January 2017 Kahana Update

Kahana Update

January 2017

LOCAL MAUI NEWS

Aloha Fellow Kahana Owners,

Driving to Haleakala to watch the sunrise is one of the most popular things to do on Maui by both residents and visitors. It's so popular in fact, that starting Feb. 1st you're going to have to reserve your spot online. The cost to reserve is $1.50 per car and you can book it up to 60 days before your visit and up til 6pm the night before your visit. Get all the details or make your reservations by clicking here.

Maui's 115 year old Pioneer Inn and the 52 year old Mauna Kea Beach Hotel were among 37 historic hotels inducted into the National Trust for Historic Preservation of America program. Already on the list for Hawaii are the Moana Surfrider - 1901; Hotel Lanai - 1923; The Royal Hawaiian - 1927; and the Hilton Hawaiian Village Waikiki - 1955.

There are renovations proposed for the Kaanapali Golf Course area. Redevelopment is sectioned into 5 different blocks on both sides of the Highway. Section 1: 56 unit condominium complex, oceanfront beach club and public restaurant, conversion of golf into two Par-3 holes extensively landscaped and waterscaped as part of the Makai Course. Section 2: 100-room boutique hotel, 80,000 sf retail parcel, and golf clubhouse. Section 3: nine-hole Par-3 golf facility, putting course and pavilion, and family restaurant. Section 4: Multi-family ocean view residences, Section 5: potential new starter facility and pub with cart parking, alternative clubhouse location, and possible event venue or related resort facilities. The $354 million construction investment will create 1,100 jobs, $1.2 million General Excise Tax revenue, $800,000 in annual Transient Accommodations Tax revenue, and $4.1 million in new property tax revenue yearly.

Hawaii resident and eBay founder Pierre Omidyar has invested $10 million in a $27 million fund designed to advance the ethical use of artificial intelligence. Omidyar said he's participating "to make sure that critical areas like ethics, accountability, and governance, are considered from the earliest stages of design." Another prominent Hawaii landowner - Facebook CEO Mark Zuckerberg, has revealed what he plans to do with his roughly 700 acres of undeveloped oceanfront land he purchased. The tech titan said that he and his wife Priscilla "want to build a home on the island and help preserve the wildlife and natural beauty."

CURRENT MARKET ANALYSIS

Capped off by a strong December, 2016 was the best year nationally for U.S. homes sales since the recession. Home sales in 2016 were the highest in 8 years, topping the sales of 2015, the previously strongest year. Nine months of 2016 posted sales greater than in the same months of 2015. So what is anticipated for real estate in 2017? Low Inventories: The year has started with the lowest inventory of homes for sale at least since the recession, and possibly in decades. Home Prices: are expected to rise 3.9% nationwide. Mortgage Rates: are forecast to reach 4.5%. Repeat buyers are stepping up, wanting to lock in their rates. First-time buyers on the other hand, seem to be retreating.

Here on Maui, the median price of single-family homes surged last month to its highest point since the Great Recession. According to a report by the Realtors Association of Maui, the median price rose 27.3% in December to $700,000 from $550,000 in December 2015 ... the highest price since September 2006. The number of single-family home sales increased 4.3% last month to 97 sales from 93 in December. 2015.

Condominium sales jumped 20.8% to 122 sales, from 101 in December 2015, with the price increasing slightly by 1.1% to $414,500 from $410,000 last year.

For the entire year of 2016, single family home sales decreased 1% to 1,076 sales, while the median price jumped 10% to $636,750. Condominium sales increased 10% with 1,310 units sold. The median price of a Maui condos increased 1% to $415,000 in 2016 compared with 2015.

Let's take a look at Kahana:

KAHANA OUTRIGGER
STATUS	UNIT	BD	BA	LIST $	LT	SALE $	CLOSE
Active	4A1	3	3	797,500	LH

KAHANA SUNSET
Active	D10	2	2	630,000


Sold	B1B	1	1	569,000		535,000	12/30/2016
Sold	E5	2	2	675,000		650,000	10/24/2016

KAHANA VILLAGE
Active	37(7A1)	3	2	1,195,000	LH


Escrow	3 (1A3)	2.00	2.00	825,000	LH


Sold	34	2.00	2.00	849,000	LH	755,000	11/18/2016

ROYAL KAHANA
Status	Unit	Bd	Ba	List $	LT	Sold $	Close
Active	405	0	1	215,000	LH
Active	203	0	1	275,000
Active	105	0	1	279,000
Active	204	0	1	280,000
Active	605	0	1	310,000
Active	619	0	1	345,000
Active	1217	0	1	364,500
Active	315	1	1	445,000
Active	115	1	1	468,000
Active	514	1	1	479,000
Active	108	1	1	485,000
Active	614	1	1	485,000
Active	314	1	1	499,000
Active	207	1	1	515,000
Active	807	1	1	527,000
Active	708	1	1	529,000
Active	201	2	2	449,000
Active	501	2	2	499,000
Active	920	2	2	524,500
Active	720	2	2	569,500
Active	1001	2	2	615,000
Active	311	2	2.5	995,000


Sold	104	0	1	322,000		305,000	8/2/2016
Sold	916	0	1	328,000		310,000	12/2/2016
Sold	616	0	1	325,000		315,000	11/14/2016
Sold	703	0	1	340,000		300,000	2/26/2016
Sold	413	1	1	519,000		500,000	9/16/2016
Sold	513	1	1	549,000		518,000	4/27/2016
Sold	201	2	2	399,000		399,000	2/16/2016
Sold	220	2	2	498,000		498,000	3/11/2016

Figures from Realtors Association of Maui

TOURISM & TRAVEL

The first of three Q400 turboprop airplanes has arrived for Island Air as the company plans to replace its fleet of ATR aircraft by this summer. The newer planes are 30% faster, burn 30% less fuel, and have 14 more seats than their predecessors. The new aircraft will enable Island Air to increase the number of daily roundtrips between Honolulu-Oahu and Kahului-Maui from six to seven, and the number of daily roundtrips between Honolulu and Kona from five to six.

Hawaiian Airlines announced it will launch a first-of-its-kind non stop service between Kauai's Lihue Airport and the Ellison Onizuka Kona International Airport this year. The once-daily service will begin on March 12, and will be Hawaiian's longest Neighbor Island route.

Turns out airlines servicing Hawaii have the best frequent flier programs. According to a recent WalletHub report, Delta SkyMiles ranked #1 overall for the second consecutive year. Hawaiian Airlines offers the most rewards value - $21 per $100 spent. Alaska Airlines came in a close second, offering $20 per $100 spent.

Hawaii room rates surged while occupancy was flat last week. Statewide the average daily room rate increased 10.5% to $268.23 while the hotel occupancy rate increased by 0.9% to 81.5%. Room rates on Maui increased 18.6% to $345.59 with occupancy rising 2.7% to 80.7%.

Lots of you have property that you place in a rental program when you're not using it. It offsets the cost of owning. Some of you opt to do it yourself - like I used to. So I don't have to tell you about the hassles and headaches that come along with that option. Maui Beachfront Rentals is the pill for what ails you there. They cover everything: at no additional cost to you they advertise your rental on sites like VRBO, HomeAway, Flip Key and more. And their concierge service can't be out done ... car rentals, airline reservations, island activities, even special in-room amenities. But what of the folks coming to visit Maui who don't have their own place to stay? They shouldn't pay through the nose for a basic hotel room where they have to eat out for every meal, when they can get a beautiful condominium or home to stay in for a comparable cost? Give MBR a call.

MORTGAGES

For the third consecutive week, fixed-rate mortgages edged down, lowering borrowing costs for buyers and refinancers. Prospective buyers are concerned about where mortgage rates are going. To put things in perspective, I turn it over to my go-to guy Dean Rathbun of Avis Mortgage. Dean says to look at this historically. In the 1970s, the average 30-year fixed-rate mortgage was 8.9%; in the 1980s, it was 12.7%; in the 1990s, it was 8.1%. The first decade in the 2000s, rates averaged 6.3%. Suddenly, that 4.2% rate may not look so bad. Dean agrees with economists predicting mortgage rates to average 4.5% to 4.8% by the end of the year, and 5.5% by the end of 2018.

GREEN

Hawaii currently gets 25% of its electricity from renewable energy sources. Hawaiian Electric Co. submitted an updated "Power Supply Improvement" plan to state regulators, saying "it could reach the state's renewable energy goal five years ahead of the 2045 deadline, converting to 100% clean energy for electricity use.

By the year 2020, they predict Molokai could reach 100% clean energy, the Big Island could reach 80% renewable energy, Maui could attain 63% clean energy, Lanai could get to 59% renewable energy and Oahu could be at 40% clean energy. The plan takes into account a mix of solar, wind, battery storage, and biofuels. Currently, Maui is at more than 35% renewable energy.

A report released by the U.S. Department of Energy, stated Hawaii is one of the most active states in the United States when it comes to the hydrogen and fuel cell industry. The report also noted several projects in the works in Hawaii dealing with this industry.

MAUI HAPPENINGS

2/03: Chinese New Year Celebration Kalana O Maui County Bldg 9-10am

2/03: Chinese New Year Lahaina Wo Hing Museum Front St 10am-8pm

2/04: Run/Walk for the Whales info

2/04: Makawao Chinese New Year Lion Dance 10a-Noon Baldwin/Makawao

2/11: Bubble Run Maui details

2/18-20: Service trip & 2 night Cabin Stay in Haleakala Crater sign up

2/21: Mardi Gras Maui Aids Benefit 4 Seasons Wailea tickets

2/23: Stand Up for the Whales guided stand up paddle details

2/24-27: Whales Tales Ritz Carlton Kapalua info

Maui Celebrity Series tickets

3/25: Belinda Carlisle, Cheech and Chong

(tix on sale Feb 15)

Maui OnStage Iao Theater tickets

3/3-19: Dirty Rotten Scoundrels

4/28-5/14: A Few Good Men

5/20-21: West Side Story Concert Maui Chamber Orchestra

7/14-8/6: 9 to 5 The Musical

Maui Arts & Cultural Center

tickets

1/26: Garrick Ohlsson piano

1/27: Judy Collins

1/28: Chad Taktsugi hawaiian music

1/28: Felix Cavaliere's RASCALS (founder of the Young Rascals)

2/01: tHe wONDERHEADS - LOON play

2/02: Jonathan Korth & Rachel piano & soprano

2/04: ArT=Mixx: Metamorphoses FUZZBOX and DJ Sole

2/07: An Evening with David Sedaris comedy

2/09: Rosie Herrera Dance Theatre

2/10: Bill Porter aka Red Pine in the Green Room

2/11: Jake Shimabukuro & the Maui Pops Orchestra ukulele

2/16: Ailey II dance

2/17: Dim Mac 20th Anniversary with Steve Aoki indie rock

2/19: Winter Pops with David Benoit concert

2/22: Scott McCreery (American Idol Winner) country

2/23: Dobet Gnahore African vocalist and dancer

2/24: Kris Kristofferson in concert

2/25: Allen Stone & His Band edgy soul-pop

2/26: Keauhou Hawaiian music

2/28: Journey with special guest Willie K concert

2017 is off to a good start. Sid and I are ready to help you market your property if you're considering selling. We're also committed to finding you that "great buy" if you're looking at expanding your Maui real estate portfolio. Remember we're the only Berkshire Hathaway Real Estate Brokerage on Maui, and now with two offices to serve you ... Lahaina and our new Wailea-Makena office. We're available to you 7 days a week. Til next months update ...

Mahalo,

John and Sid