Dianne Shares Great News about Bill 7

The first affordable residential rental project that takes advantage of the opportunities provided by Bill 7 has been approved and is under construction. A property in Liliha that was previously a neighborhood eyesore (according to the developer) is being transformed into a 25 unit walk-up rental complex, where some of the rents will be as low as $1100/mo. It's the first re-development project to take advantage of Bill 7, which provides property tax incentives to developers to encourage the development of more rental apartments local families can afford.

Bill 7 provides many incentives to developers who work with qualifying properties:

• Building permit and waste water collection fees are waived.
• The new buildings can be much larger than current zoning allows.
• On site parking is optional.

The city says it's a "win win" situation for developers and the community. Bill 7 projects can provide a reasonable return on the developer's investment and the community gets much needed rental housing at prices local residents can afford. Construction on the first Bill 7 project is expected to be completed by next summer. 

Everyone hopes this is just the first of many similar rental developments which will come on the market as a result of opportunities offered by Bill 7. If you have questions about what Bill 7 could do for your property or you'd like to talk to us about anything related to real estate, please get in touch. We'd love to hear from you. Aloha!

Single Family Home Neighborhood Update

Moanalua-Salt Lake had the largest increase in both numbers of sales and median sales price. For reason, that little segment of the island just inland of Honolulu International Airport (with very little air travel happening now) has taken off! We've seen a 267% increase from October of 2019 to October 2020 in the number of sales. There were only 3 sales in October of last year, whereas we saw 11 sales this year. 

As I mentioned, there was also a significant increase in the median sales price in Moanalua-Salt Lake. It was the highest increase on the island with a bump of 54%. The median sales price last year was at $650,000 and in this year, Moanalua-Salt Lake ended up with a median price of $1 million! The next market after Moanalua-Salt Lake that showed a lot of strength (now for many months in a row) was the North Shore of Oahu. The North Shore saw a 31% increase in the median sales price. Whereas October of last year, that price was $814,500 and this year it's bumped up to $1,070,000!

Those are obviously the two areas showing the most strength across the board. We're still seeing a lack of inventory, so if your home is priced well it is moving quick. All of the sudden our office is on fire right now trying to close out the remainder of 2020.

Condo Neighborhood Report

Condo sales seem to be picking up momentum in October in 12 of the 21 neighborhoods we follow. Can you guess the top 3 neighborhoods based upon the number of sales? The neighborhoods with the highest number of sales are:

1. The Ewa Plain with 60 sales, a 22% increase compared with last October
2. Makiki-Moiliili with 59 sales, 16% more sales than in October last year
3. Waikiki with 60 sales, however the number of sales were 22% below than the number last year

Prices were up in 2 of these 3 top selling neighborhoods. The median price in the Ewa Plain was up by 3% to $537,500. The median price in Makiki-Moiliili was up by 5% to $392,000. In Waikiki, the median price in October was down 15% to $365,000. 

Clearly there are opportunities for both Buyers and Sellers in this very interesting market. We'd be happy to talk to you about your real estate goals.  Until next month, be well, take care of each other and keep washing your hands ;) Aloha!

Single Family Home Market Report

David is on location from his beautiful new Harcourts Auctions listing in Kaneohe. It's a beautiful day on a Sunday with Coconut Island and Chinaman's Hat in the background. We finished off the month short of a record high at $865,000, which is a 10.9% jump in median sales price from last year, where we were only at $780,000. 

Median days on market was phenomenal once again for Sellers with just 10 days. A year ago, we were at 23 days on market. New listings are down 17.6%. So, that's the constraint we're seeing in the market with supply. Pending sales are up 22.1%. Things are cooking amidst this Corona Virus and coming off the back of election week here.

Months of remaining inventory remains low at 1.8 months, which is down 47% from a year ago. NAR (The National Association of Realtors) says anything less than 6 months is considered a Seller's Market and we're currently at 1.8% months. Active listings were down 37.7% from a year ago. There were over 1500 homes on the market this time last year, whereas today there were only 941.

So, that's what's driving this market here folks - just the lack of inventory. If you're thinking about selling, now might not be a bad time. Our average sales price is up 15.2%. The luxury market is picking up as well. The median price was up over 10%, whereas the average price was up over 15%. There's definitely strength in the market. Last, but not least Sellers did get 100% of asking price (on average). Some were above 100%, some were below and some did not sell (that happens), however those that did sell in the month of October got 100% of their asking price!

Condo Sales

Today, Dianne is happy to report that there were more condo sales in October this year than there were in the same month of last year. This is the first time since March that sales have outpaced the same month's sales from a year ago, and it's an indication that the condo market may be bouncing back to normal levels of market activity. Along with the number of sales, the pace picked of sales picked up in October. Half of the condo sales in October closed in 18 days or fewer this year, compared with 26 days in October of 2019.

The median price for condos has remained steady in October, 2020 at $439,500, roughly the same as in October of last year. Looking forward to the end of the year, as we have more visitors arriving from the US mainland and Japan the number of active condo listings is down about 5% from October of last year. So, if you're thinking about selling a condo, this could be a great time to explore your options. 

We look forward to talking to you about your real estate needs. Until our next report, be well take care of each other and don't forget to keep washing your hands :) Aloha!

Doctor Strange in Aspen, Colorado shares info. on Listings by Harcourts Island Real Estate

Steven Strange here... It's been a strange year in 2020. I took a time warp here to Aspen, Colorado. What I'd like to share with you is what some of my Marvel friends have been doing, Captain America last year and Wolverine in the past, talking about some really cool properties with Harcourts Island Real Estate in Honolulu, HI.

Mid Century Modern Home on the Slopes of Diamond Head

The first property is a beautify mid century modern home on the slopes of Diamond Head. It's a 5 bed, 4 bath mid century modern gem. I wish I could take this time stone and go back in time to see it when it was built in 1966. You've gotta see this property. It's something else.

Kaneohe Custom Home with Kaneohe Bay Views

The next home I'm going to tell you about is in Kaneohe. It's a custom designed home by Geoff Lewis. With 3 bedrooms and 2.5 baths, there are sensational views of Kaneoha Bay. It's a must see that's been launched by Harcourts Auctions this past week. So, you have to go and check it out.

Waipahu Bank Owned Property

The third property I'm going to tell you about is a bank owned property. It's situated in Waipahu with 11 bedrooms and 4 bathrooms. It's an investor's delight. You've gotta get out there and see it.

Vintage Bungalow Home in Kalihi

The last home I'm going to tell you about is a vintage 2 bed, 1 bath bungalow home in Kalihi. Also, marketed through Harcourts Auctions on November 19th, Get out there because we've already got a lot of interest on this one.

2020 Has Been a Strange Year

Just to summarize, that was 4 great listings you've gotta get out to see from Harcourts Island Real Estate. Wishing everyone a Happy Halloween. It has been a strange year... We've seen all kinds of things from Tiger King to COVID. Just get out there and have a safe Halloween this weekend. Aloha!

Local Update for Single Family Homes

We saw the largest increase in the number of sales from Moanalua-Salt Lake, where there was a 200% jump over the previous year. There were 2 sales in September of 2019 and this year we saw 6 sales. Slightly behind Moanalua-Salt Lake the next runner up for the increase in sales traffic was Downtown-Nuuanu. There we saw 160% increase in sales, where there were 5 sales last year and now this year there were 13 sales. This was definitely an increase in buyer traffic in those 2 neighborhoods. 

As far as prices go, we saw the largest increase from Moiliili-Makiki and that was a 44% increase over the previous year. In September of last year, the median sales price there was $987,500 and it's bumped up to $1,417,500! Once again that was a 44% increase there. Shortly thereafter, there were 2 neighborhoods tied with a 37% increase and that was Kalihi-Palama as well as the Windward Coast of Oahu. Right behind that was Hawaii Kai, which saw a 36% increase. Definitely showing strength in numbers and buyer demand in those neighborhoods.

Local Update for Condos

Two weeks ago we reported that the condo market on Oahu seems to be strengthening a bit after 6 months of sluggish performance. Which neighborhoods do you think are performing the best? More than half of the 21 neighborhoods we follow posted an increase in closed sales in September, 2020 compared with the same month last year. One of the top performing neighborhoods in September was Pearl City-Aiea where the number of closed sales was up 56% this year and the median price at $415,000 was up by 8% compared with September 2019.

The Ewa Plain had the largest number of sales in September 2020 with 66 closed sales, an increase of 25% compared to September of last year. The median price in Ewa of $569,500 is up by 11%. Waikiki lags behind other neighborhoods with less than half as many sales in September 2020 compared with September 2019. Waikiki's median price of $417,000 is up by 5%. As we welcome more visitors back to Honolulu, we'll keep an eye on Waikiki to see how the market changes as more visitors arrive.

Looking ahead, 6 of the 21 neighborhoods we follow show an increase in the number of listings at the end of September, 2020 compared to September last year. Ewa and Kailua are the leading neighborhoods in terms of new listing growth. Despite the challenges we've seen this year, there are opportunities for buyers and sellers in today's market. We're here to talk with you anytime about your real estate questions.

As always, be well, take care of each other and keep washing your hands. Aloha!

As inventory in the condo market on Oahu has been on the rise during COVID, one building that traditionally has low inventory is the Regency at Kahala. Why? Location, location, location...

Regency at Kahala seen on a sunny October morning

The Regency at Kahala sits on the same block at Kahala Mall and within the same neighborhood of what has traditionally been some of the priciest real estate on Oahu. Kamehameha Schools (who owns just about all of the commercially zoned real estate in Kahala) recently redeveloped the old McDonald's property and adjacent strip-mall in place of where the old bowling alley used to be. Other coming attractions to Kahala are a new Bank of Hawaii and Foodland.

1 Closed and 2 For Sale

In the past 6 months, there's only been 1 sale in the Regency at Kahala which was 15A that closed on September 30th for $1,575,000. Today there are currently 2 available for sale:

Regency at Kahala 11D (MLS # 202024676) is a 2 bed, 2 bath asking $1,299,000

Regency at Kahala 11B (MLS # 202025066) is a 1 bed, 1 bath asking $1,379,000

It will be interested to see how quick these two go with the latest retail gentrification in Kahala. Both have been on the market less than 30 days. If there's anything I can help with in Kahala, feel free to contact me for more information.

This past week one of our agents had a question. His client is under contract on a re-sale condo purchase in town. The client was asking him of all the condo docs he's reviewing, what would be considered the most important to review? Well, first off - Here's a spoiler alert - THEY ARE ALL IMPORTANT. I wouldn't discount any one of them.

On a typical resale here in Hawaii, the standard Hawaii Association of Realtors Purchase Contract there's a paragraph M-1. That's where it says the Seller is going to provide all the available condo documents for the property. That includes the last 3 months of board meeting minutes, the annual report, house rules, articles of incorporation and so on... 

Like I said, all of them are important. However, I would have to say probably the 2 most important would be the ones that your lender considers important. Whenever you're in a resale purchase and your getting financing the 2 documents your lender wants to see are:

1. Certificate (Summary) of Insurance. When you think about it, they are the first lien holder on your property outside of your property taxes, so they want to make sure their investment is well insured.

2. The rr105c or often referred to as a "Property Information Form" which is filed out by the property manager for the building. It's kind of like a disclosure statement in a sense and it says how many units are in the building*, how many units are arrears in their maintenance fees, how many are in foreclosure and if there's any litigation in the building. Reading that document will typically provide the lender with enough information to move forward with the purchase and give the buyer the loan.

To recap here, when reading all your condo docs here in Hawaii, they are all important.  The two above would probably be considered the most important. Mahalo

* The term "building" was loosely used in this presentation to refer to a condominium association. Not all are a "building" per se.  You can have horizontal condo properties sprawled out over multiple buildings and/or structures within the same association.

Single Family Home Stats

We finished off the month with another strong showing with a record sales price of $880,000. That's a 13.3% increase from just a year ago, where we were sitting at $770,000. The median days on market saw a huge drop. They're down 69% from 29 days last year (which was phenomenal) to just 9 days this year. 

New listings are not really making it to market and that's what's really driving this - is the lack of inventory. New listings are seeing 18% less homes coming to market than we were a year ago. However, pending sales are up 38.3%. So, once again it's super strong for home owners if you price your home well.

On average homes are getting 100% of asking price of those that are selling. The number of homes on the market, which is what Buyers have to choose from is down significantly. It's down 39% from a year ago. If you're a home seller and you're thinking about selling and price your home right, now can be the time.

Another exciting thing I wanted to share with you is the lack of the economy being open here with COVID has primarily being driven by local buyers and working class housing. We might see an uptick with the luxury market. That'd be my prediction because a lot of the buyers that would like to purchase here for a 2nd home haven't come because they've had to quarantine for 2 weeks. Well, that's going to go away come tomorrow. On October 15th, you will no longer have to quarantine for 2 weeks if you text negative for COVID ahead of time.

I just got back from the mainland a few weeks ago and just coming out of quarantine (hence the beard) and I'm excited to get out there and get some real estate sold. I've got a few exciting listings I'm planning to launch this coming week for Harcourts Auctions, so stay tuned... Mahalo.

Condo Stats

Are you ready for some good news for a change? You may recall that condo sales have been lagging behind single family home sales for the past 6 months. This spring and summer while the single family homes market has continued to post strong sales numbers and substantial increases in median sales prices, the number of condo sales in each of the past 6 months has been running 20-30% to even 50% behind the numbers of sales in the same months pre COVID-19.

Well, the month of September may signal a strengthening in the condo market. The number of sales in September of 2020 at 456 was just 2% below the number of sales in September of last year. Another bit of good news is the median sales price was unchanged from last September at $445,000 after bobbing below last years monthly median prices in 4 of the past 6 months.

These trends may continue as we look ahead to the 4th quarter. With new condo listings down by almost 10% compared from this time last year, we may see a bit more heat in the condo market as we wrap up 2020. Each market is different and every home is unique. If you'd like to talk about opportunities we see in our current markets, please contact us. In the meantime, be well, take care of each other and keep washing your hands :) Aloha.

Happy Aloha Friday, I wanted to share with you a special offering that recently came back to market by the Howard Hughes Corporation in Kakaako’s Ward Village:

Anaha Grand Penthouse #3801 (MLS # 202023448) Great Room

Anaha Penthouse #3801 is now priced at $15 million, which is a $2.5 million dollar reduction since it was listed last year!

Anaha Penthouse #3801 Private Swimming Pool

With 5 bedrooms, 6.5 baths, this 2 story penthouse has its very own swimming pool and boasts an additional 915 sq. ft. of outdoor lanais. This is something truly amazing that can be found nowhere else on Oahu. Sit back and enjoy the rest of the video and feel free to contact me for any questions. Mahalo!

Single Family Home Local Neighborhood Update

Hawaii Kai and Moanalua-Salt Lake had the largest increase in sales. Both neighborhoods were up 50% from August of 2019. Surprisingly Mililani saw the largest drop in the number of sales, which was down 44%. Military families are still PCSing here during COVID, so not really sure what is happening there?

The largest gain in median sales price was on the North Shore, where prices jumped 58% from $798,000 a year ago to $1,262,500 in August of this year.

Condo Local Neighborhood Update

As we've reported for the last few months, the condo market on Oahu is recovering from the initial shock of the first statewide COVID lockdown. The rate of recovery is slow when compared to the single family home market. When we focus on neighborhood level market activity, there are a few places on the island with noteworthy sales. 

From January-August, Waialae-Kahala had 33 sales this year, 10% more sales than the number of sales through August in 2019. Kaneohe had 136 sales, which was an increase of 11% compared with last year and there were 83 sales in Kailua-Waimanalo, 4% more than through August of 2019. However, median sales prices in all 3 markets were down. Waialae-Kahala posted a median price of $515,000, which was 7% below the median price for the same neighborhood last year. The median price in Kaneohe at $555,000 is down by 4% compared with last year and the median price in Kailua-Waimanalo at $639,000 is 2% below the 2019 median price for the neighborhood.

Waikiki continues to post sluggish sales. There were 432 closed sales in Waikiki year to date, 36% fewer than the number of closed sales in 2019. The median price at $390,000 is down by 2% compared with last year. Inventory was down in August in 13 of the 21 neighborhoods we follow.

Interest rates remain historically low. So, this may be a good time to explore your options if you're thinking of buying or selling a condominium. Take care of each other, be well and don't forget to keep washing your hands. Aloha!