgage rates - already at historic lows - drop even further, that could help drive up sales of all types of U.S. real estate.

Meanwhile, China has invested nearly $1B in Hawaii real estate, and the wave is expected to continue. Similar to the Japanese investors of 25 years ago, they are targeting hotels, golf courses, and now, development sites including residential subdivisions.  There are lots of reasons for this investment wave to hit our shores including the loosening of visa restrictions, increased airlift, the emergence of the middle and upper classes in China, Hawaii's geographic proximity to China, and the U.S. dollar which is viewed as a safe harbor to Chinese investors.

Here on Maui, the number of single-family homes and condominiums sold jumped last month. There were 93 single-family homes sold compared to 88 sold in May 2015 - an increase of 5.7%. The median price of a single family home was $620,000 compared to $607,098 the same time last year, an increase of 2.1%.  Condominium sales on Maui shot up 7.3% to 118 units from 110 sold in May 2015. The median price of condominiums in Maui County decreased 7.8% to $423,500 from $459,500 last year.

Let's take a look at the Kapalua Golf Villas:

Status
Unit
Bd
Ba
 List $
 Sold $
Close
ACTIVE
26V1
1
1.5
650,000
ACTIVE
20V1
1
1.5
660,000
ACTIVE
19V1
1
1.5
795,000
ACTIVE
18T3-4
1
2
599,000
ACTIVE
15T7-8
1
2
680,000
ACTIVE
16T5-6
1
2
730,000
ACTIVE
17T7
1
2
750,000
ACTIVE
22T5-6
1
2
785,000
ACTIVE
15V3
1
2
795,000
ACTIVE
23P1-2
2
2
849,995
ACTIVE
14P1-2
2
2
850,000
ACTIVE
24P1-2
2
2
925,000
ACTIVE
24P7-8
2
2
935,000
ACTIVE
11T2
2
2
975,000
ACTIVE
19T6-7
2
2
975,000
ACTIVE
27V2
2
2
1,095,000
SOLD
27T1-2
1
2
755,000
730,000
05/16/16
SOLD
27V3
1
2
790,000
740,000
04/15/16
SOLD
21P7-8
2
2
919,000
850,000
04/27/16
SOLD
16V2
3
2
1,039,000
965,000
02/10/16
Figures from Realtors Association of Maui
TOURISM 
If one travels to Hollywood, you'd see lots of palm trees.  Turns out Hollywood has quite the effect on our palm trees -Tourism.  Scores of celebrities visit Hawaii each year, and their presence in the Islands brings media attention broadcasting the beauty of Hawaii and encouraging visitors to come here for their vacation.  For Hawaii tourism, revenue follows celebrity visits.  Beyonce and Jay Z were on the Islands last week ... and social media went wild.    Amy Schumer and Goldie Hawn are on Oahu right now shooting a comedy movie. Movies and TV shows like "Hawaii Five-O" (which starts shooting again next month) bring money, exposure, and jobs to the island economy.  Of course, many celebrities choose to live on Maui at least part time like Oprah Winfrey and Mick Fleetwood.  In fact Fleetwood will be presenting an exhibit of rock music photography starting this Thursday at his General Store in Lahaina.




And I know we're in the middle of summer, and it may be too hot for you to think about Thanksgiving. But I can give you a sneak peak at the Hawaiian Float set for the 90th Macy's Thanksgiving Parade  >>>>




So lets see how tourists filled our hotels this past week.  When you compare the same week to the time period last year ... occupancy fell 2% statewide to 82.8% full, while the statewide average daily room rate rose 3.1% to $254.11.  Again, that's statewide.  Maui always seems to outshine the rest.  Our occupancy rate edged up by 0.6% to 81%, while room rates increased 4.6% to $314.90. 
You've heard me sing the praises of Maui Beachfront Rentals where I keep my vacation rentals.  Lots of you rent out your apartments when you're not using them to offset the cost of owning the unit.  Here are some of the reasons I'm so big on this company.  They have a great online site where I can login anytime for full transparency including current occupancies, sales promotions, and owner financials.   And I think one of the reasons I get so many repeat bookings is their concierge services; car rentals, airlines, island activities, in room amenities.  You should check 'em out yourself MBR.
TRAVEL
In my "HUH?" file this week: United Continental is seeking to boost revenue by grouping passengers according to their willingness to pay.  What? Willingness to pay?  Was there ever an option? Before you get too crazy, Hawaiian Arlines has just initiated one version of it. It's called Bid Up.  It lets main cabin ticketed passengers to bid up on available first-class seats.  They get an email 10 days before departure, and successful bidders will be notified 48 hours before their flight.  I gotta let that one settle in for a bit ...

BUT there is a serious Upgrade alert for Hawaiian Airlines. On their new Airbus A330 planes, they'll be installing A330 Premium Cabins.  See that picture above?  Yup that is a lay flat lazy-boy type of seat.  Premium cabins will go on sale in September with dates and routes to be determined.  And winding up our Hawaiian Airlines stuff ... they've postponed plans to add a route from Honolulu to Melbourne as the Australian economy slows.

Virgin America began nonstop daily flights between L.A. and Maui a few days ago.  Last month they introduced nonstop daily flights between L.A. and Honolulu.  Island Air just restarted their five daily round-trip flights between Honolulu and Kona, with connecting flights to Kahului here on Maui, and Lihue on Kauai.  Island Air is looking at adding 8 more planes to its fleet, and possibly starting flights to the other side of the Big Island in Hilo.
     MORTGAGES
I always defer this section to my mortgage guy Dean Rathbun of Avis Mortgage.  Dean shared that it looks like the Federal Reserve is in no hurry to raise interest rates.  In fact they left the federal funds rate unchanged at this month's meeting.  According to Federal Reserve Chair Janet Yellen, "Low interest rates could become the 'new normal'."

Dean wants to address the mortgage rate free fall since the Brexit vote. Mortgage rates are now at the lowest average in more than 3 years, and they could go even lower!  Lower rates produce lower monthly payments and greater buying power.  Those who are well qualified can afford a home that's 8% more expensive than at the beginning of the year.
GREEN
Hawaiian Electric has released a report on how much renewable energy it's been using.  Including sources like biomass, geothermal, solar, hydro, wind and biofuels, the state's largest utility used 23.2% renewable energy sources to generate power by the end of 2015.    

Hawaii offshore wind projects have gotten a boost from the Obama administration.  They've put out a call for information to gauge the offshore wind industry's interest in acquiring commercial wind leases on 485,000 acres of submerged federal lands of Oahu.  So far 2 companies have expressed interest in developing major wind energy farms there at an estimated cost of $1.6 billion each.  

And there may be good news on Hawaii's clean energy front for businesses and residents who currently have no access to rooftop solar power because of where they are or how their buildings are designed.  Essentially businesses and residents such as condominium dwellers could rent space in a community solar farm and pay less for electricity as a result.
                             
MAUI HAPPENINGS
 
7/2: Travis Porter  concert in Wailea tickets
7/2: 51st Annual Makawao Parade  9am Baldwin & Makawao
7/2: Lanai Pineapple Festival 9am-3pm
7/5: Maui Guitar Extravaganza  Master Class 7-9pm information
7/11: Summer Ballroom Dance  Maui Beach Hotel
7/16:  Iao Valley 10k  details
7/23: Plantation Festival  Queen Kaahumanu Center 9:30am - 2:30pm
7/23: Maui to Molokai Paddleboard Race  info

4th of July  
Pie Contest   Queen Kaahumanu Center  details
LAHAINA: Starting 4pm on Front Street.  Closed to traffic from Baker to Hotel Streets.
Jazz Maui Free Concert Lahaina Library Lawn 5pm
Fireworks start at 8pm 

Maui OnStage  Iao Theater  tickets
7/8-31:  Monty Python Spamalot
8/9: An Intimate Evening with Ricki Lee Jones
8/30-10/16: Boeing Boeing
11/25-12/27: Mary Poppins

Maui Arts & Cultural Center
 
 tickets 
6/30: Wayne Brady
7/09: David Crosby  concert
7/28: Joan Osbourne  concert
7/29-30:  The MayJah RayJah   Island & reggae music


Obon is an annual Japanese Buddhist festival that expresses joy to be living and honors loved ones who've passed away.  Also known as the Festival of Lanterns, everyone is welcome.


I hope you have a great and safe 4th of July. If you have friends or fellow owners you think would enjoy these updates, shoot me a message and I'll include them next month.  I invite you to check out my website and to keep me in mind if you're looking to sell or perhaps add to your real estate portfolio. Remember I've been a full time Maui Real Estate Specialist since 1987. I have closed over $1.5 billion in Maui real estate sales, and I am available to you 7 days a week.

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