Yesterday we had a Zoom Meeting with the sales team over at Azure Ala Moana. If you're not familiar with Azure, it's a new condo project on the mauka side of Ala Moana Shopping Center off Keeaumoku St. with close proximity to Walgreens, Walmart, Target and more. Here's some of the takeaways we got about this exciting new project:
The Team
Developer - Featuring Rick Stack - Formerly of Alexander and Baldwin
Architect - Design Partners - known for their work on Waihonua, The Collection Ala Moana and Kapiolani Residence.
Interior Design - Hirsch Bedner Associates
Contractor - Albert Kobayashi
The Perks of Owning Azure
Guest Suites
Movie Theater
Only 11 Units/floor
Maint. Fees only $.85/square foot
9' Ceilings on the 34th Floor and Up (8.5' on lower floors)
82% SOLD Out
So far to date, they are 82% SOLD and completely sold out of the 1 bedroom units. With the onset of COVID-19, showing presentations are a little more tricky. The developer is also offering incentives such as 2.5-5% Credit to Buyers and Free Storage Lockers. There's a select amount of remaining inventory and feel free to contact any of our agents that are versed and up to date on this project:
In the midst of the COVID-19 lock-down here in Honolulu, one condo project in Waikiki that seems to be feeling the pain more than others is the Ritz-Carlton Waikiki.
Tower 1 at the Ritz-Carlton Residences in Waikiki
There are currently 73 listings for sale in the building, with only 1 in escrow. Meanwhile, there have only been 7 sales in the past 6 months. Based upon that, the absorption rate is MUCH more sluggish than the overall Waikiki condo market, let alone the island of Oahu.
Here are several of the reasons why this "perfect storm" is taking place for units there outside of COVID-19:
Speculative Buyers Overpaid
Much of the inventory in the building was sold to 2nd homeowners overseas. The same problem took place at Trump Tower Waikiki (same developer). They marketed this project overseas and speculative Buyers thought they could lock in prices pre-construction and then sell for a profit when the building was complete. Keep in mind - the prices paid both here and Trump Tower Waikiki were "above market" to begin with, which leaves little room on the upside. Trump Tower for many years after completion had a ton of inventory for many years - often upwards of 70+ units for sale at any given time. Today there are 59 there.
Low Cashflow Returns
Unlike most other "condotel" buildings in Waikiki, the management rates and overrides taken by the onsite management makes it really hard for the owners to make any money. Don't get me wrong - these are both nice buildings. It's just that the NOI is typically an anemic low single digit return. Since there's little room on short term appreciation and/or cashflow, I've always said these buildings are more of a "lifestyle" play.
If you're looking to own in a great location with well known brand names over the long haul, these could still be decent "long term" plays for 2nd home ownership in Waikiki. If that's something you're looking for, these next few months could be some great times to shop for a unit here as there's A LOT to choose from and very little selling.
We finished off the month with a median sales price of $810,000. That's up 3.5% from last year. Meanwhile, we had a nice bump in the number of sales, which were up 9.8% to 303 sales for the month. Now keep in mind, most of these sales were under contract prior to Corona Virus. The numbers are looking really good. Days on Market were actually down 37.5% which went from 24 days last year to just 15 days this year. We'll see how that transitions into April stats as this takes into effect the Corona Virus situation because numbers of new listings hitting the market are actually down 16.7%.
Condo Stats
The condominium market already appears to be showing signs of slowing. The number of closed sales at the end of March was down by about 12% compared to the number of sales that closed in March of 2019. Median prices are still strong. The median price in March of 2020 was $435,000, which was up by about 1.4% compared to March of last year.
The real indicators that we're keeping an eye on are the number of new listings which are coming on the market in March of this year. That was down by 14% and we also track the number of pending sales. Pending sales were down by almost 12%. These are both indicators that suggest we're likely to see a shift in market dynamics with fewer homes on the market and reduced inventory. If you've been thinking about putting your property on the market, please contact us:
David E. Buck, Realtor 808-371-3509
Dianne Willoughby, Realtor 808-347-9945
We'd love to talk to you about what this shift in inventory might mean for you.
In the meantime, be careful, stay safe, stay at home and don't forget to wash your hands :) Aloha!
Aloha - I just wanted to give you a quick and exciting update we have for HawaiiHomeListings.com What we've done is added a virtual tour button to the listing detail page. That way you can schedule a virtual showing with your Realtor, so that you don't have to get out of the comfort of your own home during this Corona Virus epidemic.
If you're on the home page and you click on a listing and would like to see a property or are on the mainland, you can click on the button that says "schedule a virtual tour". You'd then fill in your information in the pop up window. If you are already are logged in or have an account with us then it should either auto-populate or you'll already be in.
We look forward to doing some business with you here in the near future. Mahalo!
Aloha - today is April 1st or "April Fools Day" which would normally be a fun and festive time of year, however it's not all fun and laughter as we're all dealing with this Corona Virus epidemic. Today is actually my first day to make it into the office in over a week. Kids have been out of school on spring break and they have just started back up virtually as of today. So, here I am at the office.
It's been business as usual. Realtors are considered "essential services" according to the Governor and the Mayor here in Honolulu. So, we're still getting business done. We're still getting transactions done. I've got 3 deals in escrow right now that are still chugging along. I've also got an offer on a listing of mine we're negotiating on. Although it's kind of been business as usual, Honolulu has been in a lockdown for the last few weeks.
Here we are out the back on Kapahulu Ave., which is the gateway to Waikiki near where our office is located. Typically, if you were here on a week day afternoon, this road would be bustling with cars, kids getting out of school, etc. You could see breaks right now where's there's not a car on the road.
It's an eerie time, but we're still doing real estate. I just want to wish everyone the best and stay healthy and safe out there. Mahalo :)
Mililani had the largest increase in the number of sales with a 114% increase. It jumped from 7 sales in February of 2019 to 15 sales in February of this year.
Aerial View of Hawaii Kai
As far as the median sales price goes, Hawaii Kai saw the largest spike with a 33% increase. That went from $1,357,500 in February of last year to $1,800,000 in February of this year. So, it's a great time for Sellers.
Local Market Report for Condos
If we look year to date, the number of neighborhoods that have had increases in the number of sales is about equal to the number of neighborhoods that had decreases in the number of sales. So, our market is relatively stable. The neighborhood that had the largest increase in the number of sales was Kaneohe.
Eden at Haiku Woods Condos in Kaneohe
In Kaneohe, there was more than a doubling of sales. It went from 7 sales in February of 2019 to 15 sales in 2020.
Our highest median price was in Hawaii Kai where the median price in February of 2020 reached almost $800,000. It's an interesting time to be in real estate. It's a very interesting time if you have a house or a condominium to sell. Harcourts is different because we do auctions. The following will cover auction activity for this month.
Harcourts Auctions Activity in March
We are the auction experts
In the height of this global pandemic with the corona virus, real estate doesn't sleep. Harcourts Auctions is still getting properties sold. This past Wednesday, we held our non-distressed auction platform virtually out of California. There were 21 properties for sale and of those, 7 were just "previews" as we're now rolling out auctions in the Bay Area. However, 14 properties went to market, 8 sold and 5 others are currently under negotiations. Only 1 of the 14 is "still available". In addition, every single one of those auction listings had offers on them and some had multiple offers. So, this is a great business model and a great option for Sellers in this current market environment.
We're hosting these auctions virtually. You can still look at the homes obviously, however the auction process is taking place online and you don't have to go into a room with a bunch of bidders. If you want more information on this, feel free to reach out to us at 808-777-4880. Aloha!
The month ended up with a median sales price of $765,000 which is down 3% from February of 2019, which was $789,000. Closed sales on the other hand were up 18.8%, which was awesome! It went from 208 sales last year to 247 this year. The Days on Market however have been increasing by 40% from just 25 days a year ago to 35 days this past month.
Sellers are now receiving 98.3% of their asking price, which is incredible. Just keep in mind that is based upon the last asking price before they sold. Sometimes they may start higher, but it's 98.3% of their last of their last asking price. It's still a great market for sellers and Dianne will be sharing what's happening in the condominium market.
Condo Sales Stats
The number of sales year to date for condominiums is up 7.4% compared with 2019. It's an average of about 350 condo sales per month in both January and February of 2020. The number of Days on the Market has increased by 40% staying on the market 35 days instead of 25 days a year ago. Our median price for condos is up by 3.6% to $430,000 in February of 2020.
The number of new listings for condos is down to 369, which is a 3.6% decline from February of 2019. Months of inventory for condominiums remains unchanged at 3.6 months of inventory. We're keeping an eye on that and all of the other indicators because we just had an announcement that the Corona Virus has now been declared a national emergency and we're waiting to see how that is going to impact our real estate sales.
Remember, every home is different and every market is different. If you'd like to find out what this means for you, please call us at Harcourts Island Real Estate - 808-777-4800 Aloha!
The month ended up with a median sales price of $770,000, which was up just .3% from January of 2019. The sales finished up 7.7% as far as the number of transactions. The median days on market was 35 days, which is taking about 8 days longer to sell than it was a year ago.
As far as the local markets go, Aina Haina-Kuliouou saw the largest increase which was 400%! Now, keep in mind that it went from 1 sale to 4 sales, so we'll take that with a grain of salt. The biggest decrease took place in Wahiawa where we saw a 64% decrease in the number of sales. That went from 11 sales last year to just 4 sales this year.
Regarding the median sales price in these local neighborhoods, Aina Haina-Kuliouou also saw the largest increase at 128%. Unfortunately, Diamond Head-Kapahulu saw the largest decrease at 29% for single family homes. Dianne is going to get into the condos shortly and the Diamond Head-Kapahulu neighborhood will be a little bit different as far as the stats go on the condo side. We appreciate you bearing with us as this video was done without our trusty editor this month :)
Condo Stats
Overall across the island we had 379 condo sales this January. This is an increase of 16.3%. 2020 if off to a great start! The median sales price was also up (up by 7.5%) to $429,000 for a condominium in Honolulu. We may a little bit of a tighter market as we go further into 2020 because new listing inventory was down 19.7% compared to January of last year.
When we look at the neighborhoods as David pointed out, the largest percentage increase in the number of condo sales happened on the Windward Coast. The number of sale doubled from 1 to 2. The Diamond Head-Kapahulu area had the largest price increase. The prices were up 48% compared to last year. The median sales price in this neighborhood was $574,500.
Every condominium is different, every home is different and every market is different. If you want to find out what this means for you, call us at Harcourts Island Real Estate 808-777-4880.
Auction Update
Last, but not least we forgot to give you an auction update. We sold a Symphony Penthouse in Kakaako under the hammer on auction day. Auctions work!
Harcourts Auctions will auction a very special Hawaii home on February 20, 2020. As the listing agent, I’ve come to know the property well and I believe that the best possible new owner is Jason Momoa.
This Honolulu home surrounded by water would be perfect for "Auquaman"
Here are the top three reasons why:
1.Lisa Bonnet
The love story between Jason Momoa and Lisa Bonet is one of the most romantic stories in Hollywood today. Even before they met, Jason “knew” that Lisa was The One. She is his queen and the love of his life.
Mirrored Dressing Room
Lisa deserves this mirrored dressing room with a sunken tub.
Sunken Tub
This boudoir is picture perfect for elegant, feminine Lisa.
2. Kanewai Fishpond
Jason Momoa is true to his Hawaiian heritage and connected to the Hawaiian culture.
Kupuna say that Kānewai Spring is “where the mountain gives birth to the ocean,” because these headwaters flow into Kānewai Fishpond, then to Paikō Lagoon Wildlife Sanctuary, and finally into Maunalua Bay. This video tells the story of how Kanewai Spring was reclaimed in 2017 and now is owned and managed by the Maunalua Fishpond Heritage Center and Trust for the Public Land,. This property includes an undivided 1/10 interest in Kanewai Fishpond. If Jason Momoa buys this house, the Fishpond will remain protected.
3. The House is BIG
Oversized Mid Century Ossipoff Home
Jason Momoa is a big guy. This house is huge. There is plenty of room inside and outside for Mr. Momoa and his family to live, work and play. With almost 8,000 square feet under roof and over an acre of lawn, I believe this is a Perfect Fit for the Momoa/Bonet ‘ohana. It was also designed by Vladimir Ossipoff, Hawaiii's most renowned mid century modern architect.
We're now mid way through January of 2020 and we're here to give you the market report for single family homes in the month of December, 2019. As you can see it's a little bit cloudy outside as we just finished up the Sony Open here on Oahu this past weekend. The weather was less than ideal, however I think everyone had a great time.
Single Family Home Stats
The median sales price ended up at $820,000 which is a 4.1% increase over December of 2018. There were 309 single family homes sales, which is an increase of 19.3%. So, it's actually been a phenomenal month for Sellers. Days on market were 18, which is down 40% from the previous year at 40 days on market.
Pending sales were up 17.8% and meanwhile months of remaining inventory is down 10.7% and active listings are down 8.6%. Going into 2020, it's a great time to put your house on the market because there are more buyers out there and less available inventory.
Condo Stats
The number of sales in December was 428 which was down about 2.7%. That is not a lot. The median condo price on Oahu was up to $425,000. That's an increase of 6.8%. That's pretty good. Our months of inventory at the end of December was up to 3.4 months of remaining inventory. That is a little bit slowing in the way of sales. The median days on market was also up to 30 days, up from 25 days on market in December of 2018 (the year before). The number of pending sales was up 5%, which suggests we might have a strong number of closings this month in January.
2020 is off to a great start and we're wishing everybody a very Happy New Year. We hope to have an opportunity to help with your real estate questions during the coming year. Aloha!
