Honolulu Condos: October 2009

The Honolulu Board of REALTORS® released the resale figures below based on data collected from its computerized Multiple Listing Service (MLS) system. I have included data for the Honolulu condominium market.  The number of condos sold are for the year-to-date for 2009 and 2008.  The median prices cited below are year-to-date for 2009 and 2008 as well. 

Condominiums

The three neighborhoods, or areas, shown in bold italic represent the majority of Metro Honolulu.  Please feel free to visit our Honolulu condos website, where you will find more information about Honolulu neighborhoods and further Honolulu condo market information and reports. 

Every month, we write a newsletter, "Honolulu Condos - Real Estate News & Trends", which also includes our weekly newsletter, "Honolulu Condos - Listing Alerts".  Please see below for this month's issue.

Welcome to this month's issue of "Honolulu Condos - Real Estate News & Trends", provided by Douglas / Christopher Realtor Associates with RE/MAX Honolulu. This newsletter is published monthly and contains time sensitive information about the Honolulu Real Estate Market. It also combines the weekly newsletter, "Honolulu Condos - Listing Alerts" which includes current new condo listings and distressed property listings.

Don't miss the HOT LINKS at the bottom of this newsletter for such distressed property listings as:

• Lender Owned Property Listings
• Foreclosure Property Listings
• Short Sale Property Listings

Honolulu Condo Market Update

This month, sales of 345 condominiums were reported through the Board's MLS, an increase of 13.1 percent for condominiums, compared to the same month last year. Total condominium sales through September were 2,338, a 26.32 percent decrease from last year. The median prices paid for island properties in the first nine months of 2009 were $300,000 for condominiums, a decrease of 7.7 percent from the same time period in 2008.

Lawrence Yun, chief economist for the National Association of REALTORS®, provided the following commentary on Oahu's housing market:

"Home sales in general in 2009, to-date, were essentially at a 10-year low. One reason for the much lower sales can be explained by stricter mortgage underwriting guidelines. In addition, Hawaii suffers from the credit freeze that is taking place in the jumbo market and for second home purchases. However, the biggest reason for such low sales activity is likely due to fear of further home price declines."

"Consumer psychology appears to be decisively turning for the better as the housing market has been showing signs of bottoming, if it is not already past a bottom point. Affordability conditions are now at multi- year highs thanks to lower home prices and very low mortgage rates on conforming mortgages."

"The first-time homebuyer tax credit is also helping. It is no surprise, therefore, that home sales have begun to rise nationally for 5 straight months. The increases were beyond the normal seasonal uptick in spring and summer."

For Honolulu Neighborhood Market Watch, New Honolulu Condo Listings and Distressed Honolulu Condo Listings and Hot Links, read more.......

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Senate Banking Committee Chairman Chris Dodd (D-Conn.) says Senate Democrats have agreed to extend the first-time home buyer tax credit. The latest version extends the program to home sales signed - not closed - by April 30. Purchasers would have another 60 days to close the sale. The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.

The credit would be cut nearly 10 percent to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.

Source: Bloomberg News

This would be good news in Honolulu, where many homeowners have increased their home equity substantially in the last five to ten years and many are considering stepping up to a larger home, where many bargains can be found today. 

According to "Realtor" magazine online........

While obstacles to short sales remain, real estate practitioners say the process is becoming more efficient. Rather than waiting six months or more to push through a deal, agents say banks are more willing to negotiate prices up front.

"My gut feeling is that short sales seem to be the preferred avenue for distressed property now," says Cindi Hagley of San Ramon, Calif.-based Windermere Welcome Home. "It's cheaper for [banks] to do a short sale than go all the way to foreclosure."

The short-sale process has become more manageable now that banks are willing to pre-approve prices, reach out to underwater borrowers who have listed their homes for sale, implement Web-based systems that manage the short sale process, and add staff dedicated to short sales.

Additionally, the U.S. Treasury is set to implement a streamlined short sales framework and offer incentive payments of $1,500 to home owners and $1,000 to both loan servicers and second-lien holders.

Borrowers also prefer short sales because Fannie Mae requires them to wait only two years to own another home or even less than that if they were not delinquent. By contrast, those who lost their homes to foreclosure have to wait five years.

Source: San Francisco Chronicle, Carolyn Said (10/21/09)

There is always a large number of Honolulu Condos listed for sale as a short sale.  We have just begun a weekly newsletter, including newly listed short sales, foreclosures and lender owned listings.  Please contact us at Honolulu Condos to subscribe.

Hilton Hawaiian Aloha Friday King's Jubilee and Fireworks Show

Every Friday the Hilton Hawaiian Village puts on an "Aloha-Style" show, sort of like a luau show without the dinner. We recently checked it out, and I must say it was quite entertaining. The show started at 6:30 pm.The evening began with the King's Procession and then continued with the music, attire, performances and dance from Hawaii and other Polynesian Islands. The night ended with music to a spectacular fireworks display.

The performance was a reenactment of King David Kalakaua's royal court performances. The King entered wearing a navy blue suit adorned with medals on a red and yellow sash. Surrounded by the Village Guards who marched to the steady, slow beat of the drummers, the King took his place on the main stage and spoke to the crowd in Hawaiian. After he spoke, he claimed his throne and the Village Guards, with their golden horsehair plumed helmets and 1903 rifles, exited the stage and the show began.

The band played behind the King while the performance happened in front of him. The band used percussion instruments that included various gourds, rattlers, and pahus (drums). The stringed instruments included the slack key guitar, electric bass guitar, acoustic 6-string guitar, and a ukulele. They sang to some songs and others were completely instrumental. The band performed the vocals for the hulas with most songs sung in both Hawaiian and English. When they sang, it was in a low tone, not in falsetto. The songs were all medium to fast tempo for the hulas. I could recognized the twang sound of the slack key guitar when it played the melody of "He Aloha No O Honolulu." The songs played for the hulas all sounded like the traditional Hawaiian style music.

The dancers, both men and women, wore traditional attire according to the dance they performed. For some dances they used instruments or props. The men performed hula both by themselves and with the women. They wore sarongs or lavalavas with pants underneath. Like the women's costumes, their costumes were different colors and designs for each song. One energetic dance performed was called the "fa'ataupati" or "Samoan Slap Dance."

There was one part of the show when the men came into the audience from behind and scared some people but otherwise the audience just watched. An excellent show that demonstrated the types of music and dance practiced throughout the Polynesian islands. I would describe the experience as similar to what happens at a luau but without the food. You cannot tell from the pictures, but all of the seating arranged around the pool had good views. It was open seating and the cost was twenty dollars, which included one drink. If one drink is not enough, there is a poolside bar close by.

The hour-long show concluded with a short but energetic fireworks display which can be seen (and heard) throughout Waikiki Beach. Overall, it was an entertaining evening on the beach worth the price of admission.

Tips and info:

Official web site: http://www.hiltonhawaiianvillage.com/activities/entertainment.asp
Registered hotel guests can pre-purchase tickets for poolside seating at the Ali'i Tower desk near Tropics Bar & Beach Café. The desk is open 8:00 am - 9:00 pm daily except Fridays, and 8:00 am - 2:00 pm on Fridays. Tickets can also be purchased by hotel guests and the general public at the entrance to the Super Pool from 5:30 pm until show time on Fridays. Poolside seating includes one standard cocktail beverage.*

Show Schedule
Village Guards Precision Rifle Drill Team
6:15 p.m. (October to March)
6:45 p.m. (April to September)
Main Show at the Super Pool
6:30 p.m. (October to March)
7 p.m. (April to September
Fireworks Display
7:30 p.m. (October to March)8 p.m. (April to September)

As we have been learning, there are many Hawaiian proverbs and sayings that have been fun learning and even more entertaining trying to speak and pronounce correctly, but more importantly convey real wisdom and spiritual value. 

Here is another one of my favorites.

No Kekahi O Kakou Ka Pilikia, Malaila Pu Kakou A Pau.

Which translates as:

Should one of us get into trouble, we will all go that way.

(Adversity to one is adversity to all.) 

For more cultural information about Hawaii, please feel free to visit our website, Honolulu Condos..

Moana Vista Condominium Building in Honolulu Hawaii to become Pacifica:

Here's a very brief history:

1) Up For Foreclosure Auction

2) Auctioned & Sold to First Lien Holder

3) Now bought by San Diego Developer from First Lien Holder

And, now the details to this last development:

San Diego group buys Moana Vista in the Ala Moana area of Honolulu.

According to "Pacific Business News" . . . . . . . . . . . .

A San Diego-based developer has closed on a deal to take over the stalled Moana Vista high-rise condominium project and plans to resume work early next year.

The project will be renamed Pacifica, developer OliverMcMillan said in a news release.

OliverMcMillan purchased a $29.5 million lien filed by Hawaiian Dredging Construction Co. and acquired the interest owned by the project's original developer, KC Rainbow II of Honolulu.

The developer plans to give the half-completed 492-unit residential tower on Kapiolani Boulevard new exterior elevations, upgraded interior design and resort-level amenities, development director Dan Nishikawa said Wednesday in a news release.

"OliverMcMillan intends to improve the common area amenities and some upper-unit floor plans," Nishikawa said. "When completed, Pacifica is going to be a special place, a high-quality home, and will enhance the surrounding communities."

The developer plans to begin a new sales and marketing program for the building, and will notify the previous buyers of their priority to purchase in Pacifica.

Three Newly Listed condos in Waikiki Listed for Sale:

Here are three more interesting new listings of Waikiki Condos that came up for sale over the last few days.

1) Ilikai Apartment Building #2137 - 1bd/1ba, ocean & yacht harbor views - $355,000

2) Waikiki Landmark #1803- 2bd/2ba, pool deck, Ala Wai canal and mountain views - $645,000

3) The Watermark #405 - 2bd/2ba, new building, upscale amenities - $950,000

(Please note that the listing links above will not work once the unit is sold.)

These condos are listed by other real estate brokerages, however I can represent you as a buyer.  Please feel free to email me at Douglas@HNLCondos.com, or call me at 808-497-3810 and we can schedule some time to look at any of these great condos.

For further information:  Ilikai Apartment Building, Waikiki Landmark, The Watermark, or search the Honolulu and Oahu MLS.

Although Hawaii has it's fair share of distressed properties, including bank owned, foreclosed and short sales, with metropolitan Honolulu and the condo segment of the market, it is rare to find many bank owned condominiums for sale.  At most, there are never more than a half dozen for sale, and they tend to sell very quickly.  It is even more rare to find them in the Waikiki area.

One such condo just came on the market last week.  It's a stunning three bedroom, highly renovated unit in a great building called 1717 Ala Wai.  Located on the 27th floor, it has views of Diamond, the Pacific Ocean and parts of the Ala Wai Marina and the Ala Moana Park.

We had a client interested in the unit, showed it the day it came on the market and decided to make an offer.  So you understand the dynamics, five offers, including ours, were presented by the listing agent to the lender seller.  The lender countered all five and asked for everyone's "highest and best".  We are now waiting for the bank's response to see if our offer was accepted.

Here are some details about the property:

REO/Bank-Owned. Impressive & brilliant custom designs featuring landscape ceilings and lighting. Indulge in a complete custom built kitchen with stainless steel appliances. Wide-sized windows throughout the rooms maximizing natural light and capturing gorgeous city and ocean views. Corner-end, spacious & savvy layout. It's ready for your creative decor and happy life.

Basic Features: Acres: 1.349
Region: Metro
City Name: Honolulu
County Name:
Neighborhood: WAIKIKI
Schools: Jefferson
State: HI
Sub Area:
Subdivision:
Type:
Zip: 96815
Bathrooms: 2
Bedrooms: 3
Partial Baths:
Square Ft: 1230
Additional Features:

Additional Rooms: Open Lanai
Amenities: BBQ,Heated Pool,Patio/Deck,Recreation Area,Resident Manager,Security Guard,Trash Chute
Building Name: 1717 Ala Wai
Building Style: High-Rise 7+ Stories
Floor Covering: Ceramic Tile
Furnished: N
Interior Living Area: 1130
Land Area: 62066
Maintenance Fee Includes: Cable TV,Hot Water,Sewer,Water
Monthly Maintenance Fee: 552
Parking Spaces: 1
Parking: Assigned,Covered1,Guest
Prop Condition: Excellent
Remodel Year: 2007
Security: Key,Security Patrol,Video
Property Type: Condo
Unit Features: Corner/End,Even# Unit,Single Level
View: City,Coastline,Marina/Canal,Mountain,Ocean,Sunset
Year Built: 1970
Land Tenure: Fee Simple

This is not my listing and is listed by another real estate company, however I can represent you as a buyer.

Click here for more details for 1717 Ala Wai Blvd, #712, Waikiki, Honolulu, Hawaii.

 For anyone who is interested in other distressed properties in Honolulu, including bank owned condos, foreclosure condos as well as short sales, please feel free to contact us for our Weekly Newsletter of Distressed Properties for Sale. 

Oahu Waikiki Scenic Tour

Waikiki in Honolulu, Oahu is a strip of high-rise hotels set along one of the most famous beaches in the world. It is a unique experience -- an urban playground for people from all over the world. You can find dozens of activities, attractions, shopping, restaurants, and night life all within walking distance of your hotel room. The area caters to upscale visitors with some of the most luxurious and elegant accommodations on the island, yet it also offers choices for budget conscious travelers.

Historically, Waikiki was the playground of Hawaiian ali'i (the nobility). In ancient times, Waikiki was a wetlands area of fish and duck ponds, taro patches and rice fields. It was bordered by groves of coconut trees and a glistening beach on beautiful Mamala Bay.

By the 1920's, the golden age of luxury liners established Waikiki as a premier destination. This first wave of development gave Waikiki a distinctively Art Deco style. Adventurous travelers from all over the globe began experiencing the Aloha spirit for the first time.

In the 1960's, jumbo jets began landing at Honolulu International Airport, ushering in a new era of tourism. Waikiki became the most famous strip of beach in the world, ringed with high-rise hotels and accessible to middle class travelers.

The Beach: Waikiki Beach is actually a string of beaches stretching two and half miles along the ocean, from the Hilton Hawaiian Village to Diamond Head. Here you will find sparkling sand gently sloping into turquoise waters, elements that make it a world-class beach. The soft sand bottom and safe waters make it an attractive spot for swimmers, surfers, and other water enthusiasts. It's also a great place for people-watching.

On the beach you can rent equipment for watersports of any kind. If you are not staying at one of the hotels, a good area for parking is around Kapiolani Park (toward Diamond Head). The beach areas at this end are quieter. There are showers, restroom facilities and picnic pavilions nearby.

The Waikiki District stretches inland from the beach to the Ala Wai Canal. There are a multitude of hotels, stores, restaurants and sightseeing attractions accessible by foot. The Waikiki Trolleys offer a two-hour tour for $15 for adults and $5 for children. (You can get on and off whenever you want to.) For specific information on dining, shopping, and watersports , see those sections on the Vacation Planner. The following are the other attractions you'll find exploring Waikiki:

Hilton Hawaiian Village: a 20-acre complex featuring a lagoon, gardens, waterfalls, penguin pond, and the Rainbow Bazaar for souvenir shopping.

Tea House of the Urusenke Foundation: a tranquil oasis where you can take part in a Japanese tea ceremony served by kimono-clad ladies.

The Royal Hawaiian Hotel: an elegant reminder of old Waikiki, with a gracious lobby and gorgeous gardens.


Damien Museum: an exhibit which pays tribute to Father Damien for his work at the 19th century leper colony at Kalaupapa, Moloka'i. He was later canonized as a saint.

Waikiki Aquarium: a recently renovated attraction featuring exhibits on reef life, Hawaiian monk seals, sharks, and a mahimahi hatchery.

Honolulu Zoo: a charming environment featuring Indian elephant shows, an African savannah habitat, and animals from around the world. Includes a petting zoo for kids.

Kapiolani Park: a great place for picnicking, swimming, and just about any kind of sport from tennis to soccer to archery. The Royal Hawaiian Band plays on Sundays, and other musical events take place at the Waikiki Shell.

Once you've done Waikiki, you may be ready for exploring other neighborhoods in Honolulu, Hawaii.