Maui Kai Update
August 2019
LOCAL MAUI NEWS
 Aloha Maui Kai Owners, 

Even though you can't tell by the hot temperatures, summer is coming to an end next month.  That means all things pumpkin-spice will be coming in the fall.  But the most surprising entry comes from Hawaii's favorite SPAM. Spam will add it to their 15 flavors on September 23rd. (click)

 Maui real estate just hit a record high.  A gated beachfront estate in Makena just sold to undisclosed buyer for $14 million, the highest price so far this year for a single-family home on Maui.

The number of passenger electric vehicles in the state is just a few hundred shy of reaching a milestone.  Last month, the number of passenger EV's in the state was at 9,699 up 29.4% from the same month last year, and 2.6% from June 2019.  Last month's total is just 301 shy of reaching 10,000.  To ease the process of buying an EV in Hawaii, a new website HawaiiEVexperts.org has been launched.

New traffic cameras have been installed at 10 key intersections on Maui.  The Transportation Dept. says the cameras are not for traffic violations.  You'll be able to view them in a couple of weeks at GoAkamai.org. Up to the minute traffic mapping features on Maui will be available at that same website by the end of the year.
        CURRENT MARKET ANALYSIS
                  
Home prices on Maui rose in July compared to a year ago but the number of homes sold went down year over year.  There were 84 single-family homes sold on Maui last month, which was 26.3% less than the 114 homes that sold in July 2018.  The median price of those homes was $794,500, which was an increase of 3.9% from the median price last year of $764,500.

The number of condominiums sold rose by 15% last month, but prices were down slightly.  The median price of a condominium on Maui in July was $493,000, a decrease of 3.9% from $513,163 in July 2018.  But the number of sales increased 15.2% to 159 units, from 138 units sold in June 2018.

Now l et's take a look at M aui Kai :

STATUS
UNIT
BD
BA
LIST $
SOLD $
CLOSE
Active
103
0
1
449,500
Active
203
0
1
484,900
Active
301
1
1
699,000
Active
304
1
1
699,000
Escrow
106
0
1
459,000
Escrow
703
0
1
475,000
Sold
307
0
1
454,500
430,000
08/08/19
Sold
506
0
1
495,000
475,000
02/01/19
Sold
108
1
1
539,000
525,000
01/17/19
Sold
405
1
1
599,000
575,000
05/24/19
Sold
605
1
1
625,000
585,000
04/18/19
Sold
308
1
1
699,000
650,000
08/21/19
Sold
201
1
1
749,000
745,000
06/18/19

Figures from Realtors Association of Maui
TRAVEL
Delta Airlines is going to scrap operations at Tokyo Narita Airport in order to establish a stronger presence in Haneda.  Haneda sits closer to Tokyo's city center, and Delta wants to be in play in time for the 2020 Tokyo Olympics.  *   Hawaiian Airlines wants a bigger presence in Tokyo Haneda Airport. They will add one additional daily nonstop between Hawaii and Haneda next summer.  The new route will add to Hawaiian's current total of 31 weekly nonstop flights between Hawaii and Japan.  The airline is also set to launch 4 weekly flights between Fukuoka and Honolulu in November.  * Air China will no longer fly between Beijing and Hawaii as of next Tuesday.  Part of the trade wars?  No, Hawaiian Airlines pulled out of that market last year, and Air China can't fill their planes either.  

Hawaiian Airlines is going to make traveling to our "unofficial 9th Island" Las Vegas a little easier.  The new 4 times a week Vegas/Maui flights will begin December 15th and run through February 12, 2020.  Just in time for the holidays.  Hawaiian Air is also adding a new 3 times a week service between Honolulu and Seattle-Tacoma Airport Starting January 7th.  Their seasonal winter service between Maui and Los Angeles will start December 14th and run through January 5, 2020.

Southwest Airlines is adding more routes to Hawaii.  New service between Sacramento and Honolulu will start January 19, 2020.  New service between Oakland and San Jose to Kauai and Kona will start either January 19 or 21, 2020.  Service from San Diego to Hawaii will be announced at a later date.  *  Texas is jumping into the fray.  Leaders at the Austin-Bergstrom International Airport have developed some "incentive plans" to encourage nonstop service from Austin to Hawaii - as well as international destinations in Ireland, China and South Korea.  The program spells out specific assistance to airlines that offer nonstop service from Austin to any destination in Hawaii at least 12 times a month for a year.

           
 
TOURISM

The number of tourists visiting the islands grew through the first half of the year compared to 2018.  Total visitors increased about 4% - to 5,191,523 - as compared to the same time period last  year along with an increase in arrivals from air service and cruise ships.  If visitor arrivals remain at this pace through the end of the year, Hawaii's visitor arrivals for 2019 will top 10 million - A RECORD!  *  Chinese tourism to Hawaii is on the decline. Is the trade war to blame? Chinese visitor arrivals dropped 25% in the first half of this year.  It was on a downward trend before President Trump's trade war.  Chinese visitors account for less than 2%, but they spend more money per person than visitors from any other region.  The downward trend began to accelerate in 2018, Chinese arrivals to Hawaii peaked in 2015, so it seems unlikely that the 18-month old trade war is entirely to blame.    

Hotel occupancy was up statewide last month compared to the same period last year - with a 1% increase to 85%.  The average daily rate (ADR) also increased by 4% to nearly $305, and revenue per available room (RevPAR) jumped more than 5% to nearly $260.  Again, that was statewide.  MAUI led the pack with ADR at $436 and RevPAR at $359.

Clearly, Maui is attracting lots of visitors who are paying more to stay on Maui than any other island.  Lots of folks who own Maui property enjoy a steady stream of income when they're not using it themselves.  That's what I do.  But not all vacation rental companies are the same.  If you're currently in a vacation rental program, or have been toying with the idea of placing your property in one, do yourself a favor and check out  M aui Beachfront Rentals .    They take all the hassle out of it for you.   And they market the heck out of your place with extra advertising on sites like VRBO, HomeAway, Flip Key and others ... all at no additional cost.
      MORTGAGES
Dean Rathbun  of  Avis Mortgage  wants to remind us that just like today, investors were worried back in 1979 ... it was the war against inflation.  The average inflation rate in the US was 10%. Homebuyers were locking in mortgage rates of 11.1% on 30-year-fixed mortgages and feeling good about it as mortgage rates rose to 18.5% by October 1981.  Today, investors aren't so much worried about inflation.  They're concerned about the US - China trade war, the pace of global economic growth, the influence of monetary policy, negative interest rates ... the list goes on.  But, Don't Panic.  Just use caution.

Right now, the 30-year-fixed-rate mortgage continues to hover near historical lows.  Mortgage demand has reached a three-year high, and there's been a spike in refinancing activity.  Economists at Fannie Mae are forecasting two more quarter-point interest rate cuts by the Federal Reserve this year, expecting that the Fed will move to cut rates in September and again in December.  That could bode well for lowering mortgage rates for the remainder of the year.

A well known online lending service just published the results of a new study they conducted asking the question of how debt - from mortgages to student loans - can possibly influence a person's health and even life expectancy.  Of note, they found that a higher mortgage debt relative to income is linked with a higher life expectancy!  Guess homeownership is a good thing.  Other forms of debt - like auto debt and personal loan debt - did NOT have the same link and actually generally corresponded with lower life expectancies.
MAUI HAPPENINGS    

8/24-25: Emma Sharpe Hula Festival under the Banyan Tree Lahaina 
9/02: Labor Day
9/09: 3rd Annual La Ulu Breadfruit Day Free
9/14: Pailol Challenge 2019  26 mile canoe race
9/14: Chinese Moon Festival Wo Hing Museum Front St, Lahaina  FREE 10am - 4pm  
9/14-15: Festivals of Aloha - Banyan Tree  FREE music, food, activities
9/14: 18th Annual Richard Hoopii Male Hawaiian Falsetto Contest  details
9/26-29: 4th Annual Maui Salsa Bachata Congress  schedule
9/23: End of Summer
9/28: 3rd Annual Baby Expo 10am - 1pm Queen Kaahumanu Center
  
Aloha Friday Free Movie Night   info  
09/20: Alad din
10/18: Ugly Dolls
11/15: Toy Story 4
12/20: The Lion King

Maui OnStage    Iao Theater    tickets
9/27-13: The Graduate  play

Maui Arts & Cultural Center    tickets
8/24: Beat-Lele   Ukulele tribute to The Beatles
9/06: Starry Night Cinema:  Pokemon Detective Pikachu FREE
9/06: Halemanu  "jazz infused rock & roll with Hawaiian soul"
9/12: Hula Ma'i
9/13: Artist 2 Artist: Henry Kapono & Blayne Asing
9/14: Ku Mai Ka Hula 2019
9/18: Artist Talks: Abigail Romchak on Art & Activism
9/21: ZepMaui X  Rock tribute to Led Zeppelin
9/27-28: The Republik Music Festival Maui   Reggae
9/27: Steel Pulse, Trevor Hall, & the Original Wailers
9/28: Tribal Seeds, Matisyahu, & Groundation
9/28: Ukulele Workshop with Roy Sakuma
9/29: Maui Ukulele Festival

ProArts Playhouse Kihei       tickets
9/13-29: Strangers On A Train

Maui Obon      schedule
8/24: Kula Shofukuji Mission
9/07: Hana Buddhist Temple


As you can see from the numbers above, more and more visitors are coming, many of them wanting to own their own piece of paradise, and available inventory at an all time low.

If you'd like to see what your property is worth in this market, I' d be more than happy to provide you with a free, no obligation, confidential assessment of your property.  Conversely, if you're looking to add to your real estate portfolio, let me know. (Hey, according to that study it could even extend your life expectancy!)   As owner of Berkshire Hathaway Maui Properties I have over 30 years experience in the Maui market with sales approaching $2 billion!  We a re the  only  Berkshire Hathaway Real Estate Brokerages on Maui. Our offices are located in Lahaina-Kapalua and Wailea-Makena.  I'm available to you 7 days a week. 

I hope you're enjoying my monthly updates.  Feel free to share them with your friends and neighbors.  If they like, I'll add them to my update list. Completely private and never any junk mail.

John
Owner/Broker


If you are currently listed with another Broker, this is not intended to disturb that relationship
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