by Denise S Nakanishi, R, CRS, ABR, GRI

It was one of those moments in time that you just don’t forget. My friend ditched me to go to the beach with her boyfriend but I always thought I got the better deal. Improvements in our housing market certainly don’t rise to the level of an unforgettable moment but at the same time Neil Armstrong’s “one small step, one giant leap” quote seems somehow fitting among all the negatives.   After all, even baby steps are giant steps these days.  While the national media seems focused on price deflations, there are, in my mind, more important numbers to consider in determining market condition and future direction.  Median prices have fallen but still exceed those 6 years back.  More importantly, many areas are experiencing a pattern of inventory decline that may signal a leveling of the market.  REALTORS® in East Hawaii have been extremely busy over the past few months.  We are once again experiencing multiple (often cash) offers on well-valued properties.   Let’s take a look at a snapshot of market activity over the 2nd quarter.  In April, HPP had 147 homes actively on the market.  There are now 140.  Ainaloa had 51; there are now 41.  Leilani saw a net increase of 1 listing but inventory is moving.  Hilo inventory increased 10% but at the same time the number of properties under contract increased by over 33% (from 29 to 41).  The Volcano area continues to be very slow.  Vacant land sales are happening but inventory levels remain high.  Here’s a bit more detail courtesy of my friends at Hawaii Information Service:

As always, for more information, visit www.majormom.com. 

BIG ISLAND REAL ESTATE BLOG UPDATE COMING 7/6/09

2009 Market update   by Rose Delfin

2009 is quickly moving forward.  Wow, where does the time go.  With a constantly changing mortgage market and some of the best interest rates we’ve seen in awhile and a phenomenal $8000 first time buyer tax credit, activity has increased.  Looking at a few of our Big Island regions, the residential market is showing some activity. 

The Puna region of the Big Island had 34 residential sales in April, compared to 37 in 2008.  The median price though was $165,640 versus $260,000 in 2008.  In May that same area had 32 sales to 35 in 2008 and a median price of $200,000 versus $207,000. 

South Hilo had 12 home sales in April versus 14 in 2008 at a median sales price of $202,000 versus $357,500.  In May we saw strong sales of 19 versus 15 in 2008 with a median price of $262,500 versus $339,000. 

North Hilo had no sales in April versus 1 in April of 2008, where that median price was $265,000.  But May had 1 sale in 2009 with none in that same time period in 2008 where the median sales price was $365,000.

The Hamakua Region remained pretty constant with 1 sale in April of both 2008 and 2009.  The median sales price in 2009 was $1,180,000 whereas 2008 was $400,000.  Then in May we had 2 residential sales each year, where the median in 2009 was $355,300 and in 2008 was $494,000. 

Lastly the Ka’u region had 9 sales in April of 2009 versus 7 in 2008.  The median price in 2009 was $150,000 and in 2008 was $197,000.  Then in May of both years we had 5 sales with a median this year of $140,000 versus $225,000 in 2008.

Looking at these numbers we can see they are all over the board.  But, there is activity and the numbers are strong.  Consumer confidence is improving and as inventory goes down the lower priced deals will start disappearing too.  Above stats are only for residential sales so for land sales specific to any region just give me a call.  I look forward to updating you in a couple of months as we continue our changing market. 

Mahalo,

Rose Delfin

2009 Market update YTD  by Rose Delfin

Well 2008 is finally behind us.  What a year that was.  I’ve mentioned that I anticipated that 2009 will be a year of change and so far it is not proving me wrong.  As always to understand the Big Island, you need to look at the specific areas you are interested in.  Entire Island stats just don’t give a good snapshot of what is happening in our diversified market.  So, in January of this year the Puna Region of the Big Island had 25 residential sales with a median sales price of $216K.  Compare this to last year where we had 39 residential sales with a median sales price of $235K.  In this same area February had 30 residential sales with a median sales price of $157,085, compared to 2008 where we also had 30 residential sales with a median sales price of $205K.  Lastly March in Puna has so far had 24 residential sales with a median sales price of $172,625 compared to 2008 where we had 31 residential sales with a median price of $237,500.  Phew, what a roller coaster.  Looking at other areas of the island the South Hilo Market had 5 residential sales in January at $257,500 compared to 10 at $262,500 in 2008.  February had 12 residential sales at $287,500 compared to 12 in 2008 at $355,000. Then March has so far had 7 residential sales at $395K compared to March 2008 with 13 at $349K.  In the Hamakua area we had 1 residential sale in January of 2009 at $383,500 compared to 0 in 2008.  February had 2 residential sales in 2009 at a median price of $547,500 versus 0 in 2008.  March so far has had 2 residential sales at a median price of $225,000 compared to 4 in 2008 at a median price of $490K.  The North Kona area saw 7 residential sales in January at $381K compared to 20 in 2008 at $585K.  February had 14 residential sales at $409,500 compared to 22 in 2008 at $575K.  March has had so far 11 residential sales at $417,500 compared to 2008 with 27 at $535K.  Lastly the Ka’u region of the Big Island has had 3 residential sales in 2009 at a median price of $187,937 compared to 9 in January of 2008 at $255K.  February had 7 residential sales at a median price of $149,900 compared to 7 in 2008 at $160K.  March has so far had 1 residential sale at a median price of $180K, whereas 2008 had 5 residential sales at $195K.  For land sales specific to any region just give me a call.  I look forward to updating you in a couple of months as we continue our changing market. 

Mahalo,

Rose Delfin

Holiday “Hangover”

by Denise S Nakanishi, R

Are your credit cards tired, overworked and underpaid?  Do you suffer from extreme mailbox avoidance syndrome?  Indeed, it sounds like a typical case of holiday hangover!  It’s a common malady associated with the reality of “shop ‘til you drop” overspending resulting from hard-to-resist holiday generosity.  Problem is, many look for temporary relief by delaying the largest bill they have; their mortgage payment.  Because it’s normally the biggest, it’s also the hardest to catch up.  It’s important to be forthcoming with your lender when situations get out-of-hand.  While collectors are normally overly-aggressive (many get paid for each payment they collect), keep in mind that the lender wants to be sure you do not default. Tell the Collector you want to speak Loss Mitigation Department.  They assist borrowers in restructuring debt which helps reduce default rates thereby keeping their losses to a minimum.  Working with them early on insures the largest menu of options is available.  Choices could include a rate reduction which actually reduces your interest rate for the remainder of the mortgage, recasting the payments by re-computing payments to include any delinquency, extending the term of the loan  allowing delinquent payments to be paid at the end, converting the type loan in order to reduce payments or allowing a one time assumption of an otherwise non-assumable loan.  Your willingness to cooperate coupled with your individual circumstance will largely dictate your choices.  If the situation seems hopeless, options such as a deed-in-lieu of foreclosure, a pre-foreclosure sale or a short-sale could be explored. A deed-in-lieu allows your interest in the property to revert to the lender.  The property can be sold avoiding an expensive, time-consuming foreclosure proceeding.  You may even be able to stay in the home if you list the property as part of a pre-foreclosure sale.  When you owe more than the property is worth, the lender may actually forgive part of the debt allowing a “short”-sale to proceed.  Remember, any debt forgiven on other than a principal residence, whether in a short-sale or foreclosure may be reported to the IRS as income. Also, keep in mind that a recently passed Hawaii law severely limits assistance REALTORS® are able to provide with distressed properties.  The above is simply general information and may not apply in your situation.  But, by all means, if you find yourself suffering from a Holiday Hangover, take two aspirin and call the Lender in the morning.  It may be just what the Mortgage Doctor ordered!

Hamakua Market Update

                       by Rose Delfin

The Hamakua coast lies on the Northeast coast of the Big Island of Hawaii and is approximately fifty miles long running from Hilo to the Waipio Valley. This region began under the influence of Sugar Cane. Sugar cane operated here from around the turn of the twentieth century until approximately 1990. Many little towns sprang up around the sugar cane industry, with modest land parcels where the workers lived and built their homes. However, much of the Hamakua region remains large land parcels where the actual sugar cane was grown and cultivated.
Understanding a little bit about the area, makes the market update more understandable. Currently there are only 48 active homes for sale and 40 land listings in this area. The year started out slow with no sales in either homes or land in January. February continued the trend, while March had four residences close with an average sales price of $485K and three land parcels with an average sales price of $800K. April saw one home sell at $400K and May two homes at $494K and one lot at $265K. June saw a slight residential decline in price with six homes selling at $397K and two lots at $380K. July rolled around and four homes sold at $307K and three lots at $282,200. August had no sales while September saw one home sell at $1,275,000 and one lot at $260K. October had two land sales with an average price of $246,875K and November had no sales in this region.
Having said all this, and looking at the numbers there was a decrease in average home price from the start of the year to the later months. But, the Hamakua region is diverse. Remember we have the smaller sugar cane camp town area and the larger land acreages. So, looking at the market update, you really need to analyze it further. If you are interested in this wonderful area of the island, have a Realtor break down the sales into parcel size, age of home, location. The numbers are but a snapshot in time, ask your Realtor to use the zoom enhancement and tell you what they mean.
Wishing you and your family a joyous Holiday season, from your Prudential family on the Big Island..

You can email Rose at Rose@HawaiiRose.com