Honolulu, Hawaii Real Estate Resale Statistics – First Quarter 2010

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The Honolulu Board of REALTORS® released the resale figures below based on data collected from its computerized Multiple Listing Service (MLS) system.  The number of homes and condos sold are for the year-to-date (2010 and 2009).  The median prices cited below are year-to-date for 2010 and 2009 as well. 

Single Family Homes

  2010 2010 2009 2009
Neighborhood Sold Median* Sold Median*
Aina Haina-Kuliouou 12 $948,500 12 $877,500
Ala Moana-Kakaako 2 $515,000 0 NA
Downtown-Nuuanu 15 $743,000 8 $692,500
Ewa Plain 107 $434,900 75 $459,500
Hawaii Kai 38 $780,000 33 $750,000
Kailua-Waimanalo 48 $825,000 32  $700,000
Kalihi-Palama  20 $535,000 19 $540,000
Kaneohe  67 $615,000 35  $629,000
Kapahulu-Dia. Head  43 $775,000 29  $737,500
Makaha-Nanakuli  33 $283,500 24  $343,750
Makakilo  14 $629,290 12  $515,000
Makiki-Moilili 12 $880,000 12  $726,475
Mililani 27 $637,500 29  $585,000
Moanalua-Salt Lake 11 $664,500 3 $740,000
North Shore 17 $740,000 $597,625
Pearl City-Aiea 38 $562,500 20 $555,000
Wahiawa 13 $359,000 $436,000
Waialae-Kahala 19 $1,298,000 23  $1,200,000
Waikiki 0 NA NA
Waipahu 58  $530,275 50 $507,000
Windward Coast 8 $474,950 8 $535,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condominiums

  2010 2010 2009 2009
Neighborhood Sold Median* Sold Median*
Aina Haina-Kuliouou 2 $443,000 0 NA
Ala Moana-Kakaako 71 $380,000 52 $270,000
Downtown-Nuuanu 51 $445,000 30 $335,000
Ewa Plain 56 $268,000 33 $284,000
Hawaii Kai 34 $525,000 33 $500,000
Kailua-Waimanalo 17 $375,000 11  $330,000
Kalihi-Palama  23 $300,000 12 $337,500
Kaneohe  26 $332,500 20  $422,500
Kapahulu-Dia. Head  23 $396,500 $350,000
Makaha-Nanakuli  33 $90,000 16  $119,725
Makakilo  17 $250,000 17  $234,000
Makiki-Moilili 105 $287,500 58  $285,000
Mililani 39 $290,000 40  $304,000
Moanalua-Salt Lake 46 $269,000 34 $317,500
North Shore 3 $240,000 $332,000
Pearl City-Aiea 61 $285,000 42 $266,250
Wahiawa 2 $152,500 $145,000
Waialae-Kahala 7 $397,500 $321,000
Waikiki 160 $286,500 96  $278,000
Waipahu 59  $282,500 48 $297,500
Windward Coast 1 $307,500 0 NA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Median price means half the prices were above and half below the given price.

Do you think conditions make this the right time to make a move?  Please visit my web site to order special reports for buyers and sellers or conduct your own Honolulu real estate search.

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Market Reports | April 15th, 2010

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Quote – Thomas Sowell

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“After both World Wars, the United States had to step in to save millions of people in Europe from starving amid the wreckage and rubble that their wars had created.  These do not seem like people whose sophistication we should defer to.”

- Thomas Sowell

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Quotes | April 13th, 2010

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Waiting for the Bottom

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Many folks are waiting, trying to perfectly time the real estate bottom.  Perhaps, one morning, the Honolulu Advertiser headlines will read “THE BOTTOM IS HERE:  NOW IS THE TIME TO BUY”.  Perhaps not.  By the time that announcement comes, the bottom will have come and gone.  You can only be sure of the bottom well after it’s already occurred.

A great analogy to the bottom of the real estate market is a yo-yo.  Take a yo-yo in your hand and use it.  Can a person grab the yo-yo at the exact moment it hits bottom every time?  Chances are a person will grab it just before it hits bottom or just after; rarely at the exact bottom.  Real estate works the same way.  If people knew the exact time to buy stocks, real estate or any other investment, no one would ever have a financial worry.

For those who believe that real estate is a good way to attain wealth, now is a reasonable time to buy.  Interest rates  won’t be low forever and each 1/2% increase in rate reduces your purchasing power by 5%.  Mortgage rates have been low for quite some time, but they can change quickly.  Don’t look back at this time and say to yourself, “if only I had bought then.”

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Buyers, Real Estate | April 11th, 2010

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Honolulu Real Estate Statistics – March 2010

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The Honolulu Board of REALTORS® released resale figures for the month of March.  According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system, the statistics are:

Single Family Home Resales

  Number of Sales This Month Compared To Prior Year Median* Sales Price This Month Compared To Prior Year
Mar 2010 251 +32.1% $599,000 +4.2%
Mar 2009 190 -30.1% $575,000 -8.8%
Mar 2008 272   $630,500  

 

 

 

 

Condominium Resales

  Number of Sales This Month Compared To Prior Year Median* Sales Price This Month Compared To Prior Year
Mar 2010 352 +36.4% $310,000 +3.3%
Mar 2009 258 -31.7% $300,000 -7.7%
Mar 2008 378   $325,000  

 

 

 

 
*Median price means half the prices were above and half below the given price.

During March, sales of 251 single-family homes and 352 condominiums were reported through the Board’s MLS, an increase of 32.1 percent for single-family homes and an increase of 36.4 percent for condominiums, compared to the same month last year.  The median prices paid for island properties in March was $599,000 for single family homes and $310,000 for condominiums, an increase of 4.2 percent for single-family homes and an increase of 3.3 percent for condominiums from March 2009.

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Market Reports | April 9th, 2010

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Honolulu Interest Rates Rise

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The Federal Reserve (Fed) did what it set out to do.  It purchased $1.25 trillion of mortgage backed securities, succeeded with its plan to lower home loan rates and helped stabilize the housing sector.  Although the Fed stretched out the length of the program slightly, to soften the impact of the end of the program, the training wheels are off, the safety net is gone and home loan rates have already moved higher.  As the Fed begins to sell portions of its massive holdings of mortgage backed securities, rates may continue to move higher still.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Mortgage Issues | April 7th, 2010

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EPA Lead-Based Paint Renovation Rule Goes Into Effect April 22, 2010

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By now, we all know that lead paint is an extremely dangerous substance.  Common renovation activities like sanding, cutting and demolition can create hazardous lead dust and chips by disturbing lead-based paint, which can be harmful to adults and children.

To protect against this risk, two years ago, the EPA issued a rule requiring the use of lead-safe practices and other actions aimed at preventing lead poisoning.  Under the rule, beginning on April 22, 2010, contractors performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must be certified and must follow specific work practices to prevent lead contamination.

Read the new EPA – Renovate Right Brochure

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Home Care, Real Estate | April 5th, 2010

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Seller’s Disclosure Statement is Required in Hawaii


Hawaii’s standard home purchase contract and Hawaii State law requires a Hawaii Seller Real Property Disclosure Statement.  This disclosure requires the seller to fully and accurately disclose in writing to the buyer any fact, defect, or condition, past or present, that would be expected to measurably affect the value of the property to a reasonable person.   Be advised, if you’re purchasing REO (Real Estate Owned) property, the lender often will not provide a Seller’s Disclosure.

Buyers should allow for the possibility that some owners may withhold material facts.  They may simply forget that they repaired a roof leak five years ago.  Must that be disclosed, even if the repair is complete?  Yes.  What is the best way to determine the issues that exist with a home?  Hire a reputable home inspector.  It’s that simple.

A home inspection can make or break a deal, but it is extremely important for a home buyer to know what issues exist with the home they are purchasing.  Important issues like mold, a leaky roof and termites may be very expensive problems and facing them head on will benefit the buyer in the long run.

Contact Michael Zimmerman for a referral to a reliable home inspector.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Buyers, Real Estate | April 3rd, 2010

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Quote – Thomas Jefferson


“Whenever the people are well-informed, they can be trusted with their own government.”

- Thomas Jefferson

Quotes | March 30th, 2010

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Find the Right Oahu Lender


Once you decide the time is right to buy a home, one of the first steps is to find an Oahu lender.  There are a few options to consider such as banks, mortgage brokers and internet lenders.  All offer different financing options.  To choose the lender that’s right for you, it’s important to understand the pros and cons of each.

Banks, such as First Hawaiian and Bank of Hawaii, offer the safety and security of federal regulation.  In addition, if you have been with a particular bank for a while and have a good working relationship, you may qualify for a better rate.  The downside of choosing a bank is that they may not offer the best rates.

Mortgage Brokers, such as Pacific Access Mortgage, have access to many different money sources and will shop around to find the best rates.  One possible disadvantage of working with a mortgage broker is they may charge higher loan origination fees (points).

Internet lenders, such as Lending Tree and E*Trade, allow you to shop for the most competitive rates available online.  The downside of internet lending, and this is HUGE in Hawaii, is that it is all on you.  You are responsible for all of the research involved and there is little personal communication.  BEWARE, many internet lenders are not familiar with Hawaiian property and the way business is conducted in Hawaii, so they may not be able to grant the loan conditions initially promised.

As I write, mortgage rates are below 5%; near their historic lows.  If you are employed and can afford it, today’s interest rates represent a tremendous opportunity to buy a home or investment property.  But first, do your research and find the lender that’s right for you.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Mortgage Issues, Real Estate | March 26th, 2010

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March 2010 Honolulu Condominium Market Report – Moana Pacific


Summary
Just look at the robust sales recorded in the chart below!  As you’d expect, things were a little slow over the holidays (those sales typically record in February of the following year).  In previous reports, I wrote that it was difficult for some buyers to finance their Moana Pacific purchase and that most sales were for cash.  I’m glad to write that 5 of the last 7 sales were made with financing.  This provides sellers with greater prospects of selling their home.  If you’re looking for a 1-bedroom here, there’s not much to choose from since four 1-bedroom apartments were sold in the last 90 days.

Moana Pacific Apartments Listed vs. Sold Graph

The chart above depicts the number of sales recorded each month vs. the number of apartments available for sale at the end of each month.  In the last six months, Moana Pacific averaged 2.5 sales per month and if that pace continues, it will take 6 months to sell the 15 apartments currently available.

Moana Pacific Condominium
1288-1296 Kapiolani Blvd., Honolulu, HI 96814
Built:  2007
 
Schools
Elementary School:  Kaahumanu
Middle School:  Washington
High School:  McKinley

Location

Conveniently located a few blocks from the Ala Moana Shopping Center and the Nordstrom store located on Kapiolani Blvd.

Feature

Co-located with the Honolulu Design Center, Stage Restaurant and Amuse Wine Bar.

Availability

Apartments in the building:  720
Apartments available for sale:  15
Average days on market to date:  83
Apartments listed for sale in the last 30 days:  3
Months of inventory available:  5.6

Sales

Apartments under contract in escrow:  4
Apartments sold in the last 90 days:  8
Average days on market:  66
Average price per square foot:  $564.94
Sales Price / List Price:  96%
 
What else would you like to know about Moana Pacific?  Please visit my web site to view Moana Pacific apartments for sale, request special reports or conduct your own Honolulu condo search.  If you’re thinking of selling your home and want to do so quickly, contact Michael Zimmerman for a no obligation consultation.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Market Reports, Moana Pacific | March 22nd, 2010

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The Reality of Honolulu Realty


Real estate that is selling in most places is selling because IT IS PRICED RIGHT.  People are buying real estate that they view as priced appropriately.  If a home is affordable and is appealing to most buyers (clean, uncluttered, in good repair, etc.), it will sell. 

Real estate that is not selling is property owned by people who are having a hard time letting go of what they think their home is worth or who will lose money if they sell at the market price.  The reality of realty is that home values are not nearly what most people thought they would be when they purchased their homes, whether they bought at the height of the market or while market prices were climbing five to ten years ago.

Are you curious about what your home is worth in today’s market?  If so, contact Michael Zimmerman for a free consultation.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Buyers, Real Estate, Sellers | March 18th, 2010

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Buying a Honolulu Home? Research the Neighborhood First


Some people say it is not wise to think of your home as an investment.  Whether you choose to think of your home as an investment or not, bear in mind it’s the largest asset owned in most households.  There are many things to consider when buying a home and getting to know the neighborhood you wish to buy in is quite important.  Clearly, many factors affect home appreciation, but if you do your research, selecting your home properly may increase your chances of earning a better return if you decide to sell at some point in the future.

Take some time to research the neighborhoods under consideration.  Aside from knowing the schools and amenities that are available, scrutinize the property price levels.  Do some streets hold more value?  Is one edge of the neighborhood closer to a more upscale neighborhood or is it closer to a less desirable neighborhood?  Traditional thinking says purchasing the least in the best neighborhood gives you the greatest return as each time a better home sells, your value rises as well.

Although inventory levels are lower than they were a year ago, there are still many good Honolulu condos and homes for sale.  It’s definitely in your best interest to personally investigate the neighborhood before you buy.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Buyers, Real Estate | March 14th, 2010

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Monthly Honolulu Real Estate Market Report via Email


Sign up for a free monthly Honolulu Real Estate Market Report via email.  This report features graphs and numeric tables showing the trends in:

  • number of single family home and condo sales
  • median sales prices of single family homes and condos
  • single family home and condo days on market (how long it takes to sell)
  • sales figures for all Oahu neighborhoods
  • inventory of single family homes and condos for sale
Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Buyers, Market Reports, Real Estate, Sellers | March 12th, 2010

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March 2010 Honolulu Condominium Market Report – Ko’olani


Summary
Ko’olani sales trends have been so good that in many cases, buyer choices are quite limited.  Sales are consistent and the number of apartments for sale continues its decline that began in mid-2008.  Certain floor plans are not available as I write and not much is available on higher floors.  Some apartments are priced above what the market will bear and their time on the market confirms that observation.  B
uyers should stand ready to act when something they’re looking for comes on the market. 

Koolani Apartments Listed vs. Sold Graph
 
The chart above shows the number of sales recorded each month vs. the number of apartments available for sale at the end of the month.  In the last six months, Ko’olani averaged just over 2 sales per month.  At that pace, it will take just over 6 months to sell the 11 apartments on the market.

Ko’olani Condominium
Address:  1177 Queen Street, Honolulu, HI 96814
Built:  2006
 

Schools
Elementary School:  Kaahumanu
Middle School:  Central
High School:  McKinley

Features
Conveniently located one block from the Ala Moana Shopping Center and just a few blocks from Ward Centers and the Nordstrom store located on Kapiolani Blvd.

Availability

Apartments in the building:  370
Apartments available for sale:  11
Average days on market to date:  91
Apartments listed for sale in the last 30 days:  4
Months of inventory available:  6.0
 
Sales
Apartments under contract in escrow:  3
Apartments sold in the last 90 days:  6
Average days on market:  91
Average price per square foot:  $648.11
Sales Price / List Price:  95%

Would you like to learn more about Ko’olani?  If so, contact Michael Zimmerman, the condominium expert.  Please visit my web site to view Ko’olani condos for sale, request special reports or search for other Honolulu condos for sale. 

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Ko'olani, Market Reports | March 10th, 2010

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Honolulu Real Estate Statistics – February 2010


The Honolulu Board of REALTORS® released resale figures for the month of February.  According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system, the statistics are:

Single Family Home Resales

  Number of Sales This Month Compared To Median* Sales Price This Month Compared To
Feb 2010 157   $570,000  
Jan 2010 162 -3.1% $597,500 -4.6%
Feb 2009 129 +21.7% $550,000 +3.6%

 

 

 

 

Condominium Resales

  Number of Sales This Month Compared To Median* Sales Price This Month Compared To
Feb 2010 231   $298,000  
Jan 2010 227 +1.7% $299,000 -0.3%
Feb 2009 160 +44.4% $297,000 +0.3%

 

 

 

 
*Median price means half the prices were above and half below the given price.

During February, sales of 157 single-family homes and 231 condominiums were reported through the Board’s MLS, an increase of 21.7 percent for single-family homes and an increase of 44.4 percent for condominiums, compared to the same month last year.  The median prices paid for island properties in the February was $570,000 for single-family homes and $298,000 for condominiums, an increase of 3.6 percent for single-family homes and an increase of 0.3 percent for condominiums from February 2009.

Market Reports | March 6th, 2010

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How and Why Honolulu Interest Rates Move


This video explains how and why Honolulu interest rates may move higher this year.

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Mortgage Issues | March 2nd, 2010

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Avoid Harbor Court (Honolulu) Rental Scams

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NOTE:  I have nothing to do with any web site offering property for rent.  I work solely with real estate property sales and I do not manage property.

In the last few months, I have been contacted by no less than six people asking me about the validity of a 37th floor rental at Harbor Court listed on Rentals.com.  Each person told the same story: the web site offers a large 37th floor, two bedroom apartment with stunning ocean views for rent.  And all this for only $1800/month (red flag: that is substantially below the market rate rent).  Each went on to say they could never reach the property manager directly by phone…he would always call back (red flag).  The property manager asked for the down payment and security deposit to be sent via Western Union (yet another red flag).

Four of the six called me before they sent money via Western Union; unfortunately, two did not.  I sincerely doubt they recovered their money.  Bottom line, if it sounds too good to be true, it probably is.  Please proceed with caution.

Read what Rentals.com has to say about Avoiding Scams and Fraud.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Harbor Court | February 26th, 2010

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Honolulu Home Owners: Do Market Opportunities and a $6,500 Tax Credit Make it a Good Time To Sell?

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The extended Home Owner Tax Credit may be a window of opportunity for some folks who have wanted to sell their home, whether to move up or to downsize, but the credit expires on April 30, 2010.

This $6500 tax credit is for current home owners who have owned and resided in their home for at least 5 consecutive years out of the past 8 years.

If you combine this tax credit with historically low interest rates and great values in the market place, it might be the right time to make your move.  However, this tax credit is only for a limited time and waiting too long may cause you to miss out on market opportunities that could benefit you.  You must have a binding purchase contract signed by April 30, 2010.

Each person’s situation is different.  I will be happy to meet with you and provide a no-obligation consultation to discuss your home’s current value as well as the prices of homes in your target range.  Don’t look back and wish you had sold your home instead of waiting.  There‘s no obligation to explore your options, so call Michael Zimmerman at 808-457-9683 today to schedule a meeting.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Real Estate, Sellers | February 24th, 2010

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February 2010 Honolulu Condominium Market Report – Nauru Tower

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Summary
Despite a sluggish Oahu economy, Nauru Tower sales really took off at the end of 2009.  That leaves very few apartments for buyers to choose from.  Nevertheless, there are a few high floor 2-bedroom apartments for sale and two parking stalls are also available.  In addition, there is a high floor 1-bedroom leasehold apartment for sale, but it is fairly expensive.

Nauru Tower Apartments Listed vs. Sold Graph

The chart above shows the number of sales recorded each month vs. the number of apartments available for sale at the end of each month.  As you can see, the number of apartments for sale steadily declined during the last year.  In the last six months, Nauru Tower averaged two sales each month and if that pace continues, it will take over 2.5 months to sell the 5 apartments on the market. 

Nauru Tower Condominium
1330 Ala Moana Blvd., Honolulu, HI 96814
Built: 1991

Schools
Elementary School: 
Kaahumanu
Middle School:  Central
High School:  McKinley

Features
Conveniently located across the street from the Ala Moana Beach Park and just one block from the
Ala Moana Shopping Center and Ward Centers.

Availability
Apartments in the building:  302
Apartments available for sale:  5
Average days on market to date:  90
Apartments listed for sale in the last 30 days:  0
Months of inventory available:  2.5

Sales
Apartments under contract in escrow:  2
Apartments sold in the last 90 days:  3
Average days on market:  20
Average price per square foot:  $743.09
Sales Price / List Price:  94%

Would you like to learn more?  Please visit my web site to view Nauru Tower apartments for sale or conduct your own Honolulu condo search Contact Michael Zimmerman for a no obligation consultation if you’re considering selling or buying a home or investment property.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Market Reports, Nauru Tower | February 20th, 2010

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Honolulu Home Buyers: $8,000 Tax Credit Expires April 30, 2010!

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NOW Is the Time to Make Your Move.  The 2009 First Time Home Buyers Tax Credit is expiring April 30, 2010.  This tax credit was expanded for the benefit of qualified home buyers (those who have not purchased a home within the last three years):

  • Allowed home buyers more time into the spring house-buying season to find their home, get loan approval and close the transaction.
  • The income limits were raised from $75,000 to $125,000 for single buyers and $125,000 to $225,000 for married couples.

With attractive Honolulu home prices and historically low mortgage rates, this is a good time to make your move.  If you didn’t find the right home in 2009, you still have time to take advantage of this opportunity.  Don’t delay; you must identify your home and have a binding purchase contract signed by April 30, 2010. 

Call Michael Zimmerman at 808-457-9683 to set up a free consultation to help you explore and maximize this opportunity.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Buyers, Real Estate | February 16th, 2010

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Fannie Mae Closing Cost Assistance and Appliance Incentive

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The Federal National Mortgage Association, also known as Fannie Mae, is offering a 3.5% incentive** for buyers who purchase a Fannie Mae-owned home between January 28 and April 30, 2010.  Buyers may receive up to 3.5% of the final sales price for:

  • Closing costs
  • The purchase of new Whirlpool® appliances by Fannie Mae; or
  • A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%.

To be eligible for this incentive:

  • Offers must be accepted on or after January 28, 2010
  • Property sales must close before May 1, 2010
  • Buyers must be owner-occupants (excludes investors)

**Lenders may impose their own limitations on the use of the 3.5% incentive, so buyers should consult their lenders for guidance.

There process of buying a home from Fannie Mae is different from that of buying from a private citizen.  These Frequently Asked Questions provide more detail.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Buyers, Real Estate | February 14th, 2010

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Are You Considering a Honolulu Short Sale?

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Disclaimer:  Consult your attorney and your CPA to ensure you fully understand the ramifications of a short sale.

Given the state of our economy, it appears short sales are becoming more popular as unemployment drives some folks toward foreclosureHawaii foreclosures rose in 2009, destroying owners’ credit in the process.  A short sale may have helped minimize that damage.  For a homeowner to qualify as a short sale candidate, generally, the following must be true:

  1. The homeowner is in default - this means the owner is at least 30 days past the last day of most lenders’ grace period.
  2. The homeowner has little or no equity in the property - the market value of the home is less than or about equal to the amount owed to the lender(s).
  3. The homeowner has a legitimate hardship - the owner must be able to prove that a real hardship caused them to fall behind in their payments.  Examples include:
  • temporary or permanent job loss
  • significant pay cut
  • divorce
  • illness or death in the family
  • increased property taxes
  • decrease in property value
  • increase in payment due to an Adjustable Rate Mortgage (ARM) resetting

If you are considering a Honolulu short sale, contact Michael Zimmerman for a free consultation.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Sellers, Short Sales | February 12th, 2010

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February 2010 Honolulu Condominium Market Report – Harbor Court

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Summary
It’s been more than two years since we’ve seen this many sales at Harbor Court.  Three apartments sold in the last quarter of 2009:  a penthouse sold for $800,000 and two other apartments sold for $560,000 and $545,000 (consistent with the sale at $550,000 in August 2009).  So, we’ve seen three non-penthouse apartments sell in the $550,000 range in the last five months.  That appears to be what a reasonable buyer is willing to pay in today’s market.  Further evidence of that is seen in the number of days higher priced Harbor Court apartments stay on market.  Apartments priced over $600,000 stay on the market for several months (some have been on the market for years) and ultimately sell for much, much less.

Harbor Court Apartments Listed vs. Sold Graph

The chart above shows the number of sales recorded each month vs. the number of apartments available for sale at the end of the month.

Harbor Court Condominium
66 Queen Street, Honolulu, HI 96813
Built: 1994

Feature
Conveniently located just a few blocks from Chinatown and right across the street from Aloha Tower Marketplace.

Schools
Elementary:  Royal
Middle:  Central
High:  McKinley

Availability
Apartments in the building:  120
Apartments available for sale:  1
Average days on market to date:  91
Apartments listed for sale in the last 30 days:  0
Months of inventory available:  1.5

Sales
Apartments under contract in escrow:  0
Apartments sold in the last 90 days:  1
Average days on market:  121
Average price per square foot:  $410.56
Sales Price / List Price:  83%

Contact Michael Zimmerman if you have a specific question about Harbor Court.  Please visit my web site to view Harbor Court apartments for sale, conduct your own Honolulu condo search or request special reports for home sellers or buyers.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Harbor Court, Market Reports | February 8th, 2010

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New Mortgage Consumer Protections Will Impact Your Honolulu Home Closing Timeline

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The Federal government enacted three separate initiatives during the last eight months designed to help the home buyer make better financing decisions.  These initiatives impose requirements that impact the loan closing timeline and affect the closing process for lenders and settlement agents.  The three initiatives are:

May 2009 Home Valuation Code of Conduct (HVCC) - ensures borrowers have sufficient notice of appraisal content and promotes the accuracy of appraisals by shielding appraisers from undue influence.

July 2009 Housing and Economic Recovery Act / Mortgage Disclosure Improvement Act (HERA / MDIA) - protects borrowers by making them more informed and confident in their home financing choices by specifying timing in regard to initial disclosures, fee collection and final disclosures.

January 2010 RESPA (Real Estate Settlement Procedures Act) Reform - intended to help borrowers avoid surprises at closing by placing tolerance levels on all charges for services associated with obtaining the mortgage where the vendor is not selected by the borrower.

Bottom line, if you are financing your home purchase, these new procedures make 30-day closings a thing of the past.  45 days will become the standard time to close.

More details about RESPA Reform

Contact Michael Zimmerman if you need a referral to a reliable mortgage professional.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Mortgage Issues, Real Estate | February 4th, 2010

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Honolulu Real Estate Statistics – January 2010

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The Honolulu Board of REALTORS® released resale figures for the month of January.  According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system, the statistics are:

Single Family Home Resales

  Number of Sales This Month Compared To Median* Sales Price This Month Compared To
Jan 2010 162   $597,500  
Dec 2009 265 -38.9% $550,000 +8.6%
Jan 2009 122 +32.8% $539,500 +10.8%

 

 

 

 

 

 
Condominium Resales

  Number of Sales This Month Compared To Median* Sales Price This Month Compared To
Jan 2010 227   $299,000  
Dec 2009 349 -34.9% $300,000 -0.3%
Jan 2009 159 +42.8% $305,000 -2.0%

 

 

 

 

 
*Median price means half the prices were above and half below the given price.

During January, sales of 162 single-family homes and 227 condominiums were reported through the Board’s MLS, an increase of 32.8 percent for single-family homes and an increase of 42.8 percent for condominiums, compared to the same month last year.  The median prices paid for island properties in the January was $597,500 for single-family homes and $299,000 for condominiums, an increase of 10.8 percent for single-family homes and a decrease of 2 percent for condominiums from January 2009.

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Market Reports | February 2nd, 2010

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Free Oahu Feng Shui Lectures

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The Chinese New Year is just two weeks away.  To help celebrate, Mr. Clear Englebert, author of Feng Shui for Hawaii, will give free feng shui lectures at four Oahu libraries.

As reported in the Honolulu Advertiser, these lectures will focus on the different schools of feng shui and explain chi energy and how to attract and maximize its positive flow.  Englebert explains why some energy is considered negative and how to deflect it.  He will also discuss furniture selection/placement, locating powerful spots in a room, harmonizing your home with the surrounding land and using feng shui in a tropical garden.

The lecture dates, times and locations are:

Tuesday, Feb. 2, 6:30pm at the Kapolei Library (693-7050)

Thursday, Feb. 4, 6:30pm at the Kailua Library (266-9911)

Saturday, Feb. 6, 2:30pm at the Mililani Library (627-7470)

Sunday, Feb. 7, 2:30pm at the Kaneohe Library (233-5676)

Contact Michael Zimmerman if you need a referral to a Certified Feng Shui Practitioner.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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General Interest | January 29th, 2010

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The Government Tax Credit Also Applies to Honolulu Homeowners Wishing to Downsize

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The tax credit is not just for those buying a bigger home, it also works for those wanting to downsize

When the government extended and expanded the First Time Home Buyer Tax Credit, many people thought the expansion applied only to homeowners moving to a more expensive home.  The expansion includes those who have owned a primary residence and lived in it for at least five consecutive years out of the last eight years.  If current homeowners want to downsize, they may qualify for the tax credit, even if the new home costs less than the original residence they are selling.

Your income and new home purchase price may affect the amount of credit you are entitled to, so be sure to check with your tax advisor.

If you have been considering selling your property and moving into a smaller home, please consider if it’s the right thing for you before the tax credit expires.  Place your new home under contract by April 30, 2010 and close by June 30, 2010 and you may have a few extra dollars in your pocket.

Read more about the First Time Home Buyer Tax Credit.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Real Estate | January 28th, 2010

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New FHA Lending Policies Begin in April 2010

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The Federal Housing Administration (FHA) announced home loan changes that will become effective April 5, 2010.  The measures are intended to help the FHA better manage its risks, while continuing to provide affordable, responsible mortgage products that will support the housing market’s recovery.

Here’s what’s changing:

1.  Increased mortgage insurance.  The mortgage insurance premium will increase from 1.75% to 2.25%.  This change will add some cost to purchasing a home, but will not overburden consumers since the mortgage insurance is paid over the life of the loan, rather than upfront at closing.

2.  New down payment and credit score requirements.  Buyers who have a credit score of at least 580 may still be able to purchase a home with a 3.5% down payment, but those with credit scores less than 580 will be required to put down at least 10%.  This change is designed to help the FHA balance its risk, while providing affordable down payments for consumers with good credit history.

3.  Reduced seller concession.  Home sellers may offer the home buyer 3% to help defray closing costs, as opposed to 6% under the previous policy.

To find out if an FHA loan is right for you or if an FHA loan is even possible on property you’d like to purchase, contact Michael Zimmerman for referral to a great mortgage professional.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Mortgage Issues | January 26th, 2010

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Honolulu’s Rising Interest Rates: The Impact of Waiting

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An article in Newsweek titled If You Don’t Buy a House Now, You’re Stupid or Broke reminded me of a blog post I wrote in June 2008 titled Should I Wait for Honolulu Home Prices to Drop?

The main point of both articles is this:  interest rates may have a greater impact on what you ultimately pay for a home in the long run than small changes in the initial purchase price.  Put another way, a .50% rise in interest rates costs you more than the $10 or $20 thousand you might save by waiting to purchase your home.  Also, don’t forget to factor in the potential loss of the tax credit offered by the government.

Looking at it from the buyer’s affordability perspective, a trusted Honolulu mortgage advisor wrote, “if rates go up by .50%, [the buyer] can afford a property that is 5% lower in price.”

Each individual home buyer’s situation is different and he/she must decide what is best for him/her.  If you’d like a free consultation or referral to a great mortgage professional, please contact Michael Zimmerman.

Contributed by Michael Zimmerman
Direct: 808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Buyers, Mortgage Issues, Real Estate | January 24th, 2010

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January 2010 Honolulu Condominium Market Report – Keola Lai

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Summary
As you can see below, a steady number of Keola Lai sales have driven the number of apartments on the market down to one third of what they were just six months ago.  That’s great news for the few owners selling their apartment.  However, that’s not good news for buyers because they have very few choices:  two of the six apartments on the market are Penthouses selling at $2.3 million each.

Keola Lai Apartments Listed vs. Sold Graph

The chart above shows the number of sales recorded each month vs. the number of apartments available for sale at the end of the month.  In the last six months, Keola Lai averaged 2.5 sales per month.  At that pace, it will take less than 3 months to sell the 6 apartments listed for sale.

Keola Lai Condominium
600 Queen Street, Honolulu, HI 96813
Built: 2008

Schools
Elementary:  Royal
Middle:  Central
High:  McKinley 

Availability
Apartments in the building:  350
Apartments available for sale:  6
Average days on market to date:  126
Apartments listed for sale in the last 30 days:  0
Months of inventory available:  2.4 

Sales
Apartments under contract in escrow:  1
Apartments sold in the last 90 days:  6
Average days on market:  108
Average price per square foot:  $616.88
Sales Price / List Price:  97%

Would you like to learn more about Keola Lai?  If so, contact Michael Zimmerman, the condominium expert.  Please visit my web site to view Honolulu condos for sale or request free reports for buyers or sellers.


Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Keola Lai, Market Reports | January 20th, 2010

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