Island Notes
A collection of thoughts on life, family, food, art, business and things we love about living in Hawaii.
October 24th, 2014
Aloha!
So much is happening it has been difficult to even find time to write about it. From my own record sales in July and August, with over $8,000,000 in closed sales, to a potentially even bigger 4th quarter with over $7,000,000 listed just these past two weeks! Wow! Real Estate activity is booming. But, sadly my friends...this will not last. 

Most experts including  my own personal favorite, Hawaii's own Paul Brewbaker, understand that real estate is cyclical and it would appear that we are, in fact, in the final phase of this particular cycle. As Buyers and Sellers,  the question should be: How do we interpret and act on this knowledge? 

My advice to Sellers is sell now. While there may be another positive year in the market and values will undoubtedly still increase over the rest of 2014 and most likely the 1/2 half of 2015, you do not want to be waiting too long. Once the cycle is done, selling becomes more difficult and the property value gains you made in waiting may be lost. There will be fewer Buyers  and those remaining will have more negotiating leverage with fewer buyers competing. 

Buyers have an altogether different outlook. Interest rates will probably stay relatively constant though the end of this year and next year but they will rise. And we all know that incremental increases in the cost of borrowing money means significant changes to the amount people can afford. And most economists predict, this cycle, unlike the last cycle, will have a much softer landing than what we have seen in previous cycles. So, there will probably not be wholesale price drops like we saw in 2009 after the economic collapse of 2008.

The one common truism that will affect both Buyers and Sellers is that the next 18 months will certainly have more activity in the market than the following few years. If your home investment is long term, buy now. Interest rates are low and can only go higher. The price reductions you may see in 18 months to 2 years from now will almost certainly be offset by higher interest rates over that same period. 

 If you are a Seller thinking of selling now or, possible early next year...sell now. There are still many Buyers out there and rates are low. Don't wait until the market turns and the power shifts back to Buyers.
  
Last thought: I want to personally thank each and every client, friend and friend of a friend who have come to me and made the decision to trust me with your real estate decisions. I take this responsibility very seriously. Sales and marketing my clients most valued asset, their homes and properties, is what I dedicate every day to. The highest compliment I can receive is your continued trust and referral of my skills to other friends and family. Aloha and Thank You!

Read the full market update  MichaelShower.com

                         Just Listed

                Offered at $4,750,000
Effortlessly blending island style with indoor outdoor living, this home, perched on the beach above the World Famous Pipeline, is a treasure. Architecturally crafted accents combined with a contemporary aesthetic make this 4 bedroom residence, on 100' of sandy beach overlooking the beautiful blue ocean, a one of a kind property. With its iconic wave inspired design, this home is known as the "Blue Wave House". Quality finishes, outstanding design and the absolute best North Shore ocean front location.                               



                             Just Listed   
                
                    Offered at $2,495,000

  
This newly remodeled home with some of Hawaii Loa Ridge's best views is stunning. Amazing views from virtually everywhere on this property make it extremely special. Just completed new kitchen countertops, new appliances, new cabinets, new bathrooms and a recently completely renovated 4th bedroom that is ideal for multi generation living make this property a must see. Offered at $2,495,000. 
Offered at $3,200,000
     PRICE REDUCED
             
 
Property Values On The Rise

The number of properties that are in escrow are a forward indicator of what home sales might be in the future. An escrow typically takes 45 to 60 days from the time an offer is accepted until the time it closes. At the end of the second quarter, the number of single-family homes in escrow at $1 million or higher, was down 15 percent from the same period a year ago. We usually see an increase in the second quarter. At the end of the third quarter, the number of single family homes at $1 million or higher surged to a 70 percent increase over last year. What does all of this mean? If all of the transactions currently in escrow close, we will see a strong performance of sales for our luxury real estate market in the coming months.

 

The largest increase is in the price ranges between $1 million and $4 million. The sweet spot remains in the $1 million to $2 million price range, representing almost 80 percent of the sales units for luxury homes. The $2 million to $3 million price range is also active with an 86 percent increase in escrows over the prior year, and the $3 million to $4 million price range has 3.5 times more units in escrow compared to last year. Our Honolulu Multiple Listing Service is currently showing only two homes in escrow priced at $4 million or more at the end of the third quarter.

 

In a competitive market, expertise matters.  The ability to provide clients with in-depth knowledge of this segment of the market, skillfully negotiate on your behalf, and strategically market your home to a targeted group of qualified buyers is how I deliver exceptional results. 

More luxury property sellers choose to list with Coldwell Banker Pacific Properties than with any other brokerage on the island. Our exceptional Previews International marketing not only finds the right buyer, we also get the best results. Call me so we can develop the best strategy for your real estate goals.
  
 
Michael Shower (RA)
808-375-4811
Michael is a Top Producing agent specializing in Oahu Real Estate.
808-375-4811
License: RS 29962
  
 
Recently Sold Properties


1288 Ala  Moana Blvd #26E
MLS #201412990
SOLD 7/29/14
$3,150,000
Sold this E stack high floor unit in one day for $400,000 higher then the most recent, similar E stack unit. Full price cash offer in one day $3,150,000. Staging, photography & understanding the market really does matter in High End Real Estate.
More Recently Sold Properties
Ocean Villas at Turtle Bay
57-020 Kuilima Drive Unit #213
Kahuku HI 96731 
MLS#201405317
SOLD 8/18/14
$1,525,000

61-673 Kamehameha Highway Haleiwa Hi 96712
MLS #201331935
SOLD 7/23/14
$2,050,000
Represented buyer


714 Ocean View Drive Honolulu HI  96816
MLS #201334716 

SOLD 5/29/14 $725,000
Represented Buyer


66-007 Alapii St. Haleiwa HI 96712 
MLS #201402330 

SOLD 4/15/14 $799,000
Represented Buyer


MLS #201400506
SOLD 2/27/14
$655,000
Represented Seller


MLS #201400694
SOLD 02/06/14 
$755,000
Represented Seller
 
 
 SOLD 12/23/13
$1,040,000
Represented Seller
 
 
SOLD  12/20/13
$263,000
Represented Seller 
 
 
 SOLD 11/14/13
$381,000
Represented Seller
 
 
59-385 Ke Nui Rd Haleiwa HI 96712
MLS #201332452
 
Sold 11/12/13
$3,700,000
Represented Buyer
 
 
SOLD 10/31/13
$770,000
Represented Seller
  
65-070 Hukilau Loop Waialua HI 96791
MLS# 201327440

SOLD 9/18/13
$685,000
Represented Seller

 
 SOLD 09/16/13
$695,000
Represented Seller
 
 
SOLD 8/12/13
$627,500
Represented Buyer
 
59-615 Ke Iki Rd #BHaleiwa HI 96712
MLS #1210014

SOLD 4/12/13
$2,880,000
Represented Seller

 
66-031 Alapii St Haleiwa HI 96712
MLS #1304269
 
SOLD 8/22/13
$725,000
Represented Buyer
 
SOLD 6/7/13
$835,000
Represented Seller
Taos, New Mexico
 
In September, Silvia and  I were fortunate enough to take a short trip to Taos, New Mexico to attend our good friends' weddding. Prior to this trip, neither of us had been to New Mexico. The land, people and food were absolutely amazing. Nestled in the low mountains in the Northeast corner of the state of New Mexico, Taos is probably one of the most beautiful places we have ever visited. Have a look at our photos. If you take a trip there, please let us know as we have some good food recommendations we'd love to share.
 
 
 
 
 
 
 
 
 
A Reputation for Excellence
About Michael Shower (RA)
 
Michael is a Top Producing agent specializing in Oahu Real Estate. 
His dedication to his clients has helped him to become one of the most sucessful agents on Oahu.
 
He is a Previews Property Specialist, a 2009 International Sterling Society Award Winner, 2011 International Diamond Society Award Winner and a Coldwell Banker Top Listor Award Winner in 2009.
 
In 2013 he received the Coldwell Banker International President's Elite status. This is a designation placing him in the Top 3% of all Coldwell Banker agents in North America. Additionally, in the 4th Quarter of 2014 Michael ranked in the top 3% of  over 42,000 Coldwell Banker agents worldwide
.
 
In 2014, he was the Top Producer for Coldwell Banker Pacific Properties Kahala Branch for the month of July and Top Listor in January.



� 2014 Michael Showers (RA). All Rights Reserved. Coldwell Banker � is a registered trademark licensed to Coldwell Banker Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Coldwell Banker Pacific Properties Office is Owned and Operated by NRT LLC. Real Estate Marketing by Up to Speed Media.