Honolulu Condos: January 2010

Foreclosures in Honolulu, Oahu Bring Opportunities for Real Estate Buyers

According to Lucy Clark, who recently wrote in the "Hawaii Reporter":

President Obama asked the banks to put a stay on foreclosures during the holiday season. The holidays are over and the expectations are that the market place will be flooded with foreclosure sales for the next two years, our island home included.

Buyers, this is a great time to buy. Interest rates are very, very low. The $8,000 tax credit for first time homebuyers and the $6,500 tax credit for existing home owners has been extended until May 2010.

Foreclosures most likely represent the best buy for your money. The banks don't want the property, they want money - so they are typically willing to sell for much less than the market value of non-foreclosed competitive listings.

Yes, there will almost certainly be repairs - but who doesn't buy a resale house without the expectation of repairs, renovations and upgrades? If your offer is structured properly, you can likely get the bank to pay for your closing costs - the money saved can go directly into upgrading your purchase.

With the government offering loans that require 0 - 3.5% down payment (vs conventional financing that requires 20% downpayment) more cash stays in your pocket.

With a growing foreclosure market, it makes sense to jump in and acquire your own piece of Paradise.

On the Lighter Side - "Pirates of the Caribbean"

Next 'Pirates' movie to be shot in Hawaii:

The fourth installment of the "Pirates of the Caribbean" movie franchise will be filmed in Hawaii this summer, state officials said Monday.

"Pirates of the Caribbean: On Stranger Tides," starring Johnny Depp, will film on Kauai and Oahu this summer, Bob Iger, president and CEO of The Walt Disney Co., told Gov. Linda Lingle on Friday, Lingle's office said.

The film production is expected to generate an estimated $85 million in direct and indirect spending in the state, and is expected to create hundreds of jobs for local residents. The movie is scheduled to be released in summer 2011.

"We've always sought out the most extraordinary and exotic locations for the ‘Pirates of the Caribbean' films," producer Jerry Bruckheimer said in a statement, "and previously shot briefly on both Maui and Molokai for ‘Pirates of the Caribbean: At World's End.' Hawaii provides an amazing range of both land and seascapes, and we're delighted to return for ‘On Stranger Tides.'"

Disney plans to open its first Hawaii resort at Ko Olina in 2011. The company's ABC network is wrapping up production on the final season of its hit TV series "Lost" after nearly six years in Hawaii.

Listing Alerts - Honolulu Condos and Single Family Homes

Aloha!

Please view the links below for this week's Listing Alerts.

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

• Lender Owned Single Family Home Listings*
• Foreclosure Condo Listings
• Short Sale Condo Listings 

*NEW THIS WEEK

Also, please feel free to visit our website, one of the most complete Honolulu Condominium Directories available online at www.HNLCondos.com.

NEW CONDO LISTINGS

These condo listings are new listings that have come on the market for sale, since last week's newsletter.

MLS Search page on our Website or set up your own Listing Manager Account.

ALA MOANA NEW CONDO LISTINGS

To view all Honolulu condo listings please visit the MLS Search page on our Website or set up your own Listing Manager Account.

DISTRESSED CONDO AND HOME LISTINGS - HOT LINKS

Distressed Bargain Properties for January 27th, 2009

These distressed Condo and Single Family Home listings include REO, or lender owned properties, foreclosures and short sales. All the distressed Condo listings are for Metro Honolulu only, while the Lender Owned Single Family Home Listings are for Metro Honolulu as well as the entire island of Oahu. New Listings are new this week, since last week's newsletter.

Please click here to read a complete definition or description of Lender Owned, Foreclosure and Short Sale Properties .

LENDER OWNED CONDO LISTINGS - ALL

LENDER OWNED CONDO LISTINGS - NEW - No New Listings This Week

LENDER OWNED SINGLE FAMILY HOME LISTINGS - ALL (METRO HONOLULU)

LENDER OWNED SINGLE FAMILY HOME LISTINGS - NEW (METRO HONOLULU)- No New Listings This Week

LENDER OWNED SINGLE FAMILY HOME LISTINGS - ALL (ENTIRE ISLAND OF OAHU)

LENDER OWNED SINGLE FAMILY HOME LISTINGS - NEW (ENTIRE ISLAND OF OAHU)- No New Listings This Week

FORECLOSURE CONDO LISTINGS - ALL

FORECLOSURE CONDO LISTINGS - NEW - No New Listings This Week

SHORT SALE CONDO LISTINGS - ALL

SHORT SALE CONDOS $0 - 200,000

SHORT SALE CONDOS $200,000 - 400,000

SHORT SALE CONDOS $400,000 AND OVER

SHORT SALE CONDO LISTINGS - NEW

There Was Some Good News in Last Decade for Oahu and Honolulu Housing

The turbulence of the past 10 years purged an unprecedented run up in the housing market and its accompanying ill-conceived sub-prime financing. Fortunately, not all the real estate news was bad and despite the stop and start market since the boom, the 10-year real estate snapshot is positive. Here is a summary of how the housing landscape changed since 1999:

Multiple Listing Service goes online

"Ten years ago there was no other way to give property information to the customer other than ripping the page right out of the MLS book," recalls Russell Nishimoto, Realtor and partner at Prudential Locations. "We would get a new book every two weeks, one week it would be condos and the next it was single-family."

Today, the worldwide marketplace is literally at the fingertips of buyers and sellers who have access to a computer and can log onto the Internet. In just the few years since the MLS was made available to the public, the typical buyer now begins their search online. According to data collected by the National Association of Realtors, as many as 90 percent of buyers do some of their search online.

"Our role as agents remains to provide credible and constructive input and recommendations to successfully complete the process," says Nishimoto. "The customer can initiate the search on line, but it's a team effort. They still rely on us to help them facilitate the purchase or sale."

Hundreds of condo units are built

Fourteen new condo buildings and nearly 4,000 new condo units were built in Honolulu - 2,924 in Kakaako alone - during the recent boom, providing plenty of inventory for plenty of buyers wanting to downsize or move closer to town.

"In 1999 and the early 2000s, we were coming out of a down cycle," says Nishimoto. "Supply was good, prices were low and then add to that interest rates were historically low, making it a great time to buy. Builders were there to take advantage of the great timing."

Median prices on Oahu appreciate

Despite a slower paced market and drops in prices since the boom days, a snapshot of the change in median prices since 1999 by neighborhood show a staggering 60- to 180-percent increase. The median price of a single-family home on Oahu has jumped from $290,000 in 1999 to $580,000 today.

Incidentally, the same cannot be said for the Dow Jones Industrial Average, which was performing in the 11,000-plus range in December 1999, right about where it remains today.

Homeownership is also up 2 percent on Oahu.

Some things haven't changed, according to the national statistics. NAR reports neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future.

Hotels in Waikiki Ready for an Extreme Makeover

Last phase of $1B project will upgrade Kaiulani and revamp beachfront site.........

According to an article written by Robbie Dingeman in the "Honolulu Advertiser" newspaper, "Kyo-ya Hotels & Resorts - owner of such Waikīkī landmarks as The Royal Hawaiian and Moana hotels - is gearing up for the final phase of a $1 billion upgrade project that would build the first new oceanfront hotel along the fabled beach in more than 30 years.

The aging Princess Kaiulani hotel also will gain a new tower, demolish two other hotel buildings and revamp an existing hotel tower in an extensive facelift.

The resort company expects to file the final environmental impact statement for the project this week, according to Kyo-ya executive vice president Greg Dickhens.

The new 26-story beachfront hotel would be built on the site now occupied by an eight-story hotel that is part of the Moana Surfrider, A Westin Resort. Dickhens said the new hotel would be managed as a separate entity.

It's likely that Starwood Hotels would continue to manage the property, which could be run under a luxury hotel brand, such as St. Regis or W Hotel, he said.

The resort company has been talking publicly about the extensive renovation project for the past two years and has won the support of the Waikīkī Neighborhood Board.

Dickhens said most of Waikīkī's hotels were built in the 1960s and 1970s. "It's tough to be competitive when your product is 30, 40, 100 years old."

Since the makeover plans first emerged, the company has changed from including a timeshare component to a hotel/condo-hotel/residential mix that includes 61 residential units in the top part of the new Pikake Tower at the Princess Kaiulani site.

The number of traditional hotel rooms would decline from a total of 1,140 to 937; the retail space would go from less than 25,000 square feet to 82,000; and the number of parking spaces will increase by 167.

This is the latest in a series of extensive renovations of the aging resort area, which anchors the state's No. 1 industry. Kyo-ya recently completed a makeover at the Sheraton Waikiki, and had previously done extensive renovations at The Royal Hawaiian and Moana.

Other large-scale projects in recent years include Outrigger's Waikiki Beach Walk, developed at a cost of $535 million, and Kamehameha Schools' $115 million remake of the Royal Hawaiian Center. Other new construction included the Trump Tower and Hilton's Grand Waikikian timeshare resort.

After the final environmental study is reviewed, Dickhens estimates an 18-month process to get the necessary government review and permits.

Waikīkī Neighborhood Board Chair Robert Finley said the project got approved by the citizen board because it proposes knocking down older buildings and simplifying traffic in a congested part of Waikīkī.

"During the recession, it's nice to see them spending money," Finley said. And those who live and work in the area said they like the idea of reducing traffic congestion on busy Ka'iulani Avenue.

He added that the buildings targeted for demolition won't win much support.

He said the Princess Kaiulani redesign gets rid of older buildings and moves the hotel entry traffic onto the property.

Finley said there are more questions and concerns about the new tower proposed along the shore near the Honolulu police station.

"That old building is so nasty looking," he said. "Getting it gone would be nice." But Finley said people are watchful of whatever will be built beachfront and will be paying attention during the government approval process.

"It's going to be right on the water, it's going to be taller than what's there now," Finley said.

He said he could understand some concern from the nearby Hyatt Regency Waikiki Beach Resort and Spa. "It would block part of their ocean view much like the Hyatt blocked part of the PK's view," Finley said.

Hyatt General Manager David Lewin said his company does not oppose the plan at the Princess Kaiulani part of the project: "It would be a great addition to Waikīkī. While the new tower will impact our 'ewa views, it is a good use of the lot and an upgrade to Kalākaua."

However, Lewin said Hyatt doesn't support the tower next to the Moana for two reasons.

"It does not meet the design requirements of the special district. The height and setback are in direct violation, especially the height," he said.

Dickhens said Kyo-ya is asking for approvals for variances for the project but proposing a taller, thinner design that includes a two-story, open-air entryway that it says will provide ocean views and other amenities that make it worthwhile and an improvement over the shorter "lot line to lot line" footprint of the old building.

Lewin said he thinks the tall tower won't win friends for the visitor industry.

"If approved, it will be another poor reflection on the industry in the eyes of the public," he said.

But Dickhens said the modern design, landscaped green space and increased areas accessible to the public make the overall project an improvement that is winning support.

If approved, Dickhens said he expects the net number of unionized employees to remain about the same in the future because running a new separate high-end hotel will require more workers while the residential units would eliminate positions.

Finley said Kyo-ya has been open to questions and concerns about the project and is proposing a plan that adds some elements that the community likes, including another public pedestrian access from Kalākaua Avenue to Waikīkī Beach; and a $500,000 contribution to the state's plan to replenish sand along the beach.

Dickhens said working with the community, including descendants of the Native Hawaiian families of the area, has been rewarding.

And that's how the project has evolved. "You can't just draw up a lot of pretty pictures and get it approved," he said.

Dickhens also highlighted the new public surfboard racks - about 100 - planned and the opening up of the view of the ocean views from Kalākaua.

One Waterfront Tower - Bank Owned Foreclosure

One Waterfront Tower, aka 415 South Street, is one of my favorite condo buildings in the Kaka'ako neighborhood of Honolulu.  We affectionately refer to the two towers as the "paper clip" buildings.  Right now there is a 1,470 sqft condo on the 3^rd floor of the Makai Tower for sale at a great price.  Unit 301 is a two-bedroom, 2-bath unit with nicely protected water and city views, as well as a great layout in general.  It is a Leasehold property.

OneWaterfront Tower #Makai 301 is priced at $460,000 and is bank owned (a foreclosure).  To give you an idea of value, available comparable sales of leasehold properties in the building show an average cost per square foot of $423.  OneWaterfront Tower #Makai 301 at $460,000 is $313 a square foot, or $110 less per square foot, or a savings of $161,810 overall!!

If you want a great condo in a great building at a great price, here's your chance.  Don't wait - this will sell quickly.  This is not our listing, however we can represent any buyer.

One Waterfront Condos - Building Details

One Waterfront Condos - Floor Plans & Configurations

One Waterfront Condos - More Photos

One Waterfront Condos - More Current Listings

Subscribe to our "Honolulu Distressed Properties" Weekly Newsletter

Mortgage For Your Honolulu Real Estate, Consider FHA First - by Guest Writer

Tim O'leary, with Wells Fargo Home Mortgage of Hawaii, is someone I consider a friend, as well as someone who I believe offers a high quality level of service and loan product.  He has graciously offered to contribute an article from time to time about, of all things, mortgages, lending and related subjects.  Please enjoy his first contribution:

In 1965, the Department of Housing & Urban Development, HUD was formed.  Under HUD operated & operates today as the Federal Housing Authority, known as the FHA.  HUD's goal, through the FHA, was to increase homeownership across America.  It was a major breakthrough in lending allowing potential home buyers to put as little as 5% down payment and lenders would be willing to lend money with the assurance that the federal government would ‘insure' the loan to difference in the event a borrower would default on a loan. 

With today's financial uncertainties, FHA has been the ‘darling' of mortgage lending.  Conventional lending woes created through the many problems at Fannie Mae & Freddie Mac, has made traditional lending much more restrictive.  Below is a comparison of FHA and Conventional mortgages.

Down Payment

FHA- as low as 3.5% down

Conventional- 10% down

Credit Scores

FHA- as low as 620 without pricing additions.

Conventional-  Minimum of 680 and ‘Pricing Tiers' beginning at 739 scores.

Funds for closing requirements

FHA- entire down payment may be a gift

Conventional- Borrower must have a minimum of 5% of their own funds in the transaction

Mortgage Insurance

FHA - 96.5% financing uses a factor of .52% & charges 1.75 Premium for a Single Family which can be financed, making it tax deductible.

Conventional - No upfront Premium, but a much higher monthly factor which increases your long-term monthly payments

Refinance Streamline Program

FHA- Allows for a Streamline Refinance without an appraisal.

Conventional- dependent on if it a Fannie Mae loan, or a Freddie Mac loan, different restrictions apply.  Guidelines can be much more restrictive.

If an FHA loan meets your needs, in general, it is a better mortgage to get.  If it doesn't, I can still get you conventionally financed, but realize it will take more work.

Here is Tim O'Leary's Contact Information:

Tim O'Leary
Private Mortgage Banker
Wells Fargo Home Mortgage of Hawaii, LLC
MAC M2204-092
1357 Kapiolani Blvd Suite 910
Honolulu, HI 96814
808.952.5054 Tel
808.227.1199 Cell
866.967.9082 Fax
Tim.O'Leary@wellsfargo.com
http://www.homeloans.com/tim-oleary1

And, of course, if your looking for current Honolulu Condos for Sale, please get in touch with us any time.

Honolulu Condos - Real Estate News & Trends 1/20/10

Aloha!

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

Also, please feel free to visit our website, one of the most complete Honolulu Condominium Directories available online at www.HNLCondos.com.

Honolulu Market Update for 1/20/10

Honolulu, Hawaii and Real Estate in Oahu

Just for fun, let's review the forecast for 2009 and compare it to the actual numbers. It's interesting to see what was predicted a year ago and what actually happened.

Unemployment: The unemployment rate for 2009 was actually worse than predicted. It will remain at the same level in 2010 with a slight increase.

Real Personal Income (inflation- adjusted): Personal income will show a smaller loss this year than what was predicted for 2009. This may be because there were large gains in public sector earnings, especially large military pay increases in 2009. Total private sector labor and proprietor income will continue dropping, and it will appear as another loss in 2010.

Visitor Arrivals: The number of visitors in 2009 were about the same as predicted so far. According to UHERO, we are very likely past the bottom of the tourism downturn. There will be more visitor arrivals in 2010. It is predicted that gradual improvement will begin to occur in early 2010. However, recovery will likely be slower because of lingering weakness in the US and Japan and the disastrous State budget picture. Key for 2010 is "patience."

What about the real estate in Oahu? As personal income becomes stable, affordability is more likely to improve. Some experts predict there will be a smaller drop in 2010 before prices stabilize in 2011. There could be more foreclosures in the first quarter, and more short sale listings in hotel condominiums and vacation properties. It appears good values would still be available in market the first half of 2010.

Click Here To read More, including graphs and charts, as well as sales and inventory data

New Condo Listings

These condo listings are new listings that have come on the market for sale, since  last week's newsletter.

ALA MOANA NEW CONDO LISTINGS

DIAMOND HEAD NEW CONDO LISTINGS - No New Listings This Week

DOWNTOWN/CHINATO WN NEW CONDO LISTINGS

KAKAAKO NEW CONDO LISTINGS

KAPIOLANI NEW CONDO LISTINGS - No New Listings This Week

MAKIKI NEW CONDO LISTINGS

WAIKIKI NEW CONDO LISTINGS

To view all Honolulu condo listings please visit the MLS Search page on our Website or set up your own Listing Manager Account.

Distressed Condo Listings - Hot Links!!!

These distressed Honolulu condo listings include REO, or lender owned properties, foreclosures and short sales. New Listings are new this week, since our last week's newsletter.

Please click here to read a complete definition or description of Lender Owned, Foreclosure and Short Sale Properties.

LENDER OWNED PROPERTY LISTINGS - ALL

LENDER OWNED PROPERTY LISTINGS - NEW - no new listings this week

FORECLOSURE PROPERTY LISTINGS - ALL

FORECLOSURE PROPERTY LISTINGS - NEW - no new listings this week

SHORT SALE PROPERTY LISTINGS - ALL

SHORT SALES $0 - 200,000

SHORT SALES $200,000 - 400,000

SHORT SALES $400,000 AND OVER

SHORT SALE PROPERTY LISTINGS - NEW

If you or anyone you know is thinking about buying or selling a condo in Honolulu, Hawaii, it would be our pleasure to help.

Team Douglas/Christopher

For a webpage view of this newsletter, Click here

 Access the Newsletter Archive for back issues.

Ko'olani Condo in Ala Moana - Another Great Condo Listing

Great New Condo Building, Wonderful Location, Amazing Views!

Ko'olani Unit #4209

The BEST floor plan on the cool side of the building. Spacious living area and dining area. Upgraded with laminated wood floors and lowered counter top. Better than new. Shows pride of ownership. Top of the line appliances. Granite counter tops, marble floors. Beautiful views of mountain & ocean. Great amenities like pool, whirlpool, six BBQ areas, putting green, two tennis courts, dog park, business center with a conference room, media room, large and small party rooms, billiard room and 24 hour fitness center. Most desired location, across from Beach park, surfing, Ward Center. Walking distance to theatres, malls, bookstore & restaurants.
Listed at $998,000 (Fee Simple)

Listed at $998,000 (FS)

See More Photos of Ko'olani, Ala Moana

For Ko'olani Building Details and more Ko'olani Current Listings please visit our website at www.HNLCondos.com.

Ala Moana Beach Park, Magic Island - Honolulu City By Night

Ala Moana Beach Park is one of my favorite places as it is a very quick and easy escape, llocated just a couple of blocks from where I livein West Waikiki.

I had the most wonderful night with a friend. When I finsihed work, I had a great idea and called a good friend. I suggested that we bring a bottle of wine, pick up some food at Ala Moana Shopping Center and cross the street to watch the sunset go down from Magic Island at Ala Moana Beach Park. My timing couldn’t have been more perfect.

I rushed home, took a quick shower and changed my clothes. My friend had already gotten off of work and was ready to go. Unfortunately by the time we got out the front door it was 6:20 p.m. We knew we would miss the sunset entirely. The sun sets around 7:00 p.m. and we still needed to pick up food from Shirokiya. We continued with our plan anyways. We could still catch the dying light. Even after the sun has set the sky is still beautiful and alive with shades of red, orange and yellows.

We pick up food at Shirokiya from Ala Moana Shopping Center because they have Japanese bento style foods that we both like. We took the bentos to go. We were both hungry and excited to start eating. We bought stir fried lotus root, tako balls with benito shavings, seaweed and kabocha squash. We were trying to find a small tray of simple mochi for dessert but we couldn’t find any. We did find sweet potato dumplings instead. They were so delicious. We had a really good light but flavorful pinot noir that I had brought back with me to go with it all.

We parked our car and walked into Magic Island, a section of Ala Moana Beach Park. We wanted to sit on one of the benches that face out to the ocean towards the sunset but we ended up sitting at the first bench that we saw. It was angled mainly facing the city instead of out into the ocean. It was fine with us. The other benches looked occupied already. We opened up our bentos, placed them between us, uncorked the wine and filled our glasses.

Magic Island is such a great place to be at this time. It’s not completely isolated where we were the only ones there. A few families were still sitting at their picnic areas enjoying each other’s company. We saw couples and friends sitting at the tables. Fishermen were on the rock wall with their lines and lanterns. We saw one person on the shore with a light. I assumed he was trying to catch bait fish.

Though we missed the sunset we still enjoyed a great view of the city and the night lights coming on. It was a most beautiful evening. We sat on the bench eating the most delicious foods and drinking a great glass of red wine. Watching the day light fade away and seeing the city lights brighten was a nice experience. Ala Moana Shopping Center shining below and above the tree line of Ala Moana Park was a most interesting site.

As we ate I explained the group of lights that we saw in the distance crawling up the side of the mountain slope as being Pearl City. Then looking at the city buildings I told him what I knew about them.  At least I knew which building was which when we looked at them before it got too dark to distinguish them at night. We discussed which building we liked better. When we finished with our dinner, we lingered on to enjoy the city skyline.

While we sat there we had a nice surprise. I was looking at the city enjoying my wine when I noticed that everything got a little brighter. I looked around thinking that it was a car. Then I noticed our faint shadow on the ground. It turned out to be the moon. It was a little more than half full and it was so bright that it cast our shadows in front of us. It was a beautiful evening with great company, good food, good wine and a terrific view. We walked back to the car feeling extremely satisfied.