June 2009 compared to 2008 Kauai Condos saw a decrease in volume of sale of 37.5% and a decrease in the median price range of 46%

Information on May sales on the island of Kauai was provided by Russell Tucker

“Maui investors and first-time home buyers, are now in the right place, at the right time.”

In the eleven years I’ve spent on Maui, I’ve seen the real estate market climb, fall, hold steady, rise to unrealistic heights and now – we’re nearly at the bottom of the latest trend. What lessons have I learned from Maui’s real estate market? I know that finding the right realtor, an experienced realtor, one who knows the local market and can help find the property with the best value is your key to obtaining a great investment.

I feel that we are near the bottom of the Maui real estate market. There are some incredible deals out there. I haven’t seen prices this low since 1999/2000. That was right after the Japanese yen declined. Many Japanese buyers pulled out of the Hawaii real estate market causing a minor bubble burst. I sold many homes during that era that came completely furnished, top-to-bottom with, not only furniture but golf clubs, silverware and computer/fax office equipment. Some homes even came with a car as part of the package! All included in the purchase price.

As a former engineer, I’m a numbers guy. Interest rate fluctuations and unemployment rates have traditionally been the markers of a real estate rise and fall. Here on Maui we’re experiencing low home prices – not from high interest rates (they’re low!), but from unemployment and de-valued foreclosed homes and condos.

I’m not just referring to properties where the owner has foreclosed and is now priced low in pre-foreclosure or bank-owned situation. There are some great deals on foreclosures but that is not, believe it or not, where some of the best buys are! Sellers who own their properties outright, who have never been in trouble with their mortgage, are now forced to under-value their homes just because similar homes in their neighborhoods sold low at foreclosure.

This is the domino effect that foreclosed homes have in neighborhoods where sellers are not in danger of a foreclosure. A home value is determined by a true value from an appraisal. When a foreclosed home closes in a neighborhood, it de-values all the surrounding homes in that neighborhood. For instance, if Joe paid $600,000 for his home 5 years ago, and Bill buys a foreclosed home in Bill’s neighborhood at $400,000, now Joe is forced to sell his home significantly lower than he had planned.

At this time there is no way to change this process. That’s why I work to help both sellers and buyers understand the numbers in this real estate market so that we may all come to a more realistic figure. In short, it’s not a great time to put your home up for sale (unless it’s priced right!). It is, however, a wonderful time to buy. First-time home buyers and investors on Maui are now in the right place, at the right time.

By Gary Bland, Maui Realtor, R(S)

The condo sales were not as good as the home sales.  The number of condo sales dropped by 17.5% in June of 2009 compared to June of 2008. The prices were down 5.3% compared to last June. Not as big a drecrease as single family homes.

FHA is a loan program that has been around since the 1930’s but had fallen out of favor. Now however it has become the loan of choice with many advantages versus conventional loans. What are the advantages of an FHA loan?

• FHA requires only 3.5% down payment
• Unlike conventional loans, the entire down payment may come from a family gift. Family members can help the buyer qualify too.
• Your FICO credit score has a minimal impact on qualification
• The FHA interest rates are very competitive versus conventional financing
• FHA approvals are easier to get
• The loan limits are very high … In Hawaii, FHA loans can be as high as $793,750!
• No prepayment penalties
• FHA loans are assumable

FHA loans may be obtained through FHA approved banks, mortgage companies, and mortgage brokers. Contact Alan Fentriss with Platinum Mortgage Partners at 808-927-3401. I’d be happy to help you with the loan to fit your needs, whether it’s FHA, VA, or Conventional financing.

Condos were down nearly 38% for sales volume and down about 33% in median price for May ’09 vs. May ‘08.  Although the numbers are down, it actually indicates a slight improvement when compared to the YTD sales volume for May ‘09 to May ‘08, which is down 56%.  This may be a signal that buyers are making purchases with the low prices and continued low interest rates.

Focusing on Single Family Homes for the Kona/Kohala Coast, there are currently 631 active listings for sale, 99 homes in escrow and 41 sold homes during the past month.  At the present buying rate, we have a 15 month supply of homes. For Kona/Kohala Coast Condo, there are currently 690 on the market for sale, 54 in escrow and 21 sold in the past month.  That’s about a 33 month supply of condos.

Information on May sales for the Big Island of Hawaii was provided by Kurt & Kirsten Carlson, Big Island real estate experts.

If you are actively searching for a property and have graduated out of the “Looky Lou browsing stage” working directly with an agent is a must. Most buyers do not realize the great importance and value and not to mention the countless hours of your time that can be saved by utilizing an agent’s knowledge.

Most buyers know what they want in a property, but sometimes there are unknowns about a property or the surrounding area that might not be contained within the information given for that particular listing that might change your mind on making that purchase. To get down to the point of it all, there are so many variable when searching for a property it is always best to speak to an agent for assistance.

Here are some key points that might be over looked if you have not utilized an agent.

Homes

• What type of condition are the surrounding homes in
• Are vacation rental allowed in this location?
• There might be a perfect property listed higher in price just out of your price search but the seller is very motivated and might accept an offer that falls in your price range.
• Do the pictures do this property justice? Sometimes pictures can mirror imperfections and make a property that needs a remodel look very livable.
•  “What Climate do you prefer” Hawaii has many micro-climates that vary from very rainy to very dry areas.
• Is this a short sale property, some short sales never get approved by the lenders and are not currently eligible for a purchase.
• There might be a property that is a perfect match and available but is not listed on the MLS or is temporarily off the market.
• Are there swimming beaches nearby?
• Is this the best property for my needs?

Condos

• What are the Maintenance fees?
• Are the maintenance fees for the condo association about to increase a large percentage for any work needed?
• Are vacation rentals allowed in this location?
• Does this come furnished?
• Is this the best property for my needs?

By Russull Tucker – Kauai Specialist

Condo Unit Sales declined (-50%), average sold price = $661,369 (-31%), median price = $412,000 (-28%).  Avg Days on Market for Sold Condos: 111

Information on May sales on the island of Maui was provided by Gary Bland a Maui real estate expert.

The decline in property prices have made it hard for home owners to refinance or sell their homes. The Hawaiian Islands now have the 15th highest foreclosure rate in the nation with 1 in every 621 households. Hawaii is still no where near the highest states like Nevada, California or Florida.

It is definitely looking a lot more attractive if you are looking to buy a home or making an investment here in the Hawaiian Islands. You can search for all the bank owned foreclosures in Hawaii on our website and sign up to get new listings emailed as they become available. Feel free to contact us if you would like to know about what opportunities are available on all the islands.

Condos were down about 31% for sales volume and about 45% in median price for May, but the condo market median price can be easily misunderstood by an increase in sales volume for the lower end condo sale with no sales in the upper end vacation rental market.

Information on May sales on the island of Kauai was provided by Russell Tucker a Kauai real estate expert.

The interest rates have creeped back up from the lows and lenders have tighted their lending guidlines including requiring a higher credit score (FICO). The interest rates are still near historic lows and with the drop in prices there are definately some great deals to be picked up.