WHALE WATCHING SEASON IS HERE

Maui Peak  Whale Watching Season (Dec 15 – Apr 15)

Humpback whales are gentle giants that are famous for their singing abilities, belting out seductive ballads to attract mates or to challenge other suitors. Their unique hunting skill, called “bubblenet” feeding, involves a group of Humpbacks working together to capture schools of herring.

These marine mammals travel great distances to take advantage of the best breeding grounds and feeding spots. North Pacific Humpbacks, for example, mate and give birth in Hawaii and then travel to Alaska each summer to feed.
With its warm weather, crystal clear tropical waters, and gentle channel, Maui is one of the best places for whale watching in the entire world. Humpback whales come to Maui every winter to give birth to their calves, mate, and socialize. During their time on Maui, Humpback whales are highly active on the surface, dazzling whale watchers with breaches, spy hops, and tail lobbing. Maui visitors and locals are entertained by these above-water performances.

What are the whales that I’m seeing in Maui?
The whales are humpback whales, the fifth largest of the world’s whales. There are distinct populations of humpback whales in all of the world’s ocean basins. The population that comes to Maui spends summers feeding in the cool waters of the North Pacific in the nearshore waters of Southeast Alaska and through the Aleutian Islands into the Chukchi sea. They are also found as far south as the Farallon Islands off California.
In autumn, the whales migrate to warm water areas near the equator to mate and give birth. These areas include Hawaii, the islands south of Tokyo (Ogasawara and Okinawa Islands), the Commonwealth of the Northern Marinas, and the Soccoro Islands of Mexico. About 60% of these North Pacific humpback whales come to Hawaii.

Why should I go whalewatching when I’m visiting Maui? How does whalewatching compare on Maui versus the other Hawaiian Islands?
Maui is considered one of the world’s top whalewatch spots, famous for the proximity of whales to its shoreline and the large number of whales found here. Warm sunny weather, great visibility, and clear ocean waters add up to excellent conditions for whalewatching. More than 3,500 humpback whales come to Hawaii each winter to mate and give birth, making our state the nation’s primary mating and calving ground for these endangered animals. Maui is where most of these whales are found. They are attracted to the shallow seas off Maui’s south and western shores, the relative lack of predators and the warm water temperature.

How can I see whales from shore? If so, why should I go on a whalewatch?
The best way to spot whales is by scanning the horizon, looking for a blow…the misty vapor plume that results when a whale exhales at the surface. You can also look for large splashes caused by activities such as tail slapping, breaching or pectoral fin slapping. Another trick: look for a boat that is sitting still for no apparent reason. There’s likely to be a whale nearby.
Sometimes, the whales come very close to shore and you’ll have an excellent view. Most other times, you’ll find yourself longing for a closer look. Whalewatch cruises offer you the opportunity to get closer to the whales. They offer thrills such as hearing a whale’s blow (an exhalation of 300 mph) or even seeing a whale swim beneath your boat. They are an opportunity to spend a two hours with an expert, to learn about these majestic animals as you watch their fascinating behaviors.

How close can we get to whales on a cruise?
Hawaii has the benefit of having some of the very best whale protection laws in the world. We all observe a “100 yard minimum” law, which states that whales within 100 yards cannot be approached by any means, including by boat, kayak, sailboard or even by swimming. Being wild animals, whales can approach us as they wish. It’s not uncommon for whales to come up alongside the boat, or may even swim beneath it. We call these events “whale muggings.” The boat captain can’t move the boat until the whale has departed!

Where do you go to see the whales? How far do you have to go?
Typically, you don’t have to travel by boat for more than ten minutes before you begin to see the humpback whales. We often see whales just minutes after leaving the harbor.

What’s the best time of day to see the whales? When are they most active?
Based on two decades of experience with whalewatching and whale research, researchers have found that all times of day are good for watching whales. They appear to be active throughout the day. More than time of day, the ability to see whales depends on conditions such as wind speed, sun glare or sea state. When you go whalewatching depends on your preferences. Morning offers ultra-smooth, calm conditions. Go in late afternoon, and you can enjoy a sunset as well as a whalewatch. And midday is popular too — it’s a nice time to take a break from the beach. So really, just pick the time of day that’s best for you. Pacific Whale Foundation has 15 cruises available each day, seven days a week, from both Maalaea and Lahaina Harbors.

What’s our chances of seeing them?
During Maui’s “whale” season, you have an excellent chance. It’s so good that some operators (including Pacific Whale Foundation) guarantee you see whales. The peak of the season is in January, February, March and April, but whales are commonly seen in Maui from December through early May.

What does a whalewatch include?
Most Maui whalewatches are two-hour tours. The better whalewatches feature talks by expert naturalists who describe the latest whale research findings and interpret the behaviors of the whales for you. If you have kids, choose a whalewatch that offers a free junior naturalist program for kids and let you participate in whale research.

Which is the best harbor to leave from?
Both Maalaea and Lahaina Harbors are in the zone where whales are most frequently seen. Save time driving and choose the harbor most convenient to you. Cruises from both harbors generally travel in the “lee” of the West Maui (Papawai) Mountains, where wind is not an issue. We suggest choosing the harbor nearest to your hotel or condo, to minimize driving time.

How do I choose the best whalewatch?
From knowing where the whales are most likely to be found, to understanding Maui’s weather patterns, the best cruises are offered by the most experienced operators. Go with the best experts you can find. Look for an operator with modern, well-equipped boats. In general, the most modern vessels feature the most efficient, low-polluting engines. Some whalewatches are powered with eco-friendly fuels made with recycled vegetable cooking oils. Also look for cruises staffed by rigorously trained and certified naturalists. You can also help whales by choosing a cruise that donates its profits to marine conservation. Be sure the company clearly delineates the portion of the profits or ticket sales going to protect whales.

What kind of boat is best? Can some boats get closer to the whales?
Whalewatch vessels on Maui range from kayaks to rafts to sailboats to power catamarans. All of these boats are restricted from approaching whales closer than 100 yards. Rather than choose a boat based on promises to get “closer” to the whales, select one that’s stable and comfortable, with unobstructed viewing of whales. Catamarans tend to be more stable and are designed so that everyone on board can enjoy a good view of the whales.

What are hydrophones? Are they important?
One experience not to be missed is listening to the haunting songs of male whales. Hydrophones are sensitive microphones that can be lowered into the water. This is done when the boat’s engine is turned off. The sounds are usually played over the boat’s public address system. You’re likely to hear not one but several singing whales in the area. Be sure your cruise is equipped with hydrophones so you can hear the whales’ songs during your whalewatch.

Will we see a breach?
One of the thrills of whalewatching is that you’re observing huge animals that are wild and free and somewhat unpredictable. Because the whales are in Hawaii to mate, give birth and care for their young, there are fascinating behaviors that occur here, such as “singing” or the intense shoving and pushing of males as they compete for a position near a receptive female. Certainly, breaching is one of the more dramatic of all whale behaviors, and is a treat for all viewers, but there are many other whale behaviors that are as equally engaging to watch.

Why do whales breach?
This behavior is seen in many species of cetaceans. It takes place at the feeding areas and at the warmer calving areas. One theory is that whales breach when they hear a boat in the vicinity; breaching lets them visually scan the surface for boats they hear but cannot visually or acoustically localize underwater. Recent research indicates that breaching is more likely to occur when a male humpback approaches another singing male humpback or joins a surface active group. The aerial act of breaching could be a display of dominance and aggression in this circumstance.

What do the whales eat here?
Whales don’t engage in feeding behaviors in Hawaii. They may feed opportunistically, but there is actually very little food for them here. Keep in mind that the most nutrient-rich areas of the world’s oceans are the cooler, polar regions. These areas support large populations of small fish. In contrast, Hawaii’s warm waters contain much less nutrient material (which is why our ocean is so clear). Humpback whales of the North Pacific spend their summers feeding in an area that stretches from the Aleutian Islands of Alaska to the Farallon Islands of California. A whale can consume nearly a ton of food per day. (In the North Pacific, humpbacks feed primarily on small teleost [bony) fishes such as herring and capelin.)

How many whales are usually seen in a pod?
Humpback whales do not appear to form stable groups or long term bonds, with the exception of the mother and calf bond, which lasts a little less than a year. In Maui, mother-calf pods are seen more frequently than single adults or larger groups of four or more whales. Sometimes an escort whale will join the mother and calf. It is assumed that the escort is a sexually active male. Typically, he remains with them for less than a day — most associations last only a couple of hours, or in many cases, only a few minutes.
Larger pods are often formed by a group of males as they compete with each other to get near to a sexually receptive female.

When are the calves born?
Sightings of calves occur most frequently after late January. The average gestation time for humpback whales is 10 to 12 months, so that calves conceived during one breeding season are born during the next winter’s breeding season.

I want to take photos…what’s the best film and camera choice for me?
If you don’t have a digital camera, bring along ASA 200 (or 400) film; a 80-200 mm zoom lens is helpful. Set your shutter speed for 1/500th of a second to freeze the action and minimize the effect of the boat’s movement. Hold the camera steady; don’t try to follow the motion of the whale. Have a video camera? Avoid excessive zooming and never film into direct sunlight.

No, you don’t have to go on a boat to see whales if you are here during the right time of the year. It is common to see people standing on a hillside overlooking the ocean and watching the signs of distant whale activity through binoculars.
You can often SEE whales from shore … but you can’t EXPERIENCE them from that distance. There is a tremendous difference between watching a whale splashing in the water two miles away and experiencing the thrill of looking over the edge of the boat and having one of these gentle giants swim directly underneath you. If you are here during peak season from December 15th to April 15th, do yourself a favor and go on a whale watch.

Michele Muir White R(S), ABR, SFR
Coldwell Banker Island Properties
Maui All-Island Realtor
808.298.8448
[email protected]

Access to Maui MLS @ www.MauiRealEstateGuru.com

October 2011 Maui Real Estate Stats

73 home sales this October at a median price of $480,000. By comparison, there were 64 home sales reported in October of 2010 at a median price of $425,000. This is a 14% increase in volume and a 13% increase in median price over last October.

75 condo sales reported at a median price of $310,000 for October of 2011. The October 2010 numbers were 72 sold at a median of $322,500. This is a 4% increase in volume and a 4% decrease in price.

The land market continues to be stagnant. There were only 7 sales reported for the month at a median price of $625,000. Last year’s land sales numbers of 6 sales at a median of $207,500.

REOs and shorts continue to have a significant impact on our market. There were 39 REOs and 33 short sales that closed last month. Of the 73 homes sold, 37 were REOs or shorts. That is 51% of the total sales volume. For condos, 34 of the 75 properties sold were REOs or shorts. That is45% of the total number of condos sold.

Sales volume is outpacing last year in all segments, but not by significant numbers. The bump in median home sales prices last month was the one other anomaly. That being said the change in median is likely a reflection of more high end sales than any measurable increase in home values. Smaller sample sizes mean that shifts in where market activity occurs can be just as big a driver of medians as changes in values.
There has been more luxury activity this October than we saw last October. There were seven home sales over $2,000,000 this month compared to only two sales in October of 2010. For luxury condos, 5 sales over $1,500,000. This outpaced the October 2010 numbers of 3 sales. 2011 has proven to be a better year for luxury home and condo sales than 2010.

For buyers and sellers of Maui Real estate, our market conditions remain similar to what we have seen for the past year. Buyers are going to continue to find properties for prices significantly below the peak of the market. Buyers may find inventory tight in some market segments. Lower priced homes and condos can be particularly competitive. Buyers may have to exercise patience to find the best values. When opportunities do come on the market, buyers are advised to act quickly and put their best foot forward as the best deals often attract multiple offers. Sellers are going to continue to find tough competition from the REO and short sale market. Those that need to sell quickly are served well by paying close attention to recent comparable sales and pricing close to or in some cases below those sales. For any questions and all of your Maui real estate needs, please contact Michele Muir White R(S), ABR, SFR, Coldwell Banker Island Properties, 808.298.8448, [email protected] http://www.MauiRealEstateGuru.com

 

 

September 2011 Maui Real Estate Sales Stats

During the month of September, there were 78 home sales with a median price of $415,000. By comparison, the September 2010 numbers were 64 home sales with a median of $440,000. This represents a 20% increase in volume and approximately a 6% decrease in median prices.

The condo numbers for September 2011 are 76 sales with a median price of $310,000. The totals during September 2010 were 99 condos sold at a median of $302,000. This is a 23% decrease in condos sold and a 3% increase in medians when comparing the two Septembers.

Land sales continued to be anemic in September with 11 properties sold at a median of $285,000. These numbers bested the September of 2010 sales by a small margin when there were only 7 properties sold also with a median price of $285,000. This translates to a 57% increase in volume.

Sales of Bank Owned (REO) and Short Sales Transactions have continued to be significant in our real estate market. There were a total of 46 REO sales and 14 short sales that closed in September. Of the 77 homes sold, 35 were REOs or Short Sales. That is 45% of the home sales volume. For condos, there were 23 REOs or short sales. That is just under 30% of the total condo volume. Land sales included two bank owned properties last month.

The stand out number of the stats above is the dip in condo sales when compared to the same time last year. The 2010 numbers have outperformed the 2011 numbers for condo sales two other months this year. For those two months, the better 2010 sales numbers can be attributed to a boost provided by long term new developer contracts. Over the last couple of years, we have seen a large number of those long term contracts close as construction was completed at the Honua Kai complex.

What caused the dip in condo sales? Possibly, we are seeing some fallout from a reduction in inventory. There was a big supply of short sale and bank owned inventory at the lower ends of the market last year. This year, the inventory has shrunk. Last September, there were 35 REO or Short sale closes closes vs only 23 this year. This will be an interesting thing to watch over the coming months. It may turn out that this month was just an anomaly.

The home sale activity was the opposite of the condo market with a robust 20% increase in sales volume. The 2011 home sales volume has now bested the 2010 sales volume for 6 out of 9 months. While not the sole driver of the increased market activity, the ultra luxury market continued its strong run of activity with seven closes over $2,000,000. That includes a $13,800,000 sale on Keawakapu Beach in Wailea and a $7,750,000 sale for a 1.3 acre estate in Makena.

The land market this September was better than last September, but sales volumes are still low when compared to activity back in the boom years. Limited financing options, limited spec home demand and strong opportunities in the home market have all been factors in the slower land sales market.

Buyers are finding good values, but certain market segments are proving to be surprisingly competitive. Limited inventory is the big driver in these competitive segments and multiple offer situations are common for quality properties. In order to prepare buyers for the competition, it is imperative for buyers to talk with a mortgage professional and get pre-approved before they start their search. Sellers need to price their homes well to improve their odds of a successful sale. Contrary to some reports, I have yet to see any clear evidence of price increases. There are still quite a few sellers who are priced above the market and their showing activity is suffering as a result. If sellers should also consider home inspections prior to listing. This helps limit potential surprises when they are under contract. 

If you have any questions regarding these stats, please contact Michele Muir White R(S), ABR, SFR, Coldwell Banker Island Properties (808) 298.8448, [email protected]

 

Maui Real Estate Stats, August 2011

Fall in Maui is typically our slowest time for all things real estate. Fall is a time when inventory typically decreases on Maui. Fewer properties are listed and some sellers pull their homes off the market during the fall. This is our slow season for tourism and our slowest season for real estate. The reduced inventory is offset by reduced demand. Prior to last month, we had seen an overall trend of shrinking inventory. The number of properties for sale has dipped anywhere between 12% and 23% depending on the property type. There was a brief increase in inventory reported in July, but the reduction in inventory resumed again in August .

81 sales reported for August 2011 at a median price of $410,000. By comparison, there were 69 sales in August of 2010 at a median price of $460,000. This represents a 17% increase in sales volume and an 11% decrease in median price when comparing Aug. 2010 to Aug. 2011.

There were 86 condo sales in August 2011 at a median of $266,000. August 2010 numbers totaled 81 sales at a median price of $310,000. This translates to a 6% increase in sales volume and a 14% decrease in median price when comparing this Aug. with last Aug.

There have been 11 land sales reported in August at a median price of $180,000. This compares to 7 sales at a median of $387,500 during August of 2010. That translates to a 57% increase in volume and a 54% decrease in median price.
Short sales & Bank Owned Properties (REOs) are significant market drivers for Maui real estate. There were 55 REO sales and 19 short sales that closed last month. Of the 81 home sales, 42 were REOs or short sales. That is approximatley 52% of the home transactions. Of 86 condo closings, 30 were REO or short sales. That equates to roughly 35% of the total condo sales. Two of the eleven land sales were REOs.

Medians continue to come in lower than the 2010 monthly medians. The dip in medians is reflective of adjustments in value and a high volume of low priced closes driven largely by bank owned sales. August was a pretty big month for bank owned home sales with a total of 30 closes.

Condo volume for August of 2011 outpaced the volume for August of 2010 by a relatively small margin. There were 17 additional new developer closes for condos this month. These were all based on recent contracts. New condo developments are offering good incentives and compelling prices to stay competitive in a buyer’s market.

Land sales volume has been down this year overall, but August 2011 outperformed August 2010. The median sales price for land was down substantially when comparing August 2011 to August 2010. While we are seeing values slip in the land market, changes in medians do not mirror actual decreases in value.

The luxury market numbers have seen some pretty strong ultra luxury activity over the last couple of months. This August we saw 3 home sales over $6m including a new North Shore record of $9,600,000 for an ocean front estate in Spreckelsville. That means we have now seen new record high sales for the island, the North Shore, Kapalua & Wailea/Makena this year. The 3 sales over $6m in August of 2011 compares to one sale over that price in August of 2010. On the land front, there was a big sale upcountry with 236 acres closing for $6,250,000. This was the former Kula ‘I’o development that never quite got off the ground. Luxury condo sales were actually down a little this August compared to last year with 5 sales over $1.5m compared to 6 in 2010.
Two luxury condo sales closed at the low end. A Na Hale O Makena, a unit closed for $925,000. This was the lowest priced closing in the complex since 2003. There was also a Kapalua Ironwoods that closed for $1.1m. We have not seen prices at this level in 10 years.

What does this all mean for Maui’s real estate market? What can buyers and sellers expect? The data indicates that it continues to be a buyer’s market. Buyers may find the inventory limited in some market segments. There may also be strong competition for the best values that come to market. Sales above asking price are common among the best bank owned deals. Buyers who require financing should contact a mortgage professional to get pre-qualified before beginning their search. Interest rates are at historical lows. Sellers need to closely evaluate their particular market segment when developing pricing strategies. Most market segments are still seeing significant competition from bank owned properties & short sales. In the condo market, new development offerings can also be stiff competition for conventional sellers.

In these market conditions, it’s prudent to work with a knowledgeable realtor. Please contact Michele Muir White, R(S), ABR, SFR, Coldwell Banker Island Properties for all of your Maui real estate needs. 808.298.8448; [email protected]; http://www.MauiRealEstateGuru.com

 

Maui Real Estate Stats, July 2011

66 homes sold in July at a median price of $404,500. By comparison, 61 homes sold in Maui last July at a median of $500,000. That is approximately an 8% increase in sales volume and a 19% decrease in median.

97 condos sold in July at a median price of $325,000.  Last July, there were 69 condos sold with a median price of $390,000. This translates to a 41% increase in sales volume and a 17% decrease in median prices.

There have been 13 land sales for July 2011 at a median price of $400,000. Last July there were 15 sales reported at a median of $400,000.  We saw about 13% fewer land sales this year compared with last July.

Bank Owned Properties (REO) and short sales are still making a significant impact on Maui's real estate market.  There were 37 REO sales and 22 short sales.  Of all home sales, 41% were shorts or REOs.  Of all condo sales, 36% were shorts or REOS. 23% of the land sales last month involved REOs or Short Sales.

Looking at the numbers above, the condo sales stand out the most. For most of 2011, the monthly sales numbers have been below or a little bit above the numbers reported for the same month of 2010. This July’s numbers were far better than July 2010. Overall, the 2011 condo numbers have been pretty solid. For the first half of 2010, anywhere between 15-40 sales were based on new development pre-construction contracts that date all the way back to the 2005-2006 time frame.  Without the high number of new development sales, the comparison between 2011 and 2010 sales becomes more clear. Another factor is that July 2010 was also just a slow month overall for sales. It was the second slowest month in all of 2010. While July 2011 was solid, I don't feel it signifies any indication of a big market resurgence.

While home and condo sales were up, land was down. That being said, the land numbers also come with their own caveat. The Maui MLS does not differentiate between residential land sales and commercial land sales. There were five commercial land sales in July of 2010 and one commercial sale for July 2011. When you take out the commercial sales, residential land sales were higher in July 2011 than July 2010. The Maui land market remains slow and the inventory remains large.

While the housing market posted modest increases in volume compared to July of 2010, the July 2011 market truly stood out due to a single sale. As previously reported in our Wailea midyear statistics, Maui has a new sales record for a home on Maui. Paypal co-founder Peter Thiel purchased a 1.6 acre oceanfront estate in Makena for $27,000,000. This year there has also been a new record high sale for Kapalua ($14,000,000) and as of yesterday the North Shore of Maui, Spreckelsville ($9,650,000). Needless to say, there are still buyers willing to pay an absolute premium for the best properties that Maui has to offer.

While we are seeing new record high prices for luxury properties, median prices continue to fall on Maui. Some of that decrease in median prices can be attributed to price decreases. Some of that decrease can be attributed to where market activity is occurring. The bulk of the REO and short sales are continuing to occur at the lower price points of the market. While there were some big sales last month, they aren’t enough to offset the greater volume of lower priced properties that continue to close.

What does this mean for buyers and sellers? Sellers should continue to keep a close eye on market competition and recent sales when determining how to price their properties. REO and short sales remain formidable competition. While I think we can safely say it is a buyer’s market, buyers should be aware that they face their own set of challenges. Those who are thinking of buying and require financing should make sure to get pre-qualified prior to beginning their search. Strong credit and solid overall financial positioning are necessary to take advantage of the better financing options available. Buyers should also be aware that banks are closely scrutinizing the condition of the properties being purchased. Some of the bank owned properties that require significant improvements do not qualify for financing. While there are some very good values being listed, many of the best values are receiving multiple offers. These properties frequently sell over asking price.       Contact Michele Muir White R(S), ABR, SFR. Coldwell Banker Island Properties, Wailea Gateway, 808.298.8448, [email protected] with questions or for assistance buying or selling Maui real estate.

 

Maui Real Estate June 2011 Stats

Maui real estate is seeing a trend of shrinking inventory.  Inventory is down 13-20% from July 2010.   HRS ACT 48 is also likely to slow the flow of bank owned properties.  There is a moratorium on non-judicial foreclosures and all judicial foreclosures must first go through mediation.

Residential sales volume is up 4%, while median home prices are down 5%. Condo sales volume is down 3% , while median prices for condos are down 24%. Land sales are down 3%, while median land prices are down almost 30%. Realtors Association of Maui’s analysis anticipates that 2011 sales should fare better during the second half of the year, as the first half of 2010 was bolstered by the first time home buyer tax credits.  2010 condo sales were also bolstered by new developer sales at Honua Kai, contracts that originated in 2005-2006 that closed in 2010. The Honua Kai closings also account for part of the sharp drop in median prices for condos. These new developer closings were well above the median condo sales prices, and helped inflate last year’s median sales prices.  While condo values have continued to decrease over the last 12 months, the drop is not as steep as the median condo sales numbers suggest. With fewer new developer closings in the latter half of 2010, the Honua Kai effect will be less of a factor on median prices and volume.

2011-2012 Maui County Property Tax Rates & Homeowner’s Exemption

July 1 is the beginning of the new fiscal year for Maui County, and new property tax rates are now in effect.   The majority of the tax rates for this fiscal year were increased over the 2010/2011 rates to help offset decreases in assessed value.  Below is a list of the 2011/2012 tax rates.  Rates are based on per $1,000 of assessed value.

  • Improved Residential       $5.55
  • Apartment                        $5.50
  • Commercial                      $6.25
  • Agricultural                      $5.80
  • Conservation                    $5.60
  • Hotel and Resort              $9.00
  • Unimproved Residential $6.25
  • Homeowner                     $2.50
  • Timeshare                        $15.00
  • Commercialized Residential $4.20

Homeowners (owner occupied) are currently allowed to deduct $300k from their current assessed value.  A recent Maui News article reported that the Maui County Council has given their initial approval to reduce the homeowner’s exemption to $200k.

For all your Maui real estate needs or questions, please contact Michele Muir White R(S), ABR, SFR, Coldwell Banker Island Properties, Wailea Gatway Office, 808.298.8448, [email protected], http://www.MauiRealEstateGuru.com

 

 

 

Maui Real Estate May 2011 Stats

As of May 31, 2011, 70 home sales sold at a median price of $421,500. This compares to May 2010 when 81 homes sold at a median price of $442,500. This is a 14% decrease in home sales activity when comparing 2011 to 2010.

111 condos sold in May at a median sales price of $349,000. May 2010 condo sales were 105 sold at a median of $410,000. This reflects a 6% increase from May 2010.

14 lots were sold in May at a median price of $275,000. May 2010 numbers were 16 sales at a median of $547,500 . This represents a 12.5 % decrease in sales volume when compared to May 2010.

Bank owned (REO) and short sale properties have dominated Maui’s real estate market since the economic downturn. There were 50 REO sales and 23 short sales last month. This compares to 29 REOs and 24 shorts sales for May 2010. 32 of the 70 homes sold were REOs/short sales, and that represents 46% of the home sales during the month. 34 of the 111 condos sold were REOs/short sales, and this reflects 31% of the market. 7 of the 14 land transactions sold last month were REOs/short sales, which is 50% of market.

When looking at the numbers for last month, there appears to have been a pretty healthy drop in home sales volume. This is the second month in a row we have seen home sales volume lower than what we saw during the same month in 2010. Conversely, condo numbers were up this month by a healthy margin. The difference in sales numbers would have been even greater if not for a boost from the Honua Kai new development closings in May 2010.

As the summer season begins, what can buyers and sellers expect in Maui’s current real estate market? It is still very clearly a buyer’s market. Buyers are continuing to find opportunities well below peak market pricing. That being said, buyers will find that the most compelling deals will attract strong interest and competitive bidding from multiple buyers. Sellers will continue to find the market provides tough competition especially if there are REO properties in their market segment. Buyers are looking for values and quality. Once their property goes to market, sellers would be advised to listen to market feedback and adjust prices accordingly.  Please contact Michele Muir White, R(S), ABR. SFR, Coldwell Banker Island Properties 808.298.8448, [email protected], www.MauiRealEstateGuru.com for your Maui real estate needs.

Maui Makani Classic Returns to Maui

Thursday, October 27, 2011, Ho’okipa Beach Park, Paia, Maui, Hawaii

The Maui Makani Classic is the final stop on the American Windsurfing Tour (AWT). Translated, Hookipa means “hospitality” and in 2011 we invite you as a competitor or spectator to come and see for yourself one of the most famous windsurfing locations in the world.  You won’t be disappointed.

Dates:           (October 27-November 1, 2011)
Time:            All Day
Location:      Ho’okipa Beach Park
Mile # 9 Hana Highway, Paia, HI 96779

Contact information: 808-270-7415
Cost: Free.
Links: http://americanwindsurfingtour.com/

 

Maui Makani Classic

Maui Makani Classic Returns to Maui

Thursday, October 27, 2011.  Ho’okipa Beach Park, Paia, Maui, Hawaii

The Maui Makani Classic is the final stop on the American Windsurfing Tour (AWT).  Translated, Hookipa means “hospitality” and in 2011 we invite you as a competitor or spectator to come and see for yourself one of the most famous windsurfing locations in the world. You won’t be disappointed.

Dates:           (October 27-November 1, 2011)
Time:            All Day
Location:      Ho’okipa Beach Park
Mile # 9 Hana Highway
Paia, HI 96779

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Hawaii Homeowners New Mortgage Foreclosure Bill

Article from MauiNewsNow – Lisa Teichner

Governor Neil Abercrombie signed Senate Bill 651 last week, which amends the Hawaii Revised Statutes Chapter 487, Section 667 as of Thursday, May 5, 2011. The bill/new law is lengthy (we’re told approximately 700 pages in total) and ambiguous, however there are some bullet points which Hawaii homeowners should be aware of.

The primary or general purpose of this bill was to create guidelines for foreclosing mortgagees, to establish a mediation special fund and require mortgagees (often referred to as lenders or banks) to engage in mediation with mortgagors (often referred to as borrowers) for sixty days, in order to attempt a voluntary resolution of the breach of the mortgage agreement. We have heard that mediations between mortgagees and mortgagors have already begun and that Bank of America among other lenders has scheduled “in person” meetings with borrowers this week in Hawaii.

IN REGARD TO:

AUCTIONS:

An owner-occupant may elect to participate in the mortgage foreclosure dispute resolution program. “Dispute Resolution” means a facilitated negotiation between a mortgagor and mortgagee for the purpose of reaching an agreement for mortgage loan modification or other agreement in an attempt to avoid foreclosure or to mitigate damages if foreclosure is unavoidable. If an owner-occupant participates in the program, the department shall open a dispute resolution case. This case opening operates as a stay (suspension) of (non-judicial) foreclosure proceedings and may be filed or recorded at land court or bureau of conveyances.

Public sales following power of sale foreclosures must be held on grounds or at a facility under the administration of the State. Also, public sales of mortgaged properties located in Maui, must be held in Maui County. There have been previous cases where public sales for Maui mortgaged properties were held on Oahu, for example.

There is a provision where if an owner owes back Homeowner’s Association dues and would like to cure the default (following the proper steps), the Association shall allow 60 days for the owner to cure default and cannot reject a “reasonable” payment plan.

JUDGMENTS:

It has been previously assumed that in the case of a nonjudicial foreclosure, the foreclosing lender could not pursue a deficiency judgment against the mortgagor however this Hawaii law finally makes it official by prohibiting it, unless the debt is secured by other collateral or as otherwise provided by law. For example, there have been some cases where a lender has not pursued a judgment for the deficiency but has filed a judgment against the mortgagor for breach of contract. In the case of a judicial foreclosure, all remedies available to a lender may be asserted including the right to seek a deficiency judgment. Under certain circumstances, an owner-occupant of a residential property that is subject to nonjudicial foreclosure may convert the action to a judicial foreclosure. We’re not sure why this was included in the bill or why an owner would choose to convert to judicial from nonjudicial unless it is merely a tactic to buy more time prior to sale/auction.

DELIVERY OF DEED/TRANSFER OF TITLE:

The law prohibits a foreclosing mortgagee to engage in delaying the delivery of the recorded, conformed copy of the conveyance document to a bona fide purchaser who purchases in good faith for more than forty-five days after the completion of the public sale. This has been creating problems for mortgagors in cases where there is a Homeowner’s Association. A public sale would be conducted, the bank “gets the property back” and title would not be transferred for months. Banks were not paying Association dues post-auction and the Homeowner’s Association would attempt to collect dues from whoever is “on title” which in many cases was still the prior owner.

SHORT SALES AND LOAN MODIFICATIONS:

The new law also prohibits:

– A foreclosing mortgagee to engage in completing nonjudicial foreclosure proceedings during short sale escrows with a bona fide purchaser if the short sale offer is at least five per cent greater than the public sale price; provided that escrow is opened within ten days and closed within forty-five days of the public sale; and provided further that a bona fide short sale purchaser shall have priority over any other purchaser;

– Completing nonjudicial foreclosure proceedings during bona fide loan modification negotiations with the mortgagor and;

-Completing nonjudicial foreclosure proceedings against a mortgagor who has been accepted or is being evaluated for consideration for entry into a federal loan modification program before obtaining a certificate or other documentation confirming that the mortgagor is no longer eligible or an active participant of that federal program.

MORATORIUM ON NONJUDICIAL FORECLOSURES:

This is a big one so we’re putting the section below in its entirety (per summary):

{SECTION 40. There shall be a moratorium on all new nonjudicial foreclosure actions under part I of chapter 667, Hawaii Revised Statutes, for property located in this State to begin on the effective date of this Act and to end on July 1, 2012. No foreclosure by power of sale pursuant to section 667 5, Hawaii Revised Statutes, shall be initiated and the registrar of the bureau of conveyances shall not record an affidavit or notice of sale pursuant to section 667-5, Hawaii Revised Statutes, for a power of sale foreclosure under section 667-5, Hawaii Revised Statutes, initiated during the moratorium period established by this Act.}

There is still some question as to what is considered a “new” foreclosure so you should consult an attorney to be sure but it may be where the mortgagee has not yet issued a Notice of Default (NOD) and Intention to Foreclose prior to the signing of this bill. If you or someone you know has had a property in foreclosure prior to the signing of this bill (May 5, 2011), this may not be considered a new foreclosure and may proceed to sale at public auction as previously scheduled. Per part I of chapter 677, Hawaii Revised Statutes, you may wish to confirm whether this moratorium applies solely to owner-occupied properties.

Please keep in mind that this is a very limited synopsis of what is included in the bill and new law and we have just pulled a few items which may be applicable to our community and important to be aware of. Due to the sheer length of the new law and because there is currently no real indication of how it works in practice, we will have to wait a few more months before attorneys will come out of the woodwork to discuss it in a public forum. We were told that the Hawaii State Bar Association will meet to discuss the document further in July of this year.

A 58 page Summary of the Senate Bill 651 is available at – http://www.capitol.hawaii.gov/session2011/bills/SB651_CD1_.htm

This article is for informational purposes only and is not legislation, evidence of legislative intent nor is it meant to be construed as legal advice. Please consult a licensed attorney for legal advice.