Wailea Fairway Villas Update
May 2019
LOCAL MAUI NEWS
Aloha Wailea Fairway Villa Owners,  

If you're  a Hawaii-Five-O fan you'll be happy to hear CBS has renewed the show for a 10th season.  And as I make that little announcement, watch me segue into 4 bills that have passed this legislative session and are awaiting the Governor's signature ... one which involves film production.  Production companies spend millions in Hawaii when they make TV, movie and digital media entertainment here.  SB 33 will increase the income tax credit to them from $35 million to $50 million.  SB 495 is aimed at levelling out the playing field between local businesses and online companies they compete with. The bill will impose a state excise tax on online retailers who are based outside the state and do $100,000 worth of transactions with people in Hawaii per year.  SB 1360 seeks to level the playing field between resident owners of businesses in Hawaii with non-resident owners. Now non-resident partners, trusts or beneficiaries that receive distributed money must withhold income tax on what is distributed.  SB 409 is another playing field leveler, this time between owners of gas vehicles and those of electric and alternative fuel vehicles. If signed, beginning Jan 1, 2020 there will be a $50 surcharge with the 1st registration renewal for electric and other alternative vehicles in addition to the annual $45 vehicle registration fee to contribute their share of revenues to support the needs of the state highway fund.

Scientists have been recording carbon dioxide levels atop Mauna Loa since 1958.  The concentration of CO2 has been rising by an average of 2.5ppm over the last decade.  But the increase from 2018 to 2019 has been around 3ppm.  This month the observatory's sensor registered carbon dioxide levels over 4ppm.  The last time humans experienced levels this high was ... never. Humans didn't exist.  Those levels have been unseen for 3 million years in the Pliociene period, when temperatures were warmer, average sea levels are thought to have been around 50 feet higher, and Antarctica had forests.
        CURRENT MARKET ANALYSIS
The median price of a single-family home on Maui last month jumped 13% past the $800,000 mark to a new all-time high!  The new median price for Maui is higher than the record set on Oahu last fall, which was $812,500.  The actual median price of a single-family home last month was $819,500, compared to $725,000 in April 2018.  The number of sales however, dropped 17.4% to 76 homes from 92 homes sold during the same month last year. 

Condominium sales on Maui dropped 22.2% last month to 137 units sold from 176 units sold in April 2018.  The median price of a condo on Maui also fell, by 13.1% to $440,000 in April, from $506,113 in April 2018. 

The Maui County Council has approved property tax rates for the next fiscal year, which will be effective July 1st.  Hotels and resorts will see an increase from $9.37 to $11, a 17% jump.  Short-term rentals will go from $9.28 to $10.75, a 16% increase.  Homeowners will see a bump from $2.85 to $2.90.  All rates are based on $1,000 of net taxable assessed value.

Now l et's take a look at Wailea Fairway Villas :

Status
Unit
Bd
Ba
List $
Sold $
Close
Active
L103
2
2
770,000
Active
N201
2
2
800,000
Active
M103
3
3
759,000
Escrow
A102
2
2
619,000
Escrow
E103
3
3
1,195,000
Sold
D102
2
2
739,000
725,000
01/18/19
Sold
E102
2
2
759,999
720,000
01/18/19
Sold
R202
2
2
829,000
810,000
05/20/19

Figures from Realtors Association of Maui
      TRAVEL
Southwest Airlines is adding another airport to its network of Hawaii destinations.  Hilo is the 5th Hawaiian airport, and second on the Big island that Southwest services.  Harry Kim mayor of Hawaii county, shared that there will be 4 daily flights between Hilo and Honolulu by this fall, and direct flights into Hilo from California before the holidays.

All Nippon Airways (ANA) has completed its second test flight in preparing for a big expansion in Hawaii.  Their goal is to double the number of seats they connect from Honolulu to Tokyo in 2020.  Starting this Friday, they will add service 4 times a week on its A380 aircraft.  In July, ANA will add a second A380 to the Hawaii market, and a third in July of 2020.

Hawaiian Airlines is seriously ramping up their Hawaii/Japan game.  They just got approved for a 2nd Haneda flight slot (just in time for the Tokyo 2020 Olympics.   They already have regular flights from Haneda to Honolulu and Kona.  Haneda is closer to downtown Tokyo than Narita, which Hawaiian also serves. 

And not content to leave it there, Hawaiian Airlines plans to offer 4 nonstop weekly flights between Fukuoka Japan and Hawaii as early as November. They also serve Osaka and Sapporo.
           

TOURISM

Maui County's visitor growth of 3% projected for this year is half of what it was in 2018, when arrivals rose 6.3% to nearly 3 million visitors.  BUT the University of Hawaii Economic Research Organization (UHERO) declared that Maui County today hosts 17% more visitors than it did in 2017, AND they're spending 16% more.

Well, that's a lot of folks coming to Maui and they all need places to stay.  A lot of them are looking for alternatives to the overpriced hotels with all those extras tacked on to the bill.  M aui Beachfront Rentals  fills the bill.  They can enjoy multiple bedrooms, full kitchens, laundry, free parking, plus all the amenities of a resort.  And since Wailea Fairway Villas doesn't allow short term vacation rentals, why not put your family and friends in a close by property.   Do what I do now and check out  MBR .  
      MORTGAGES
Dean Rathbun  of  Avis Mortgage  says the Federal Reserve left interest rates unchanged this month, and its chairman, Jerome Powell, stressed that it would remain patient, even as investors looked for a rate cut and President Trump urged one.  Powell said that his outlook for the U.S. economy is a positive and healthy one for the rest of this year.

Based on the Fed's laundry list of concerns, the bond market (which determines rates) will be watching economic data closely both at home and abroad.  The stronger the data, the more rates could rise, while weaker data could lead to new long-term lows.

Speaking of lows, mortgage rates edged lower again this week, with rates remaining well below year ago levels.   Even Freddie Mac's chief economist, Sam Khater, said the economy remains on solid ground with steady job growth and five-decade low unemployment rates, which will drive up home sales this summer.

Nationally condominium loans represent only about 8% of total mortgages, a share that has remained fairly stable for several years.  However, they are poised to play a much larger role, notably in the jumbo sector.  A recent report by CoreLogic sited 2 locales where condos are especially hot: Hawaii where they represent 42% of the market, and Washington D.C. at 37%, and both are high-priced markets.
MAUI HAPPENINGS 
Kapalua Wine & Food Festival

5/17-25: Maui Matsuri Events  schedule
6/1: Maui AgFest i nfo
6/2: Kahakuloa Half Marathon & Relay  schedule
6/6-9: 38th Annual Kapalua Wine & Food Festival  details
6/9: 11th Annual OluKai Ho'olaule'a 2019  race info
6/12-16: 20th Annual Maui Film Festival  tickets
6/15: Pride Maui 5k fun run and walk  sign-up
6/15-16: Kamehameha Parade Lahaina  details
6/23-30: Maui Jazz Camp  info
6/27: Hawaiian Music Series Concerts in Lahaina  details

Aloha Friday Free Movie Night   info  
6/21: Spiderman: Into the Spider/Verse
7/19: Coco
8/16: Hotel Transylvania 3: Summer Vacation

Maui OnStage    Iao Theater    tickets
7/12-8/4: Mama Mia

Maui Arts & Cultural Center  
 tickets  
6/01: ArT=Mixx: Mystic Groove
6/02: Kahalawai CD Release   concert
6/06: Chris Thomas King   blues
6/07: Keller Williams   concert
6/22: Zenshin Daiko's 20th Annual Taiko Festival   concert
6/23: 28th Annual Ki Ho'alu Slack Key Guitar Festival
6/28: Streetlight Cadence   alternative folk pop
6/29: Jazz Maui: Jazz, Blues, & Beyond

ProArts Playhouse Kihei    tickets
6/7-23: Sleuth

As you can see from reading my update, real estate and the Maui economy is doing well.  Lots of tourists still coming to our Island, many of them wishing to own their own little piece of paradise. So if you're wondering what your property may be 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 get in on some good buys, let me know and I'll look into adding to your real estate portfolio.   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
Broker/Owner


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