Maui June 2011 Sales Statistics

Brief Maui Statistics Overview:

June’s Sales Volume – June’s Residential Sales rose to 81 homes sold, while Condo Sales declined to 101 units sold. Land sales came in at 13 lots sold.

June’s Median SALES prices – Home median prices rose to $429,000, while Condo median prices dipped to $295,000. Land median price rose to $299,000.

Days on Market for Residential homes = 141 DOM, Condos = 147 DOM, Land = 145 DOM.
(General DOM Note: this is the average DOM for the properties that SOLD. If predominantly OLD inventory sells, it can move this indicator upward, and vice versa. RAM’s Days on Market are calculated from List Date to Closing Date [not contract date]. As such, it includes approximately 60 days of escrow time.) Also – Short Sales transactions can often take 4-6 months to close thereby extending the
marketplace’s average DOM.

“Year to Date Sales” numbers only compare January-June 2011 to January-June 2010. Short timeframe (monthly) views do not necessarily reflect the longer timeframe trends.
Year to Date: Comparing January-June 2011 to January-June 2010 – Residential unit sales rose (+4%), average sold price = $732,569 (-4%), median price = $445,000 (-5%) and total dollar volume sold = $324,528,034 (-1%). This reflects the bump up last year due to 2009-2010 Federal Tax Credit programs and 2011 numbers will probably catch up as the year progresses. Condo unit sales decreased (-3%), average sold price = $527,534 (-30%), median price = $325,000 (-24%). Total Condo dollar volume sold = $340,259,146 (-33%).
Land – NOTE: Land Lot sales are such a small sampling that statistics in this property class are not necessarily reliable indicators. Land lot sales decreased (-3%), average sold price = $643,744 (+20%), median price = $315,000 (-30%), Total dollar volume = $44,418,351 (+17%).

Also, total sales for immediately past 12 months: Residential = 830, Condo = 1,125, Land = 124.

July 6, 2011 – Active/Pending/Contingent status inventory:
July June May April Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July
Homes 869 917 935 958 964 953 963 974 976 1,001 981 994 1,008
Condos 1,124 1,159 1,203 1,305 1,331 1,379 1,383 1,371 1,347 1,394 1,455 1,503 1,412
Land 515 532 547 554 557 566 569 601 596 601 620 604 601

Current Absorption Rate base on this month’s Active inventory divided by June Sales is:
Residential = 10.7 months, Condo = 11.1 months, Land = 39.6 months.

IN A NUT SHELL…… the good, the bad….. AND THE ROAD AHEAD ……
Strong buyer-showing activity is now evidenced in actual reported sales. Residential and Condo unit sales for March – June show sustained increase over the previous six months. The next few months will reveal if this is just an uptick or a trend that lasts. Inventories have declined 13-20% over the past 12 months. Many short sales and REO (bank owned) properties will need to be absorbed as sales before we can move ahead to a more normal marketplace. Interest Rates are remaining near historic record lows which may help motivate would-be Buyers to go ahead and buy IF they can qualify. Current World and US events will have ripple effects on cost of living, consumer confidence, and eventually our Real Estate Market.

FOR SELLERS: Sellers who don’t really need to sell (just “fishing?”) should stay off the market, and clear the marketplace for those who REALLY have to sell. UNLESS- you are motivated to Upsize, Downsize or Upgrade – While selling now will net less, your next property will cost less. Sharpen your pencil, talk to your CPA and Realtor® to explore the hidden benefits or consequences. Make no assumptions that will sting later. To be successful, Sellers need to beat competing properties with better property condition, REALISTIC pricing, good marketing, and flexible, creative terms (Seller Second Loan, Agreement of Sale, Lease-with-option-to-buy, and Sale-with-lease-back to seller). Days on Market figures show that properties priced right will sell in a reasonable timeframe. “Priced Right” is still the determining factor.

BEST Deals are selling, everything else is getting old.
Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to encourage knowledgeable offers from realistic Buyers. This can prevent unanticipated escrow fallout or Buyers whittling your price down during the transaction when previously unknown facts come to light. Unrealistic Sellers continue to be ignored by the market and miss current opportunities that later become woefully apparent. They may even end up in a Short Sale or Foreclosure situation that could have been avoided.

FOR BUYERS: Low interest rates may start to inch up. Buyers should get Pre-Approved so they can shop in confidence (fewer last minute disappointments due to non-funding loans). More “short-sales” and foreclosures are happening in the marketplace, yet they can be less of a bargain than they seem, requiring more hurdles to leap and more time (often 4-6 months) to close, if at all. Be prepared, but BE REALISTIC. Lenders are much more stringent in requirements for loan approval.

First-Time Home Buyers – Many programs are available….. Attend a First-Time Home Buyers workshop, get familiar with the process, get qualified/approved, do your homework to get your own home. Many current owners never thought they would be able to own until they attended a workshop, discovered they could own a home, and are glad they did.

This low point in the market is your rare chance, so check it out carefully.
Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to different conclusions that the overall view. Maui’s market place is much smaller than Oahu’s, and a few high or low sales have a greater effect on the
statistical numbers without necessarily indicating a big market swing one way or another.

Information provided by the Realtors’ Association of Maui (RAM)
If you have any questions or would like specific information on a region of Maui or a particular complex or property please contact The Hansen Ohana directly to discuss your individual real estate needs and goals. (808)280-2764 or 1-800-291-5535

Airlines give state tourism a lift

Hawaiian expands its interisland fleet and plans to add 20 flights and hire more workers

By Dave Segal
Article from: Star-Advertiser

Hawaiian Airlines will boost its fleet with the addition of three Boeing 717-200s, which will provide more flights between Honolulu and the neighbor islands.

Hawaiian Airlines, the dominant carrier in the interisland market, will add three Boeing 717-200s to its fleet later this year which will provide about 20 more flights per day between Honolulu and the neighbor islands.

The company said Thursday it expects to hire an additional 40 to 50 pilots, flight attendants and ground staff to support the increased operations.

“With our increasing service to Hawaii from Asia, demand for our interisland flights during peak hours of the day and during popular travel periods has never been higher,” Hawaiian CEO Mark Dunkerley said. “Adding these aircraft will give us the ability to serve more customers during these periods.”

Hawaiian, which carried 83 percent of all interisland passengers last year and provided 81 percent of the seats last month according to state data, said it expects to take delivery of the three leased aircraft in September, October and November. It said the increased service will begin in October. The airline said service will be expanded to Kahului, Lihue, Hilo and Kona during peak travel periods. The 717s seat up to 123 passengers each.

“The increased capacity will help to support the HTA’s goal to promote the Hawaiian Islands and encourage multi-island travel that will boost visitor arrivals and spending on the neighbor islands,” Hawaii Tourism Authority CEO Mike McCartney said.

In addition, Hawaiian said it has purchased its existing fleet of 15 leased 717s from Boeing Capital Corp. in a refinancing transaction that reduces its fleet costs over the long term. The airline also signed multiyear leases with Boeing Capital for the three additional 717s. Terms of the deals were not disclosed.

“Hawaiian’s decision to expand its fleet and move from operator to owner is a further vote for the world’s best 100-seat airliner by an experienced and valued customer,” said Jordan Weltman, Boeing Capital president for the Americas region.

The airline also has in its fleet 17 Boeing 767-300ERS and four Airbus A330-200s. Those planes are used for mainland and international flights. The 767s seat up to 264 passengers, and the A330s can carry 294 passengers.

STRETCHING ITS WINGS
Hawaiian Airlines commands a majority of the interisland market:
INTERISLAND PASSENGERS IN 2010
Hawaiian Airlines 83%
Go! 9%
Island Air 5%
Mokulele 1%
Japan Airlines 1%
Pacific Wings 0%
Trans Air 0%
Big Island Air 0%
Source: State Department of Transportation Airport Division

INTERISLAND SCHEDULED AIRLINE SEATS FOR JUNE:

Hawaiian Airlines 80.9%
Go! 8.5%
Island Air 7.7%
Mokulele 1.5%
Pacific Wings 1.4%
Source: OAG Aviation

Happy Canada Day!

The Hansen Ohana extends are best wishes for a happy and safe Canada Day to our Canadian friends, clients and family. As many of you know two of our ohana were born and raised in Canada – it’s another reason we feel we are well suited to best meet the needs of Canadian clients. Clients often comment on how smooth the process is and how comfortable we are able to make them during the property purchase or sale process. In addition to our vast experience with international buyers and sellers in general and multigenerational local industry knowledge we have team members who understand and have been through the Maui home buying and selling process from Canada first hand.

Please call or email us anytime to discuss questions you might have or to discuss your property search goals and dreams.
1-800-291-5535 or (808)280-2764
Clinthansen33@gmail.com or Dad@MauiRealEstate.NET

A little trivia about Canada Day (formerly known as Dominion Day):

Canadian Confederation, the birth of Canada as a nation, took place on July 1, 1867, and originally included the provinces of Nova Scotia, New Brunswick, Ontario and Quebec. There are now 10 provinces and three territories in Canada.

Province / Territory Date Entered Confederation
Alberta September 1, 1905
British Columbia July 20, 1871
Manitoba July 15, 1870
New Brunswick July 1, 1867
Newfoundland March 31, 1949
Northwest Territories July 15, 1870
Nova Scotia July 1, 1867
Nunavut April 1, 1999
Ontario July 1, 1867
Prince Edward Island July 1, 1873
Quebec July 1, 1867
Saskatchewan September 1, 1905
Yukon June 13, 1898

We’re all familiar with the red and white Candian flag with the maple leaf in the middle, but it wasn’t until 1965 that Canada had a flag of her own.

Happy Canada Day!

Report puts isle beaches in top 4 for clean water

Only 3 percent of shoreline samples exceeded health standards last year

By Allison Schaefers
Article from: Star-Advertiser

Hawaii ranks No. 4 in the nation in an environmental group’s annual survey of ocean water quality analyzed from government data in 30 coastal states.

A report indicating that Hawaii beachgoers swam in some of the nation’s cleanest ocean water last year brings bragging rights for residents and the tourism industry.

Hawaii had the fourth cleanest beach water of 30 coastal states surveyed in the 21st annual beach water quality report released Wednesday by the Natural Resources Defense Council. Only 3 percent of Hawaii’s water samples exceeded health standards in 2010, the environmental group said.

“Clean beach water is not only good for public health, it supports healthy coastal economies that generate billions of dollars and support millions of American jobs,” said David Beckman, director of the NRDC Water Program.”

Mike McCartney, Hawaii Tourism Authority president and chief executive, characterized Hawaii’s ranking as “priceless,” especially as the visitor industry heads deeper into summer.

“It’s good news for Hawaii and it’s good news for the visitor industry,” McCartney said. “It will enhance the momentum that we want to continue in the market.”

Water quality ratings in the NRDC’s report, which analyzes government data on beach water testing results, varied by island and beach. While only 1 percent of Oahu’s samples exceeded health standards, rates were 2 percent for Maui and Hawaii and 8 percent for Kauai.

The report singled out three Kauai beaches as having water samples that exceeded state standards. They were Lumahai Beach with 29 percent of samples, Kalihiwai Bay, 27 percent, and Waimea Recreation Pier State Park, 24 percent.

“All three of these beaches are near rivers and sometimes get runoff,” said Sue Kanoho, director of the Kauai Visitors and Convention Bureau. “The good news is that we have not had any complaints about people going into these waters and getting sick and the (state) Department of Health has not cited any problems.”

Other Kauai beaches such as Anahola, Poipu and Brennecke received good reports, Kanoho said.

Hanauma Bay and Kuhio Beach near the Royal Hawaiian and the Westin Moana Surfrider were among examples of Oahu’s cleanest beaches.

Settling ponds help divert runoff and keep Hanauma Bay clear, said Alan Hong, who was its longtime property manager before retiring on June 1.

“These ponds catch the parking area and lawn runoff and filter out silt and trap chemicals,” Hong said.

Ahmed Maqbool of Fremont, Calif., who was playing in the ocean near Waikiki on Wednesday, said Hawaii’s clean beaches are a strong selling point.

“For me, this beach is much cleaner than others,” Maqbool said. “San Francisco is a beautiful city, but some of its beaches are dirty and you wouldn’t want to swim there.”

California beaches were the 22nd worst for pollution standards among coastal states, the NRDC report said.

Beckman said he uses the report to make decisions about where to swim with his family and that the public should, too.

“Water quality matters,” he said. “You don’t want to go swimming and end up with a rash or something worse.”

Visitor spending up $50.9 million in May

Though Hawaii arrivals showed only marginal gains, the amount paid out rose 5.9 percent from a year ago

By Allison Schaefers
Article from: Star-Advertiser

Visitors spent an average of $10 more a day in May than in May 2010, the Hawaii Tourism Authority reported Tuesday. Last month, 553,505 visitors came to Hawaii and spent $912.3 million.

Hawaii’s visitor industry continued rebounding in May, and the momentum is expected to build through summer.

VISITOR ARRIVALS
The number of visitors arriving in Hawaii by air in May with the percentage change from the same month last year:
VISITORS PCT.
Domestic 411,758 2.8%
International 137,101 -6.5%
Total 548,859 0.3%
Grand total* 553,505 0.6%

BY ISLAND
Oahu 345,147 0.3%
Kauai 81,632 5.5%
Lanai 6,105 6.8%
Maui 161,039 0.6%
Molokai 3,587 -2.3%
Big Island 96,504 1.8%
* Includes ship arrivals

Although total visitor arrivals remained essentially flat in May due to the continued drop in Japan arrivals, total visitor spending grew 5.9 percent, the Hawaii Tourism Authority said Tuesday. The $50.9 million gain from May 2010 was the 13th consecutive month of increased visitor spending, HTA officials said. The 553,505 visitors that came to Hawaii in May spent a total of $912.3 million. Average daily spending rose by $10 to $185 a day.

The numbers show that the industry is regaining strength in 2011, said Mike McCartney, HTA president and chief executive.

“We anticipate activity to remain strong through the second half of the year, with increased airlift out of Asia and Oceania, and the establishment of the China Eastern Airlines service from Honolulu to Shanghai beginning in August,” McCartney said. “Our goal is to build on this momentum so that tourism can continue to drive Hawaii’s economic recovery.”

While continued effects from the March 11 earthquake and tsunami in Japan depressed tourism in the second quarter, numbers from elsewhere were not as bad as anticipated, said Shari Chang, senior vice president of marketing and revenue management at Aston Hotels & Resorts.

In May, arrivals from Canada grew 19 percent helping to offset a 17.1 percent drop from Japan and minimal gains from other markets, according to the HTA. Arrivals from Hawaii’s core U.S. West market grew 0.8 percent, while arrivals from the U.S. East rose 1.8 percent.

SHOW ME THE MONEY
The monthly visitor expenditures of visitors to Hawaii and the percentage change from the year-ago period.
2011
Month Spent Change
May $912.3M +5.9%
April $920.7M +20.2%
March $980.7M +11.8%
February $1.01B +18.7%
January $1.18B +19.8%
YTD total $5.01B +15.3%

2010
Month Spent Change
December $1.11B +17.9%
November $976.0M +30.4%
October $961.5M +24.7%
September $880.2M +22.2%
August $1.08B +30.0%
July $1.11B +23.3%
June $948.9M +16.1%
May $861.4M +15.9%
April $765.8M -0.7%
March $877.3M +12.0%
February $853.5M +0.8%
January $985.8M +4.1%
YTD total $11.4B +16.2%
Source: Hawaii Tourism Authority

For the first five months of the year, overall visitor spending was up 15.3 percent to $5 billion, and total arrivals grew by 6.7 percent to about 2.96 million visitors, HTA reported.

“Most of us are cautiously optimistic,” Chang said. “Moving into summer, we were concerned about gas and oil prices. But those seemed to have settled, and customers are adapting.”

Elaine and Doug Walker, who were walking Waikiki Beach on Tuesday with their 4-year-old daughter, Elise, said that they used airline points to offset higher fares to Honolulu. They also flew from Bellingham, Wash., instead of Seattle, Elaine Walker said.

“They added a new nonstop and offered fares that were about $160 cheaper,” Elaine Walker said. “It pays to shop around.”

Travelers responded strongly to discount summer specials launched in April and May by Pleasant Holidays LLC, Hawaii’s largest wholesaler.

“June was up by double digits,” said Jack Richards, Pleasant’s president and CEO. He said he expects July will see the same increase.

In the next day or so, Pleasant will launch specials for August travel, which is coming in slow, Richards said.

“These are probably going to be the best Hawaii prices of the year,” he said.

Summer travelers will have their pick of hotel values, especially in Waikiki and in Kona, said Barry Wallace, executive vice president of hospitality services for Outrigger Enterprises.

While hoteliers have enjoyed some summer rate growth, Wallace said the five or so large group properties in Waikiki that lost the most Japanese business are offering specials, hindering rate growth at other properties. Some Kona hotels are still recovering from the loss of Japan Airlines flights, he said.

“Most years, if you waited until now to book Hawaii, you’d have a hard time,” Wallace. “This year, you’ll not only get a room, but chances are that you’ll get a great rate, too.”

None of the hotels are discount crazy like they were at the bottom of the market; however, travelers still can come away with a deal, Chang said.

“There are some really strong packages out there,” she said. “Hotels don’t want to advertise really low rates, so they’ll fold them into opaque channels like Priceline where it’s harder for consumers to see them.”

Reasonable rates encouraged the Mickels family of Fort Worth, Texas, to book a long-awaited Oahu trip, said Kim Mickels, who was sunbathing Tuesday as her children enjoyed Waikiki’s sand and surf.

“We’ve been wanting to come for about 10 years,” Mickels said. “We thought prices were very reasonable.”

GAINING STRENGTH
The monthly total and percentage
change in visitor arrivals to Hawaii.
2011
Month Arrivals Change
May 553,505 +0.6%
April 581,324 +5.3%
March 633,365 +4.2%
February 593,018 +11.7%
January 597,487 +12.2%
YTD total 2,958,699 +6.7%

2010
Month Arrivals Change
December 633,730 +9.6%
November 577,540 +18.2%
October 574,425 +13.6%
September 538,516 +8.9%
August 680,496 +11.8%
July 680,743 +9.0%
June 625,522 +13.6%
May 549,954 +6.5%
April 552,059 +1.9%
March 607,709 +9.3%
February 531,094 +0.7%
January 532,737 +2.0%
YTD total 7,084,525 +8.7%
Source: Hawaii Tourism Authority