March 2011 eNews
Compliments of Anne Diola at Old Republic Title & Escrow

THE BUZZ

The word for spring may be “Buy Now.” Favorable housing affordability conditions are having a positive effect on the real estate market. Statistics released last month show that existing-home sales increased 2.7% from December to January of this year. Even more impressive is the fact that real estate sales activity rose 5.3% from January 2010 levels. A recent NAR survey for January 2011 gives more insight into the market:
29% of purchases were made by first-time home buyers
23% were made by investors
48% were made by repeat buyers
Cash sales rose to 32% of all transactions
The Western region of the U.S. led real estate gains:
In the West, sales rose 7.9%
In the South, sales rose 3.6%
In the Midwest, sales rose 1.8%
In the Northeast, sales fell 4.6%
Historically, real estate enjoys a positive spurt in the spring. One thing buyers face now are more stringent lending standards. Lawrence Yun, Chief Economist for the National Association of Realtors, said, “There are abnormally high levels of all-cash purchases due to unnecessarily tight credit.” It is important to get pre-qualified to take advantage of the deals available. There may never be a better time to buy.

JUST ASK
Q: What is this trend of “man-caves” and “mom-caves”?
A: Most men have a designated space at home for their manly pursuits. They claim that space as their “man-cave.” It could be a workshop in the garage, a basement game room, or a book-filled den. Women are starting to follow suit by staking out a space of their own. Elaine Griffin, a designer with Home Goods, calls it a “functional, restorative place where the mom nurtures herself.”
This space could be an extra bedroom used for scrapbooking, sewing, blogging, or reading. Kim Mules, an HGTV designer, says it can also be as simple as a corner in a room designated as a woman’s personal area, furnished with a comfortable chair, a side table and a reading lamp.
When I show potential buyers a home, they are trying to envision how they would live there. Finding extra spaces for the “man and the mom” makes a home more desirable.

MY TOWN
On March 17th, thousands of people flock to church, a local pub or the family dining room to celebrate St. Patrick’s Day. The origins of St. Patrick’s Day hail back to the 4th century when a 16-year-old man named Patrick from a wealthy British family was kidnapped by Irish pirates and taken to Ireland as a slave. He escaped, claiming later in confession that he was told in a vision by God to flee captivity to the coast where he’d find a boat to take him back to Britain. After returning to England he began his pursuit to become a priest.
In 432, Patrick returned to Ireland as a bishop to share Christianity with the Irish people who were mostly polytheistic at the time. According to Irish legend, he used the three-leaf shamrock to explain the Christian doctrine of the Trinity. He spent the balance of his adulthood alongside chieftains and tribes in Ireland until his death in 461. By the ninth and tenth centuries, St. Patrick’s Feast Day was being celebrated by the Irish throughout Europe on the anniversary of his death and was later put on the Catholic liturgical calendar. St. Paddy’s Day celebrations have included festivities and parades in the United States since 1737.

FYI
DIY is short for “do-it-yourself” – a term used to identify projects done without the help of a professional. If you’re a DIYer, painting (especially interiors) is something you can tackle without a professional’s help. But to start, you’ll need a good knowledge of the products out there.
Water-based latex paints are by far the most popular on the market. They’re less likely than oil-based paints to yellow or fade, they dry much quicker, clean up with soap and water and are low in VOCs (volatile organic compounds – the bad stuff that’s in paint fumes). Manufacturers are now making eco-friendly latex paints with zero VOCs – better for you, better for the environment.
Alkyd or oil-based paints are still revered by purists for their superior finish in a glossy sheen. These paints aren’t as prone to flake or peel and are more durable than latex. They may be preferable for areas that receive a lot of wear and tear, such as the exterior and floors of your home. But their fumes are noxious, requiring the use of a breathing mask when applying in closed-in areas, and you need a solvent, such as turpentine, to clean the paint from brushes and pails. Furthermore, environmental regulations are making them harder to purchase in many states. Paint manufacturers are reformulating them to keep in step with new laws, which can compromise the qualities that customers most appreciate about oil-based paints, or phasing them out altogether.
Next month we’ll cover the different kinds of paint sheens and their uses.

Contact Info:
Anne Diola
Real Estate Marketing Specialist
Old Republic Title & Escrow of Hawaii
33 Lono Ave, Ste 195
Kahului, HI 96732
W: (808) 281-8430
M: (808) 281-8430
adiola@ortc.com

Hawaii Real Estate and the Tourism Turnaround

The past few years for Hawaii real estate and tourism markets have been a bit of a roller coaster ride. However, the stomach-turning twists and heart-dropping falls seem to be coming to an end. The Hawaii real estate and tourism markets have docked for a breather and begun to climb back to the top.

It’s hard to believe that people would choose not to visit the natural beauty of this Pacific Ocean paradise. But, a tumultuous, unpredictable economy forced many would-be tourists to make other vacation plans. Undoubtedly, Hawaii, along with many other tropical vacation spots, suffered greatly at the hands of an unforgiving economy.
However, with the economy showing some promise, Hawaii real estate and tourism are witnessing quite the turnaround. Of course, though, it’s more than a promising economy that has people returning to the shores of Hawaii. It’s a combination of things.

Escape from Winter Chills

Over the past few months, the Midwest and East Coast of the United States has been socked with snow and frigid temperatures. Between pesky ice patches and a growing case of cabin fever, it’s no surprise that people are flocking to warmer pastures.

Promotions

If the beauty of Hawaii wasn’t a draw in itself, individuals like Scott Caan, Michael Vick, and President Obama, have glorified the island nation. Between the rival of Hawaii Five-O, a popular Pro Bowl, the public vacation of President Obama, Hawaii is right staring the American public right in the face.

Safety

Hawaii offers a tropical escape without having to technically leave the country. Instead of traveling to crime-ridden island nations, people can genuinely experience serenity without looking over their shoulders.
The tourism turnaround in Hawaii can’t be attributed to one factor. But, regardless, tourism is growing and this has made Hawaii real estate a hot investment. For more information about Hawaii real estate and tourism we invite you to browse our site and contact us if you have any further questions.

1,607 whales sighted

February 28, 2011
Article from: The Maui News

MAALAEA – Volunteers and researchers on Maui tallied 1,607 sightings of humpback whales Saturday, a 33 percent increase from last year, the Pacific Whale Foundation reported.

Last year’s total was 1,208 humpbacks. There were 12 counting stations in the Great Maui Whale Count.

Greg Kaufman, founder and president of PWF, which organized the count, said the sighting conditions were “fantastic,” with calm seas and light winds.

“Because we have conducted the count systematically at the same time each year, it provides a valuable look at Hawaii’s winter whale population. In general, we are seeing evidence of a growing number of whale sightings in recent years,” Kaufman said in a news release.

He said the increase in sightings correlates to research that shows the humpback whale population in the North Pacific increasing at a rate of 7 percent or 8 percent each year.

An estimated 20,000 humpback whales live in the North Pacific, and about 60 percent of that population is believed to come to Hawaii each year to mate, give birth and care for their young, a release said.

The counting stations were positioned along Maui’s south and western shores, in an area extending from Makena to Kapalua. There also was a station at Hookipa Beach Park on Maui’s north shore.

Last year’s count took place a week later than usual because of a tsunami warning on the originally scheduled day. In 2009, 1,010 whale sightings were recorded. In 2008, 1,726 were tallied on a day with ideal conditions such as Saturday’s.

Of Saturday’s sightings, 154 were calves, compared to 149 sighted last year.

Puu Olai in Makena recorded the most whale sightings with 311 during the counting window, which was open from 8:30 to 11:55 a.m.

The count was conducted by 100 volunteers who worked alongside Pacific Whale Foundation researchers and staff and was done along lookout posts from the shorelines.

The count is part of the Maui Whale Festival, a series of whale-related events taking place from November through mid-May.

Vacation rental legislation moving forward

February 27, 2011 – By ILIMA LOOMIS, Staff Writer
Article from: The Maui News

WAILUKU – Vacation rentals would be limited to no more than two units per lot, and the county would set a cap on the number of rentals allowed in each district, under proposed regulations being discussed Monday by the Maui County Council Planning Committee.

The long-awaited legislation comes more than two years after the council adopted similar rules for bed-and-breakfast operations.

In addition to regulating them, the proposed legislation would also create a clear process for the county to approve short-term rental permits.

The committee will meet at 1:30 p.m. Monday in eighth-floor Council Chambers to consider sending the draft legislation to the Maui, Molokai and Lanai planning commissions for comment.

“At any (vacation) destination, there has always been a need for short-term rentals, as well as B&Bs,” said Planning Chairman Don Couch.

“We want to make it so it works both for residential areas as well as for the visitor industry.”

Some provisions of the draft include limiting the number of bedrooms that could be used as vacation rentals to six per home on Maui and Lanai, and three per home on Molokai. It would also require off-street parking for all guests, set “quiet hours” from 9 p.m. to 8 a.m., and require rentals to be marked with small signs.

While bed-and-breakfast operations have the owner living on-site, vacation rentals do not.

One rule in the proposal would require that owners who do not live in the county full time designate an on-site caretaker or an off-site manager.

County Council Member Gladys Baisa said she was “very excited” the legislation was finally moving forward.

Baisa oversaw the council’s passage of B&B regulations three years ago, and helped draft the short-term rental legislation. She called the draft “a good beginning point.”

She acknowledged that there remains more public concern about vacation rentals, because of the lack of an on-site caretaker or owner.

“We’re aware that short-term rental legislation is going to be more challenging,” she said. “But it’s something we must deal with.”

County Planning Director Will Spence said he was still reviewing the proposal, but said he did believe that there was a place for vacation rentals in Maui’s economy.

“That’s with the caveat that there should be some kind of review,” he said.

Isles’ unemployment rate dipped to 6.6% last year

Hawaii ranks seventh lowest in the country; 6 percent joblessness forecast for this year

By Star-Advertiser staff
Article from: Star-Advertiser

Hawaii’s unemployment rate fell slightly in 2010 to 6.6 percent, the seventh lowest rate in the country.

Last year’s rate was down from 6.8 percent in 2009, but up from 4.1 percent in 2008, the U.S. Bureau of Labor Statistics reported yesterday.

Hawaii’s job market should continue to strengthen this year, knocking the rate down to 6 percent, according to the University of Hawaii Economic Research Organization. The UHERO forecast released earlier this month calls for the rate to drop further to 5.3 percent in 2012 and 3.8 percent in 2013.

Hawaii’s rising unemployment rate from 2007 through 2010 was the result of the recession and a weak recovery that was not robust enough to “generate satisfactory job creation,” UHERO economists wrote in a report.

The economists said they expect the labor market to pick up, in part, because of the jobs that will be generated by the city’s rail project.

“The feeble job gains of the past year do not portend continuing labor market stagnation. Instead, more broadly based improvement will be seen in 2011 and 2012 as the Hawaii recovery strengthens and Oahu rail transit construction gets under way,” they wrote in the report.

The bureau report included revisions to the monthly unemployment data for 2010. Hawaii’s rate was higher in five months and lower in three months than originally reported. It was unrevised in four months.

One of the downward changes was for December, in which the bureau revised the rate to 6.3 percent from the 6.4 percent reported last month.

THE LOWDOWN
10 lowest unemployment rates in 2010

1. North Dakota 3.9%
2. Nebraska 4.7%
3. South Dakota 4.8%
4. Iowa 6.1%
5. New Hampshire 6.1%
6. Vermont 6.2%
7. Hawaii 6.6%
8. Virginia 6.9%
9. Kansas 7.0%
10. Wyoming 7.0%
U.S. average 9.6%