Mixed signals seen in May Big Island, Kauai home sales

While purchases showed a spike, median prices fell on both islands

By Allison Schaefers

POSTED: 01:30 a.m. HST, Jun 08, 2010

Big Island and Kauai home sales posted double-digit increases in May. However, median prices fell on both islands, leading real estate watchers to conclude that these markets are still short of recovery.

Single-family home sales on the Big Island increased 25.5 percent to 128 houses last month, and condominium sales rose 71 percent to 53 units, according to data released yesterday by the Hawaii Information Service. Still, more than half of Big Island single-family home buyers in May paid at least $279,500, which represented a 7 percent decrease from the year-ago $300,500. The median price paid for a condominium also dropped about 7.8 percent to $285,000 from the year-ago $309,000.

May single-family home sales on Kauai rose 80 percent to 27 houses from the year-ago 15. Condominium sales climbed last month by 38.5 percent to 18 units from the 13 recorded in May of 2009. The median price paid for a single-family home on Kauai in May dropped 30 percent to $420,000 from the year-prior $600,000. The median price of a Kauai condominium dropped by 50.3 percent to $164,000 from $330,000 in May 2009.

Compared with a dismal last year, the statistics tell an overly optimistic tale, said Phil Fudge, the principal broker at Kapaa-based Kauai Landmark Realty.

"Last year was really terrible, so a little increase makes it look really big," Fudge said.

That said, buyers continued to benefit from low prices and interest rates on the Big Island and Kauai in May. Sellers made faster sales than they had previously. However, many still had to make price or other concessions, said Val Pilaria, principal broker at Aloha Kauai Properties.

"They have to compete with distressed sales," Pilaria said.

The volume of distressed properties also brought out the bargain hunters, said Howard Dinits, a Realtor with Kihei-based RE/MAX Resort Realty who specializes in Big Island and Maui residential real estate.

"Deals have kept the sales momentum high even after the expiration of the federal tax credits," Dinits said.

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Big Island and Kauai home sales posted double-digit increases in May. However, median prices fell on both islands, leading real estate watchers to conclude that these markets are still short of recovery.

Single-family home sales on the Big Island increased 25.5 percent to 128 houses last month, and condominium sales rose 71 percent to 53 units, according to data released yesterday by the Hawaii Information Service. Still, more than half of Big Island single-family home buyers in May paid at least $279,500, which represented a 7 percent decrease from the year-ago $300,500. The median price paid for a condominium also dropped about 7.8 percent to $285,000 from the year-ago $309,000.

May single-family home sales on Kauai rose 80 percent to 27 houses from the year-ago 15. Condominium sales climbed last month by 38.5 percent to 18 units from the 13 recorded in May of 2009. The median price paid for a single-family home on Kauai in May dropped 30 percent to $420,000 from the year-prior $600,000. The median price of a Kauai condominium dropped by 50.3 percent to $164,000 from $330,000 in May 2009.

Compared with a dismal last year, the statistics tell an overly optimistic tale, said Phil Fudge, the principal broker at Kapaa-based Kauai Landmark Realty.

"Last year was really terrible, so a little increase makes it look really big," Fudge said.

That said, buyers continued to benefit from low prices and interest rates on the Big Island and Kauai in May. Sellers made faster sales than they had previously. However, many still had to make price or other concessions, said Val Pilaria, principal broker at Aloha Kauai Properties.

"They have to compete with distressed sales," Pilaria said.

The volume of distressed properties also brought out the bargain hunters, said Howard Dinits, a Realtor with Kihei-based RE/MAX Resort Realty who specializes in Big Island and Maui residential real estate.

"Deals have kept the sales momentum high even after the expiration of the federal tax credits," Dinits said. http://www.BigIslandRealEstate.com and http://www.EasyMauiRealEstate.com

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Hawaii foreclosures soar

The rate surges 115 percent, with Maui and the Big Island seeing huge increases and Oahu faring much better

By Gene Park

POSTED: 01:30 a.m. HST, May 13, 2010

Oahu remained well below the national rate of foreclosures in April, but the Big Island and Maui markets took large hits.

There were 1,474 Hawaii properties that received foreclosure notices last month, according to RealtyTrac, an online foreclosure marketplace.

That was a 115.5 percent increase over April 2009 foreclosure numbers.

Hawaii's April foreclosures, which equated to one in every 348 households, added up to a higher rate than the national rate of foreclosures, which was one in every 387.

Oahu fared the best, with one in every 580 homes. But Maui and the Big Island saw a high rate, with one in every 187 and one in every 179 homes, respectively. There was one foreclosure in every 313 homes on Kauai.

"I think we're just gonna see more inventory hitting every day," said Big Island and Maui Realtor Howard Dinits. "The foreclosure process takes a long time in Hawaii."

Nationwide the number of homes facing foreclosure fell 2.4 percent from a year ago in April. James Saccacio, chief executive officer of RealtyTrac, said the April national numbers indicate a plateau in foreclosures, but "at a very high level that will not drop off in the near future."

The number of borrowers losing their homes is still rising. Banks seized a record 92,000 homes last month.

And there are millions more potential foreclosures ahead. Nearly 7.4 million borrowers, or 12 percent of all households with a mortgage, had missed at least one month of payments or were in foreclosure as of March, according to Lender Processing Services Inc., a mortgage data research firm.

As the economy turns around, "you will see an improvement in housing markets and in foreclosure activity," said Rick Sharga, a RealtyTrac senior vice president. "The problem is that there's such a backlog right now."

Among states, Nevada posted the highest foreclosure rate in April, with one in every 69 households receiving a foreclosure notice.

Foreclosures there were up 10 percent from March, but virtually unchanged from a year earlier. Next on the list were Arizona, Florida, California and Michigan.

Hawaii landed in 11th place. The top five neighborhoods in the state with the most foreclosures were Kailua-Kona, Kihei, Ewa Beach, Lahaina and Waikoloa.

Dinits said Waikoloa and Kihei foreclosures are due to a large number of owners who own second homes.

"It's an investment for them," Dinits said. "That's the real reason for the high numbers in those areas.

"If you gotta make a choice between your house or your vacation house, you're gonna keep your house."

Dinits said he is currently working on a foreclosure at an Ewa Beach home. He said the military community there might be experiencing transfers, routine changes in duty stations.

But David Kucic, a Realtor who specializes in Ewa Beach sales, said many of the Ewa Beach homes might be short sales, where sale prices are lower than the balance owed on the property's loan, being counted as foreclosures.

"It's not like you have 89 foreclosures," Kucic said, referring to RealtyTrac's statistics on Ewa Beach. "A property would actively be trying to sell as a short sale, but it will get reported as a foreclosure."

Kucic said he is seeing a lot of activity in Ewa Beach, a sharp contrast to last year's slow market.

"Last year, you could find a property no problem," Kucic said. "But the competition is stiff right now.

"Even though the first-time homebuyer's tax credit is gone, there are still a lot of buyers looking for properties."

OUT OF THE HOUSE

Kailua-Kona had the most foreclosures in April, according to RealtyTrac, an online foreclosure marketplace. Below are the state's foreclosure hot spots last month:

Source: RealtyTrac

NO PLACE TO CALL HOME

Hawaii's monthly foreclosures over the past year, including the year-over-year percentage gain:

Source: RealtyTrac

See Howard Dinits and his new listing in Keaau Hawaii 96749. Paradise Ala kai Hawaiian Paradise Park Howard Dinits Big Island Real Estate Agent

Top selling Big Island Realtor in Hawaii uses video and www.youtube.com to market Real Estate on the Big Island.

Marketing the YouTube way

Island businesses say the online sensation is cost-effective and works

By Gene Park

POSTED: 01:30 a.m. HST, Feb 21, 2010

About two years ago a local woman did a YouTube search for "Hawaiian," as she was curious about what would pop up.

She ended up watching a video tour from Big Island Realtor Howard Dinits on a property he was selling at Hawaiian Shores in Pahoa. She grabbed her husband and went to see the house.

"Without ever calling me," Dinits said, recalling the sale. "It was the only house they looked at, and they eventually got it. That's what opened my eyes."

It's not like Dinits isn't Internet-savvy. Earlier in his life he sold glass art through his Web site. He was just surprised at how a random search for something unrelated led to business for him.

Local businesses large and small are betting on YouTube's purveyance, as well as the permanence of its presence, to strengthen their marketing arm.

It's a cheap bet, since the outlet is free. Its cost-effectiveness is one reason why the Hawaii Medical Service Association canceled its "HMSA Now" channel on digital cable last year.

"But not everybody has digital cable; it's not available in all areas," said HMSA spokeswoman Laura Lott. "Then we thought, Where do we go? When we want to look something up or have a health question, we go to the Web."

The channel offers health advice and information on insurance policies, as well as archived commercial spots. Lott said turnaround for producing videos has become easier since the company is able to upload on its own time.

"It's a simpler, shorter work flow and more cost-effective," she said.

For Dinits it was a small investment that has gone a long way. He's bought a camera that can shoot in high definition, with solar-charged batteries. "What's that investment there? Like $200?"

Dinits' video channel features footage of him giving virtual tours of properties he sells. Sometimes the channel more closely resembles a vlog, or video blog, with many personal asides, or footage of musicians he enjoys. Most times he visits the neighborhood of the property he is selling, visiting nearby shopping centers and attractions.

"They get to know me, they get to know the real estate, they get to know the area," Dinits said. "It's a way of people to get to know who they're doing business with."

Dinits said he no longer advertises in traditional media, outside of one local real estate guide.

"With the old way of giving information, you made the consumer call you, and that's how you got your lead," Dinits said. "I say give them everything. Give them all the information, show them the map, show them the Google locations. They'll call you because you're the one who gave them all that information."

Luxury real estate company Kahala Associates launched its YouTube channel earlier this month. The channel is regularly updated within a day or two of a new listing. The videos are also tagged with keywords so they would show up on search engines.

"It's pushed distribution of our listings in a huge, powerful way," said Chuck Garrett, Kahala Associates' business development director.

The firm hired a video vendor in Wisconsin to put together presentations for online. That way Kahala's 25 associates didn't need to waste time training to develop voice acting or film skills.

"We haven't had to become experts in how to make YouTube videos, because we're busy selling houses," he said. "We don't have to write the script, we don't have to buy a video camera."

The only initial hiccup of the outsourcing was mispronunciations of certain properties. But that problem was solved by using Forvo.com, an audio pronunciation guide to which people can contribute clips.

"'Kaaawa' was a tough one for them," Garrett said.

The firm still does print ads, trying to be "much leaner and smarter" in its advertising costs.

Farmers Insurance Hawaii, formerly AIG, still saturates traditional media with advertising with its popular commercials. The ads' popularity was part of the reason why the insurer started its own YouTube channel in 2007.

"Especially the one with the mailbox, and the argument, and the grandparents, some of the older ones," said Farmers e-marketing manager John Tapper. "People still talk about them, and asked to be able to see them."

Although the insurer started a new channel under its changed name, it decided to keep its AIG YouTube account active as an archive for its older commercial spots. Both channels have grown to highlight its community service work, including food drives, and the firm's TV spots for traffic safety.

"We're able to improve engagement and build trust," Tapper said. "It's an easy medium for people to look at that's nonthreatening, and be able to say we're part of the community."

Farmers spokeswoman Wenli Lin said the channel only informs the company's larger social media platform, being able to refer to videos on its Twitter and Facebook accounts.

"And it's the way things are going to be," she said.

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http://www.EasyMauiRealEstate.com

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Home, condo sales up on Kauai and Big Island

By Allison Schaefers

POSTED: 01:30 a.m. HST, Feb 06, 2010

Sales of single-family homes and condominiums on Kauai and the Big Island posted triple and double-digit increases last month as buyers pursued bargains.

Prices were mostly lower.

While Oahu's housing market experienced a double-digit rise in single-family home sales and the median price last month, the neighbor islands still have farther to go, said Howard Dinits, a Realtor with RE/MAX Resort Realty in Waimea whose specialty is Maui and the Big Island.

"Oahu has already stabilized, but the outer islands still have no jobs and that hurts," he said. "Furlough Fridays have hurt, too."

In January, 31 single-family homes changed hands on Kauai, which represented a 210 percent increase from the prior year's sales. Likewise, condominium sales doubled to 14, a 100 percent rise last month.

Despite the run-up in Kauai sales, home prices continued to drop last month. More than half of the Kauai buyers in January paid at least $375,000 for a house, which represented a nearly 20 percent decline. Likewise, the median price paid for a Kauai condominium fell 19.5 percent to $204,500.

More Canadians than ever are looking for Kauai properties, said Phil Fudge, principal broker at Kapaa-based Kauai Landmark Realty.

"We had about five Canadian buyers come through in the last month," Fudge said. "Their economy isn't as sluggish as ours, and their dollar is in a good position."

It was a similar story on the Big Island, which saw single-family home sales increase nearly 69 percent to 86 and condominium sales rise nearly 63 percent to 26.

The median price paid for a single-family home on the Big Island fell about 9 percent to $239,250; however, the median condominium price increased about 21 percent to $245,000.

Bargain hunters from Oahu, Alaska, the U.S. West Coast and Canada are eyeing the neighbor islands, Dinits said.

"They like the low prices and the chance to get away from the cold," he said.

Local buyers also are capitalizing on low prices, favorable interest rates and the tax credits that are available to qualifying first-time buyers and owner-occupants, he said.

"Our volume is up. I've closed nine sales on the Big Island and Maui this year," Dinits said. "But I wouldn't say that prices are appreciating yet."

Big Island buyers are getting more serious, said Paula Beamer, a Realtor with Clark Realty's Waimea office.

"Some of them feel we are at the bottom," she said. "Getting a loan is a little tricky, but if you can get one, some of the prices are back to 2004 levels."

There are plenty of lookers in Kauai's market but fewer investor-buyers, Fudge said. "Our tourism has been down, and they want to see potential renters," he said.

http://www.BigIslandRealEstate.com

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Home sales on Big Island and Kauai rose in October

Falling prices and homebuyer credits draw bargain hunters locally and abroad

By Allison Schaefers

POSTED: 01:30 a.m. HST, Nov 06, 2009

Home sales picked up on the Big Island and Kauai in October, according to a recent report from Hawaii Information Service.

Single-family home sales rose 48 percent on the Big Island and 39 percent on Kauai, said the report, which was released yesterday. Likewise, condominium sales rose about 21 percent on the Big Island and nearly 78 percent on Kauai; however, the percentages are somewhat skewed by the small size of these markets.

"I had three closings in one day in October," said Howard Dinits, a Realtor with RE/MAX Resort Realty in Wailea, who specializes in Big Island and Maui sales. "I haven't seen activity like that for three years."

Dinits said sales are up because prices have fallen.

"I recently sold a 1,270-square-foot home for $130,000 in Hawaiian Shores Recreation Estates on the Big Island," he said. "The same house would have sold for $265,000 in 2005."

Dinits said bargain hunters are coming from Oahu and Maui, California, Oregon, Alaska and Canada.

The $8,000 first-time homebuyer credit, combined with the price drop, also has lured buyers who could not afford to participate during the last cycle, he said.

"There are houses selling for $70,000," Dinits said.

The median price paid for a single-family home fell 13 percent on Kauai to $446,500 and nearly 6 percent to $282,500 on the Big Island. But while the median condominium price rose 26 percent to $357,000 on the Big Island, Kauai's median condominium price fell 24 percent to $395,000.

Home sales picked up on the Big Island and Kauai in October, according to a recent report from Hawaii Information Service.

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Single-family home sales rose 48 percent on the Big Island and 39 percent on Kauai, said the report, which was released yesterday. Likewise, condominium sales rose about 21 percent on the Big Island and nearly 78 percent on Kauai; however, the percentages are somewhat skewed by the small size of these markets.

"I had three closings in one day in October," said Howard Dinits, a Realtor with RE/MAX Resort Realty in Wailea, who specializes in Big Island and Maui sales. "I haven't seen activity like that for three years."

Dinits said sales are up because prices have fallen.

"I recently sold a 1,270-square-foot home for $130,000 in Hawaiian Shores Recreation Estates on the Big Island," he said. "The same house would have sold for $265,000 in 2005."

Dinits said bargain hunters are coming from Oahu and Maui, California, Oregon, Alaska and Canada.

The $8,000 first-time homebuyer credit, combined with the price drop, also has lured buyers who could not afford to participate during the last cycle, he said.

"There are houses selling for $70,000," Dinits said.

The median price paid for a single-family home fell 13 percent on Kauai to $446,500 and nearly 6 percent to $282,500 on the Big Island. But while the median condominium price rose 26 percent to $357,000 on the Big Island, Kauai's median condominium price fell 24 percent to $395,000.

Home sales on Big Island and Kauai rose in October

http://www.bigislandrealestate.com

Obama Signs Homebuyer Tax Credit Expansion Into Law
President Obama today signed legislation to extend and expand the $8,000 first-time homebuyer tax credit that had been set to expire at the end of the month. These tax credit changes are included in the Worker, Homeownership and Business Assistance Act of 2009, which also extends unemployment benefits to people who have been jobless for more than one year.

The new legislation extends the deadline for the first-time homebuyer tax credit to include home purchase contracts entered into by April 30, 2010 and closed by June 30, 2010. The tax credit was also expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence — if they have lived in their current residence for at least five consecutive years of the past eight years.

Homebuyers looking to take advantage of either tax credit are subject to income eligibility limits of $125,000 for individuals and $225,000 for married couples, up from the limits of $75,000 and $150,000 included in the previous law. The home purchased must cost less than $800,000 to qualify the homebuyer for the tax credit. And to help guard against fraud, buyers are required to attach documentation of the home purchase to their tax return.

After signing the bill into law this morning, President Obama said "the rebound in the housing market was one of the big factors that contributed to the growth of the economy last quarter, and brought hundreds of thousands of families into the housing market. We want to give even more families the chance to own their own home."

NAR economists estimate that the current tax credit has contributed approximately $22 billion to the general economy, and that approximately 2 million people will take advantage of the tax credit this year.