Lower prices drive rebound in resort home sales
Higher demand and improved buyer confidence also helped the boost
By Andrew Gomes
Article from: Star-Advertiser
Buyer demand for Hawaii homes broadly rebounded last year, and a new report shows that the same was true for one segment of the state’s housing market: resort residences.
Sales of condominiums and single-family homes — new and previously owned — as well as house lots at master-planned resorts such as Wailea on Maui, Mauna Lani on Hawaii island and Princeville on Kauai ended a four-year slide with a 42 percent surge to 1,473 properties last year from 1,040 the year before.
The surge was in line with home sale increases for all homes on the neighbor islands, where gains last year ranged roughly from 20 percent to 60 percent. Most resort home sales were on the neighbor islands as opposed to Oahu, where the rebound for all home sales last year was closer to 10 percent.
The report by local market researcher Ricky Cassiday of Data@Work said the rebound in resort home sales was aided by improved confidence among buyers and the slow economic recovery, though the big driver appeared to be lower prices.
“No way around it,” Cassiday said in the report. “This strong rebound in activity is thanks to dramatically falling prices.”
The average sale price was $1.1 million last year, down 14 percent from nearly $1.3 million the year before.
Cassiday’s report said the average peaked in 2008 at nearly $1.6 million, which put the cumulative decline since then at 29 percent.
It’s uncertain whether prices will rebound this year. The 2009-10 price decline was a record. The previous record drop for resort home average prices in Hawaii occurred in a single year, 1977, when the average fell 27 percent, according to Cassiday.
Cassiday said Hawaii’s resort home market this year likely will either see prices stabilize, which could slow sales, or further price drops that would help sales continue rising. He said he’s betting more on prices rising slightly.
Last year, many resort home sellers were dropping prices. In other cases, lenders were pricing property attractively after foreclosure.
Cassiday’s report said 9 percent of resort home sales last year were foreclosures that sold for an average $737,343 compared with an average $1.35 million for nonforeclosure resort home sales. A report by RealtyTrac released earlier this year said 11 percent of all home sales in Hawaii were foreclosures last year.
Another factor in the average price decline has been developers cutting back on building high-end homes amid the economic downturn.
Developers sold 371 new resort homes last year, an 11 percent decline from the year before, the report said.
The divergence helped pull down the average sale price for all resort homes last year, as the average new home sold for $1.5 million compared with $971,277 for the average previously owned home.
Cassiday expects developers will have a smaller share of resort home sales this year if buyer demand grows ahead of home production by cautious developers slowly resuming construction.
In some cases, developers are offering incentives to spur sales.
Earlier this year, Castle & Cooke tried auctioning all its unsold inventory of resort property on Lanai. The company offered 11 homes and three lots, and ended up selling five condos at Manele Resort for close to $1.2 million each on average, or about 80 percent of the price for the most recent previous sale at Manele last year.
Last month, Brookfield Homes Hawaii publicized efforts to sell three golf course homes in its KaMilo subdivision at Mauna Lani with prices starting at $799,000. Last week, Brookfield announced an incentive of up to $50,000 in free designer furnishings for buying select KaMilo homes before May 15.
According to Cassiday’s report, there were 386 sales last year at the least expensive end of the market, between $250,000 and $499,000. At the high end, there were 358 sales for properties of more than $1 million.
Near the height of the market in 2006 and 2007, there were about 150 sales under $500,000 in each year compared with about 800 sales over $1 million.
$1.1 million. The Valley Island has held the top spot since at least 2006. The average on the Big Island was $704,328, followed by $465,369 on Oahu and $428,690 on Kauai.
Maui also had the most sales at 562. Hawaii island was next at 401, followed by Kauai at 345 and Oahu at 162.
Friday, April 29, 2011
Thursday, April 28, 2011
Loved Home in Pukalani
Spectacular Views!
Tucked away at the end of the cul-de-sac you will find this very loved single level home with 3 bedrooms and 2 baths, a den, and large living room overlooking great views.
Lots of storage. Two car carport. Easy to view with a little notice. Convenient location!
Contact Bob Hansen, BROKER, 808-283-9456 or
Donna D. Hansen, Realtor (S) 808-280-1650 for a showing today!
Wednesday, April 27, 2011
Marriott Slated To Break Ground For New 138 Room Courtyard Hotel On Maui Next Week
Marriott to break ground for new hotel on Maui
A new 138-room Courtyard by Marriott hotel is expected to cost $16.5 million
By Andrew Gomes
Article from: Star-Advertiser
A decade-old plan to build a hotel near Maui’s main airport in Kahului is finally moving forward.
Participants in the venture led by Alexander & Baldwin Inc. announced that construction is slated to begin next week on a 138-room Courtyard by Marriott hotel. A groundbreaking ceremony is scheduled for today.
The project has long been desired by tourism officials who lament the lack of visitor accommodations near the airport, Maui’s commercial core and county government offices. But economic factors stalled development for several years.
A&B discussed the project publicly in early 2001, but after obtaining county approvals including a zoning change in 2002, the company declared in 2004 that it had deferred the project because of high construction costs.
Now A&B said the timing is right to build the hotel, which is estimated to cost $16.5 million.
“The economy is coming back,” Grant Y.M. Chun, vice president of the real estate subsidiary of A&B, said in a statement. “We are confident this hotel — long anticipated, for sure — will be a welcome and convenient option for short-term visitors from the neighbor islands, government officials desiring proximity to Wailuku offices and, quite possibly sports event or family reunion attendees.”
Marriott expects the hotel will appeal to business guests, travelers and visitors interested in exploring Central and Upcountry Maui.
The four-story complex will include a business center, meeting rooms, a pool, fitness center, bar and lounge. The hotel also will include a guest laundry, surfboard storage and a convenience store.
The hotel will be the third Courtyard hotel in Hawaii. The others are in Waikiki and on Kauai. One is also planned for Laie. Overall, Marriott presently manages 14 hotel and time-share properties in Hawaii under the Courtyard and other brand names.
The Kahului hotel will be on a 3-acre site at the intersection of Dairy Road, Haleakala Highway and Keolani Place, which leads to the airport.
R.D. Olson Construction, an Irvine, Calif.-based firm that has built Marriott hotels, is the contractor for the Maui project. A&B estimates that more than 50 jobs, including some for local subcontractors, will be needed to build the hotel.
A new 138-room Courtyard by Marriott hotel is expected to cost $16.5 million
By Andrew Gomes
Article from: Star-Advertiser
A decade-old plan to build a hotel near Maui’s main airport in Kahului is finally moving forward.
Participants in the venture led by Alexander & Baldwin Inc. announced that construction is slated to begin next week on a 138-room Courtyard by Marriott hotel. A groundbreaking ceremony is scheduled for today.
The project has long been desired by tourism officials who lament the lack of visitor accommodations near the airport, Maui’s commercial core and county government offices. But economic factors stalled development for several years.
A&B discussed the project publicly in early 2001, but after obtaining county approvals including a zoning change in 2002, the company declared in 2004 that it had deferred the project because of high construction costs.
Now A&B said the timing is right to build the hotel, which is estimated to cost $16.5 million.
“The economy is coming back,” Grant Y.M. Chun, vice president of the real estate subsidiary of A&B, said in a statement. “We are confident this hotel — long anticipated, for sure — will be a welcome and convenient option for short-term visitors from the neighbor islands, government officials desiring proximity to Wailuku offices and, quite possibly sports event or family reunion attendees.”
Marriott expects the hotel will appeal to business guests, travelers and visitors interested in exploring Central and Upcountry Maui.
The four-story complex will include a business center, meeting rooms, a pool, fitness center, bar and lounge. The hotel also will include a guest laundry, surfboard storage and a convenience store.
The hotel will be the third Courtyard hotel in Hawaii. The others are in Waikiki and on Kauai. One is also planned for Laie. Overall, Marriott presently manages 14 hotel and time-share properties in Hawaii under the Courtyard and other brand names.
The Kahului hotel will be on a 3-acre site at the intersection of Dairy Road, Haleakala Highway and Keolani Place, which leads to the airport.
R.D. Olson Construction, an Irvine, Calif.-based firm that has built Marriott hotels, is the contractor for the Maui project. A&B estimates that more than 50 jobs, including some for local subcontractors, will be needed to build the hotel.
Tuesday, April 26, 2011
Maui Meadows Home...
Perfect home to enter into ownership in this popular Maui Meadows community on the quiet side of Akala Drive. A fabulous level, approximately half-acre parcel just waiting for someone to turn it into a tropical paradise. Potential to build a second story to obtain views. You will love the star filled Maui Meadows’ skies. The home has high ceilings, laminated wood flooring throughout, large mirrored closets, lots of shelved storage, plus all sliding glass doors have private lanais with their own entrances. Only minutes to beautiful beaches, world class dining and shopping and Wailea resort activities.
Located close to where dolphins and turtles enjoy our beautiful ocean waters, this peaceful sanctuary is zoned for a possible 750 sq. ft. (approximate) cottage which could easily be placed in a secluded portion of this large parcel. Don’t miss this fabulous opportunity to own in Maui Meadows.
Easy to show. Please call Clint Hansen, Realtor (S) 808.280.2764
Saturday, April 23, 2011
First Hawaiian Bank’s Income Rises Amid “Progress” In The Economy
First Hawaiian has ‘respectable’ quarter
CEO Don Horner says his bank’s income rose amid “progress” in the state’s economy
By Dave Segal
Article from: Star-Advertiser
First Hawaiian Bank said its net income rose 2.6 percent in the first quarter amid signs that the Hawaii economy is turning around.
The state’s largest bank in terms of assets posted earnings of $52.7 million compared with $51.3 million in the year-earlier period, according to financial results due out today.
Chairman and CEO Don Horner called the quarter “respectable” and said the bank’s overall fundamentals remain solid.
“We see continued progress in our state’s economy and are hopeful the impact of the March 11 tragedy in Japan will not be as severe as first predicted,” Horner said. “A strong tourism sector is an important contributor to lead our economic recovery.”
Earlier this month, First Hawaiian released a first-quarter business activity report that showed retail spending by consumers increased 10.2 percent over the same period a year ago at businesses open at least a year. The bank is the state’s largest provider of merchant card terminals and debit and credit card processing with more than 7,500 merchant locations in Hawaii, Guam and the Commonwealth of the Northern Mariana Islands.
First Hawaiian’s assets last quarter increased 6.3 percent to $15.2 billion from $14.3 billion.
Deposits were up 5.8 percent to $10.8 billion from $10.2 billion, and loans and leases edged up 2.8 percent to $8.2 billion from $8 billion.
The percentage of nonperforming assets to total assets remained low at 0.2.5 percent compared with 0.23 percent a year ago.
The bank’s capital, or net worth, at the end of thequarter was in excess of $2.6 billion and remained in the top quartile nationally as a percentage of total assets.
First Hawaiian, a wholly owned subsidiary of French banking giant BNP Paribas, is not required to separately report its earnings, but does so voluntarily each quarter.
The Honolulu-based bank, founded in 1858, has 58 branches in Hawaii, three on Guam and two on Saipan.
CEO Don Horner says his bank’s income rose amid “progress” in the state’s economy
By Dave Segal
Article from: Star-Advertiser
First Hawaiian Bank said its net income rose 2.6 percent in the first quarter amid signs that the Hawaii economy is turning around.
The state’s largest bank in terms of assets posted earnings of $52.7 million compared with $51.3 million in the year-earlier period, according to financial results due out today.
Chairman and CEO Don Horner called the quarter “respectable” and said the bank’s overall fundamentals remain solid.
“We see continued progress in our state’s economy and are hopeful the impact of the March 11 tragedy in Japan will not be as severe as first predicted,” Horner said. “A strong tourism sector is an important contributor to lead our economic recovery.”
Earlier this month, First Hawaiian released a first-quarter business activity report that showed retail spending by consumers increased 10.2 percent over the same period a year ago at businesses open at least a year. The bank is the state’s largest provider of merchant card terminals and debit and credit card processing with more than 7,500 merchant locations in Hawaii, Guam and the Commonwealth of the Northern Mariana Islands.
First Hawaiian’s assets last quarter increased 6.3 percent to $15.2 billion from $14.3 billion.
Deposits were up 5.8 percent to $10.8 billion from $10.2 billion, and loans and leases edged up 2.8 percent to $8.2 billion from $8 billion.
The percentage of nonperforming assets to total assets remained low at 0.2.5 percent compared with 0.23 percent a year ago.
The bank’s capital, or net worth, at the end of thequarter was in excess of $2.6 billion and remained in the top quartile nationally as a percentage of total assets.
First Hawaiian, a wholly owned subsidiary of French banking giant BNP Paribas, is not required to separately report its earnings, but does so voluntarily each quarter.
The Honolulu-based bank, founded in 1858, has 58 branches in Hawaii, three on Guam and two on Saipan.
Friday, April 22, 2011
Front Row @ Ke Alii Ocean Villas
Front Row!
DIRECT OCEAN VIEWS! Have it all, spectacular views along with a spacious and popular two bedroom two bath jewel of a condo with a fabulous loft presently being used as a media room.
Private garage perfect for your personal car and extra storage. Directly across from the beach for enjoying the surf & sand views. Easy stroll to restaurants and shops. The community offers a fabulous pool, hot tub, phenomenal fitness center and play area. It just doesn’t get any better than this.
Contact Bob Hansen, BROKER, 808-283-9456 or
Donna D. Hansen, Realtor (S) 808-280-1650 for a showing today!
Wednesday, April 20, 2011
Bank Of Hawaii First Quarter Earnings Top Forecasts ~ CEO Cites Many Reasons Including Improving Hawaii Economy And Stabilizatin Of Real Estate Values
Bankoh net falls but tops forecasts
CEO Peter Ho says an improving Hawaii economy is leading to better credit quality
By Dave Segal
Article from: Star-Advertiser
Bank of Hawaii Corp. said its loan portfolio and interest margins are continuing to benefit from the state’s improving economy.
Hawaii’s second-largest bank in terms of assets blew past analysts’ first-quarter earnings estimates by 16 cents yesterday even as net income fell 19.7 percent from the year-ago period.
Bank of Hawaii had earnings of $42.4 million, or 88 cents a share. Analysts had expected the bank to earn 72 cents a share. A year earlier, the bank earned $52.7 million, or $1.09 a share, but that included net gains of $20 million from the sale of investment securities. Last quarter, the bank had securities gains of just $6.1 million.
Peter Ho, chairman, president and CEO of Bank of Hawaii, said he was pleased with the first-quarter results, adding that the improving economy in Hawaii was largely behind it.
“All roads go back to the economy,” Ho said. “We have seen for several quarters now continued improvement in the Hawaiian economy, and that’s 90 percent of our business and hugely important for us.”
Ho said the bank has started to see increased activity in its business segments, particularly on the consumer front and in the stabilization of real estate values.
“We think there’s reason for cautious optimism from an economic standpoint here in the islands, and that is obviously impacting our credit quality in a positive way,” Ho said. “We’ve logged improvement in credit quality for at least three quarters now, and our assumption is we’ll continue to see that. I guess the big ‘X factor’ is what happens with the Japanese situation. We’re obviously concerned like the rest of the community, but it’s a little too early to determine how much an impact that will have on the economic recovery.”
Bank of Hawaii’s stock, which traded as high as $49.22 yesterday, ended off 28 cents, or 0.6 percent, to $47.39.
The securities gains came from the bank trying to take the risk out of its balance sheet by selling longer-term government securities in favor of shorter-term securities due to the rising interest-rate environment. Rising interest rates also helped the bank improve its net interest margin, which is the difference between what it pays depositors and what it brings in from loans. Bank of Hawaii’s net interest margin was 3.24 percent in the first quarter. That was worse than the 3.72 percent in the year-earlier quarter but better than the 3.15 percent in the fourth quarter.
Analyst Brett Rabatin of Birmingham, Ala.-based Sterne Agee said credit quality and better margins “drove the quarter in terms of upside.”
“I think it was a good quarter in a still-challenging environment,” Rabatin said. “Bank of Hawaii obviously had stellar asset-quality trends through the downturn. Their credit quality never got to be peer-like because they had less exposure to high-risk borrowers and loan types like construction. So they’ve definitely seen lower charge-offs from consumer trends and nonperforming assets. Generally, I think that’s indicative of an improving economy.”
Bank of Hawaii set aside just $4.7 million to cover potential loan losses in the first quarter, compared with $20.7 million a year earlier and $5.3 million in the fourth quarter of 2010.
Total assets rose 4.2 percent to $13 billion from $12.4 billion. First Hawaiian Bank ranks first in the state in total assets with $15.2 billion.
Loans and leases declined 5 percent to $5.3 billion from $5.6 billion. And deposits gained 4.4 percent to $9.9 billion from $9.5 billion.
Revenue fell 14.4 percent to $153.6 million from $179.4 million. Net interest income declined 7.4 percent to $99.7 million from $107.7 million. Noninterest income, which includes money earned from fees and charges, fell 24.9 percent to $53.9 million from $71.8 million.
Ho said the bank generated $2 million less in debit card overdraft fees last quarter from the year-earlier period after a federal law went into effect in the middle of last year that required consumers to give their permission for banks to assess overdraft charges.
The bank also maintained its quarterly dividend at 45 cents a share. It will be payable June 14 to shareholders of record as of the close of business on May 31.
CEO Peter Ho says an improving Hawaii economy is leading to better credit quality
By Dave Segal
Article from: Star-Advertiser
Bank of Hawaii Corp. said its loan portfolio and interest margins are continuing to benefit from the state’s improving economy.
Hawaii’s second-largest bank in terms of assets blew past analysts’ first-quarter earnings estimates by 16 cents yesterday even as net income fell 19.7 percent from the year-ago period.
Bank of Hawaii had earnings of $42.4 million, or 88 cents a share. Analysts had expected the bank to earn 72 cents a share. A year earlier, the bank earned $52.7 million, or $1.09 a share, but that included net gains of $20 million from the sale of investment securities. Last quarter, the bank had securities gains of just $6.1 million.
Peter Ho, chairman, president and CEO of Bank of Hawaii, said he was pleased with the first-quarter results, adding that the improving economy in Hawaii was largely behind it.
“All roads go back to the economy,” Ho said. “We have seen for several quarters now continued improvement in the Hawaiian economy, and that’s 90 percent of our business and hugely important for us.”
Ho said the bank has started to see increased activity in its business segments, particularly on the consumer front and in the stabilization of real estate values.
“We think there’s reason for cautious optimism from an economic standpoint here in the islands, and that is obviously impacting our credit quality in a positive way,” Ho said. “We’ve logged improvement in credit quality for at least three quarters now, and our assumption is we’ll continue to see that. I guess the big ‘X factor’ is what happens with the Japanese situation. We’re obviously concerned like the rest of the community, but it’s a little too early to determine how much an impact that will have on the economic recovery.”
Bank of Hawaii’s stock, which traded as high as $49.22 yesterday, ended off 28 cents, or 0.6 percent, to $47.39.
The securities gains came from the bank trying to take the risk out of its balance sheet by selling longer-term government securities in favor of shorter-term securities due to the rising interest-rate environment. Rising interest rates also helped the bank improve its net interest margin, which is the difference between what it pays depositors and what it brings in from loans. Bank of Hawaii’s net interest margin was 3.24 percent in the first quarter. That was worse than the 3.72 percent in the year-earlier quarter but better than the 3.15 percent in the fourth quarter.
Analyst Brett Rabatin of Birmingham, Ala.-based Sterne Agee said credit quality and better margins “drove the quarter in terms of upside.”
“I think it was a good quarter in a still-challenging environment,” Rabatin said. “Bank of Hawaii obviously had stellar asset-quality trends through the downturn. Their credit quality never got to be peer-like because they had less exposure to high-risk borrowers and loan types like construction. So they’ve definitely seen lower charge-offs from consumer trends and nonperforming assets. Generally, I think that’s indicative of an improving economy.”
Bank of Hawaii set aside just $4.7 million to cover potential loan losses in the first quarter, compared with $20.7 million a year earlier and $5.3 million in the fourth quarter of 2010.
Total assets rose 4.2 percent to $13 billion from $12.4 billion. First Hawaiian Bank ranks first in the state in total assets with $15.2 billion.
Loans and leases declined 5 percent to $5.3 billion from $5.6 billion. And deposits gained 4.4 percent to $9.9 billion from $9.5 billion.
Revenue fell 14.4 percent to $153.6 million from $179.4 million. Net interest income declined 7.4 percent to $99.7 million from $107.7 million. Noninterest income, which includes money earned from fees and charges, fell 24.9 percent to $53.9 million from $71.8 million.
Ho said the bank generated $2 million less in debit card overdraft fees last quarter from the year-earlier period after a federal law went into effect in the middle of last year that required consumers to give their permission for banks to assess overdraft charges.
The bank also maintained its quarterly dividend at 45 cents a share. It will be payable June 14 to shareholders of record as of the close of business on May 31.
Tuesday, April 19, 2011
April Economic Outlook
Spring in the Market
Cherry blossoms sprouting around the Washington, DC area were a sure sign that spring had arrived after a cold winter. As these flowers were in full bloom, the U.S. Department of Labor released the employment report for March: Unemployment declined for the fourth straight month to 8.8 percent, and net employment sprung up by 216,000, the largest monthly job gain since last May and a hopeful signal that the labor market was warming up. On a March-over-March basis, employment was up by 1.3 million.The March employment spurt was largely reflected in several service-providing industries, mining, and manufacturing. In contrast, local government employment was down again, and construction and real estate employment remained weak. Construction jobs have largely trended downward over the past five years, with total construction employment down nearly 30 percent from its peak in April 2006. Likewise, jobs in the real estate industry (which is distinct from construction in the Labor Department’s count) remain more than 100,000 below (7 percent less than) the peak during the spring of 2006. While the monthly job gains for this sector have been weak and inconsistent, nonetheless real estate employment was up by 10,000 since last November.
The housing market may also be poised to shake off the frigid sales pace of January and February, when new home sales slipped to the lowest pace since the Census Bureau began the series in 1963. Driven by low mortgage rates and home prices well below peaks, homebuyer affordability is at the highest level in at least forty years, according to the National Association of Realtors®.
Indeed, sales contract signings for existing homes were up in February, positioning the market for a bounce up in settlements during the second quarter, the traditional time for the seasonal upswing in sales. interest rates will inch higher over 2011, reducing the financial gain and incentive to refinance. The rental market should continue to have gradually warmer market conditions as well, with rents continuing to pickup and vacancies dipping on class-A properties and in stronger metro areas. Rents and vacancy rates are also stabilizing for most other properties and locales.
The encouraging labor market report coupled with high homebuyer affordability should translate into a home-sales pick up, starting this spring. Sales comparisons with a year ago wil lunderstate sales growth, because these comparisons are affected by the 2010 tax-credit that helped to bring many buyers into the market through last April. Look for home sales to be up about 5 percent in 2011 compared with 2010, on a calendar year basis.
With the Federal Reserve maintaining its accommodative monetary policy and Treasury note purchase program, short-term rates will remain low and supportive of household borrowing. The coupon difference between 30-year and 15-year fixed-rate mortgages has gradually widened to about three-quarters of a percentage point, in part reflecting the lower yields on shorter-term instruments. Homebuyers generally opt for 30-year financing, while borrowers who refinance tend to choose 15-year (and to a lesser extent, 20-year) fixed-rate loans. Refinancers not only benefit from the much lower interest rate on 15-year loans, but the faster amortization schedule means they accumulate home equity wealth more quickly. While refinance continues to account for over two-thirds of all loan applications, it will likely account for a much smaller share later this year, for two important reasons. First, the number of borrowers who are “in-the-money” and financially positioned to refinance falls with each passing week, as more close on their new low-rate loan. Second, the consensus view is that long-term. So expect the economy and housing market to follow the cherry trees’ lead: Shake off the cold and show a bit of spring in activity.
http://www.freddiemac.com/news/finance/docs/Apr_2011_public_outlook.pdf
Frank E. Nothaft
Chief Economist
Opinions, estimates, forecasts and other views contained in this document are those of Freddie Mac’s Office of the Chief Economist, do not necessarily represent the views of Freddie Mac or its management, should not be construed as indicating Freddie Mac’s business prospects or expected results, and are subject to change without notice. Although the Office of the Chief Economist attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. The information is therefore provided on an “as is” basis, with no warranties of any kind whatsoever.
Information from this document may be used with proper attribution. Alteration of this document is strictly prohibited.
© 2011 by Freddie Mac.
Cherry blossoms sprouting around the Washington, DC area were a sure sign that spring had arrived after a cold winter. As these flowers were in full bloom, the U.S. Department of Labor released the employment report for March: Unemployment declined for the fourth straight month to 8.8 percent, and net employment sprung up by 216,000, the largest monthly job gain since last May and a hopeful signal that the labor market was warming up. On a March-over-March basis, employment was up by 1.3 million.The March employment spurt was largely reflected in several service-providing industries, mining, and manufacturing. In contrast, local government employment was down again, and construction and real estate employment remained weak. Construction jobs have largely trended downward over the past five years, with total construction employment down nearly 30 percent from its peak in April 2006. Likewise, jobs in the real estate industry (which is distinct from construction in the Labor Department’s count) remain more than 100,000 below (7 percent less than) the peak during the spring of 2006. While the monthly job gains for this sector have been weak and inconsistent, nonetheless real estate employment was up by 10,000 since last November.
The housing market may also be poised to shake off the frigid sales pace of January and February, when new home sales slipped to the lowest pace since the Census Bureau began the series in 1963. Driven by low mortgage rates and home prices well below peaks, homebuyer affordability is at the highest level in at least forty years, according to the National Association of Realtors®.
Indeed, sales contract signings for existing homes were up in February, positioning the market for a bounce up in settlements during the second quarter, the traditional time for the seasonal upswing in sales. interest rates will inch higher over 2011, reducing the financial gain and incentive to refinance. The rental market should continue to have gradually warmer market conditions as well, with rents continuing to pickup and vacancies dipping on class-A properties and in stronger metro areas. Rents and vacancy rates are also stabilizing for most other properties and locales.
The encouraging labor market report coupled with high homebuyer affordability should translate into a home-sales pick up, starting this spring. Sales comparisons with a year ago wil lunderstate sales growth, because these comparisons are affected by the 2010 tax-credit that helped to bring many buyers into the market through last April. Look for home sales to be up about 5 percent in 2011 compared with 2010, on a calendar year basis.
With the Federal Reserve maintaining its accommodative monetary policy and Treasury note purchase program, short-term rates will remain low and supportive of household borrowing. The coupon difference between 30-year and 15-year fixed-rate mortgages has gradually widened to about three-quarters of a percentage point, in part reflecting the lower yields on shorter-term instruments. Homebuyers generally opt for 30-year financing, while borrowers who refinance tend to choose 15-year (and to a lesser extent, 20-year) fixed-rate loans. Refinancers not only benefit from the much lower interest rate on 15-year loans, but the faster amortization schedule means they accumulate home equity wealth more quickly. While refinance continues to account for over two-thirds of all loan applications, it will likely account for a much smaller share later this year, for two important reasons. First, the number of borrowers who are “in-the-money” and financially positioned to refinance falls with each passing week, as more close on their new low-rate loan. Second, the consensus view is that long-term. So expect the economy and housing market to follow the cherry trees’ lead: Shake off the cold and show a bit of spring in activity.
http://www.freddiemac.com/news/finance/docs/Apr_2011_public_outlook.pdf
Frank E. Nothaft
Chief Economist
Opinions, estimates, forecasts and other views contained in this document are those of Freddie Mac’s Office of the Chief Economist, do not necessarily represent the views of Freddie Mac or its management, should not be construed as indicating Freddie Mac’s business prospects or expected results, and are subject to change without notice. Although the Office of the Chief Economist attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. The information is therefore provided on an “as is” basis, with no warranties of any kind whatsoever.
Information from this document may be used with proper attribution. Alteration of this document is strictly prohibited.
© 2011 by Freddie Mac.
Saturday, April 16, 2011
Hawaii’s Unemployment Rate Continues To Be Significantly Lower Than The National U.S. Rate
Hawaii jobless rate holds at 6.3 percent
By Dave Segal
Article from: Star-Advertiser
Hawaii’s seasonally adjusted unemployment rate remained at 6.3 percent in March for the third straight month, according to data released today by the state Department of Labor and Industrial Relations.
The trade, transportation and utilities grouping comprised the greatest job growth, expanding by 900 jobs from February. Government jobs fell by 1,100.
Hawaii’s labor force grew to 633,950 from 631,900 in the previous month with those employed rising to 594,000 from 591,950 and those unemployed remaining flat at 39,950.
A year earlier, Hawaii’s unemployment rate was at 6.8 percent.
The state still continues to far outpace the U.S., which had an unemployment rate of 8.8 percent in March.
For the counties, whose numbers are calculated on a not-seasonally adjusted basis, Honolulu fell to 5.1 percent from 5.3 percent in February, Hawaii County remained at 9.5 percent, Kauai fell to 8.5 percent from 8.6 percent and Maui County declined to 7.8 percent from 8 percent.
Separately in Maui County, the island of Maui fell to 7.8 percent from 7.9 percent, Molokai dropped to 10.8 percent from 11.1 percent and Lanai declined to 5.4 percent from 5.8 percent.
By Dave Segal
Article from: Star-Advertiser
Hawaii’s seasonally adjusted unemployment rate remained at 6.3 percent in March for the third straight month, according to data released today by the state Department of Labor and Industrial Relations.
The trade, transportation and utilities grouping comprised the greatest job growth, expanding by 900 jobs from February. Government jobs fell by 1,100.
Hawaii’s labor force grew to 633,950 from 631,900 in the previous month with those employed rising to 594,000 from 591,950 and those unemployed remaining flat at 39,950.
A year earlier, Hawaii’s unemployment rate was at 6.8 percent.
The state still continues to far outpace the U.S., which had an unemployment rate of 8.8 percent in March.
For the counties, whose numbers are calculated on a not-seasonally adjusted basis, Honolulu fell to 5.1 percent from 5.3 percent in February, Hawaii County remained at 9.5 percent, Kauai fell to 8.5 percent from 8.6 percent and Maui County declined to 7.8 percent from 8 percent.
Separately in Maui County, the island of Maui fell to 7.8 percent from 7.9 percent, Molokai dropped to 10.8 percent from 11.1 percent and Lanai declined to 5.4 percent from 5.8 percent.
Friday, April 15, 2011
Thursday, April 14, 2011
March Foreclosure Filings Were The Lowest In Hawaii In Nearly Two Years ~ But RealtyTrac Indicates Trend Could Change
Foreclosure counts expected to rebound
Lenders will soon resume processing of delinquencies
By Andrew Gomes
Article from: Star-Advertiser
It’s been relatively calm on Hawaii’s home foreclosure front during the past several months, but the storm could soon return.
Foreclosure activity in Hawaii real estate declined for a fourth consecutive month in March, falling 37 percent from a year earlier, according to a report industry research firm RealtyTrac released yesterday.
The count — 691 foreclosure filings last month — was the lowest in nearly two years. It was also less than half the record 1,629 reached in August.
But RealtyTrac and local foreclosure attorneys say recent declines likely will be over soon when several major lenders resume more normal processing of delinquent mortgage cases after resolving issues with improper case documentation.
Marvin Dang, a Honolulu foreclosure attorney, said he expects a rebound as early as this month or next month.
“There should be some increases in foreclosures, though it’s hard to say how much,” he said.
Daren Blomquist, a RealtyTrac spokesman, said rebounds after the artificial lulls have already occurred in a few other states, and the trend most certainly will follow for Hawaii.
“Over the last three or four months, the (foreclosure) numbers have just fallen off a cliff,” he said. “It’s really too sudden of a decline to say that it’s a true market recovery.”
FORECLOSURE RANKING
Nevada had one foreclosure for every 88 homes in March. Below are the highest and lowest foreclosure filings:
» 1. Nevada 88
» 2. Arizona 175
» 3. California 223
» 4. Utah 278
» 5. Michigan 311
» 16. Hawaii 746
» 46. S. Dakota 3,264
» 47. Mississippi 3,456
» 48. W. Virginia 6,294
» 49. N. Dakota 12,657
» 50. Vermont 52,374
Source: RealtyTrac
Some lenders began announcing in October that they were voluntarily holding back on filing new foreclosure cases or selling repossessed homes after their loan documentation practices were called into question and rejected in some courts.
Since then, lenders including Bank of America, JPMorgan Chase and GMAC Mortgage have been addressing deficiencies. If problems are resolved, there will be a backlog of delinquent mortgages to process, though the size of a resurgence may be limited by processing capacity and take several months or more to return to more normal levels.
Eventually as the economy recovers, foreclosure filings will subside, but industry observers say it’s too soon to predict when that will likely happen given present instability in the economy and housing market.
Last month, foreclosure filings nationally fell 35 percent to 239,795 from 367,056 in March 2010, which represented the highest monthly total since RealtyTrac began publishing the data in 2005.
The national rate last month represented one foreclosure filing for every 542 households.
Hawaii had the 16th highest rate at one filing for every 746 households.
The worst rate was in Nevada, where there was one filing for every 88 households.
Kauai had the next best rate at one filing per 793 households, and the lowest number of filings at 38.
On Maui there were 161 filings, or one for every 414 households.
The worst rate was on Hawaii with one filing per 397 households based on 203 filings.
RealtyTrac counts three types of filings in its data that can occur at different stages of the foreclosure process — initial default notices, auction notices and lender repossessions.
Statewide, most Hawaii foreclosure filings, 365, were auction notices. Another 280 filings were lender repossessions, while just 46 filings were default notices.
The methodology produces a somewhat imprecise measure of how many homes are in the process of foreclosure because RealtyTrac counts different types of filings on the same property if they occur in different months, which means some properties may be counted in more than one month.
RealtyTrac also doesn’t exclude commercial property from its count, which means popular vacation property in Hawaii such as time shares and condominium-hotel units can be among RealtyTrac’s tally.
Lenders will soon resume processing of delinquencies
By Andrew Gomes
Article from: Star-Advertiser
It’s been relatively calm on Hawaii’s home foreclosure front during the past several months, but the storm could soon return.
Foreclosure activity in Hawaii real estate declined for a fourth consecutive month in March, falling 37 percent from a year earlier, according to a report industry research firm RealtyTrac released yesterday.
The count — 691 foreclosure filings last month — was the lowest in nearly two years. It was also less than half the record 1,629 reached in August.
But RealtyTrac and local foreclosure attorneys say recent declines likely will be over soon when several major lenders resume more normal processing of delinquent mortgage cases after resolving issues with improper case documentation.
Marvin Dang, a Honolulu foreclosure attorney, said he expects a rebound as early as this month or next month.
“There should be some increases in foreclosures, though it’s hard to say how much,” he said.
Daren Blomquist, a RealtyTrac spokesman, said rebounds after the artificial lulls have already occurred in a few other states, and the trend most certainly will follow for Hawaii.
“Over the last three or four months, the (foreclosure) numbers have just fallen off a cliff,” he said. “It’s really too sudden of a decline to say that it’s a true market recovery.”
FORECLOSURE RANKING
Nevada had one foreclosure for every 88 homes in March. Below are the highest and lowest foreclosure filings:
» 1. Nevada 88
» 2. Arizona 175
» 3. California 223
» 4. Utah 278
» 5. Michigan 311
» 16. Hawaii 746
» 46. S. Dakota 3,264
» 47. Mississippi 3,456
» 48. W. Virginia 6,294
» 49. N. Dakota 12,657
» 50. Vermont 52,374
Source: RealtyTrac
Some lenders began announcing in October that they were voluntarily holding back on filing new foreclosure cases or selling repossessed homes after their loan documentation practices were called into question and rejected in some courts.
Since then, lenders including Bank of America, JPMorgan Chase and GMAC Mortgage have been addressing deficiencies. If problems are resolved, there will be a backlog of delinquent mortgages to process, though the size of a resurgence may be limited by processing capacity and take several months or more to return to more normal levels.
Eventually as the economy recovers, foreclosure filings will subside, but industry observers say it’s too soon to predict when that will likely happen given present instability in the economy and housing market.
Last month, foreclosure filings nationally fell 35 percent to 239,795 from 367,056 in March 2010, which represented the highest monthly total since RealtyTrac began publishing the data in 2005.
The national rate last month represented one foreclosure filing for every 542 households.
Hawaii had the 16th highest rate at one filing for every 746 households.
The worst rate was in Nevada, where there was one filing for every 88 households.
Kauai had the next best rate at one filing per 793 households, and the lowest number of filings at 38.
On Maui there were 161 filings, or one for every 414 households.
The worst rate was on Hawaii with one filing per 397 households based on 203 filings.
RealtyTrac counts three types of filings in its data that can occur at different stages of the foreclosure process — initial default notices, auction notices and lender repossessions.
Statewide, most Hawaii foreclosure filings, 365, were auction notices. Another 280 filings were lender repossessions, while just 46 filings were default notices.
The methodology produces a somewhat imprecise measure of how many homes are in the process of foreclosure because RealtyTrac counts different types of filings on the same property if they occur in different months, which means some properties may be counted in more than one month.
RealtyTrac also doesn’t exclude commercial property from its count, which means popular vacation property in Hawaii such as time shares and condominium-hotel units can be among RealtyTrac’s tally.
Wednesday, April 13, 2011
Vacant Lot For Sale
Unobstructed and breathtaking ocean views of both coastlines can be seen from this fantastic property.
In addition enjoy outstanding views of scenic and ever changing Haleakala. Build your dream home in this prime, level site in the Koa at Kehalani community. Located directly below Wailuku Heights this property offers you all the conveniences of in-town amenities plus employment centers near the hospital and central State and County offices. Enjoy world renowned sandy beaches, golf courses, tennis courts, shops & dining.
Contact Bob Hansen, BROKER, 808-283-9456 or Donna D. Hansen, Realtor (S) 808-280-1650 for a showing today!
Tuesday, April 12, 2011
Maui March 2011 Sales Statistics
Maui March 2011 Sales Statistics
Brief Maui Statistics Overview:
March’s Sales Volume –March’s Residential Sales increased to 88 homes sold, while Condo Sales rose to 124 units sold. Land sales came in at 11 lots sold.
March’s Median SALES prices – Home median prices rose slightly to $450,000 while Condo median prices came in at $289,000. Land median price was $500,000.
Days on Market for Residential homes = 151 DOM, Condos = 180 DOM, Land = 231 DOM.(General DOM Note: this is the average DOM for the properties that SOLD. If predominantly OLD inventory sells, it can move this indicator upward, and vice versa. RAM’s Days on Market are calculated from List Date to Closing Date [not contract date]. As such, it includes approximately 60 days of escrow time.) Also – Short Sales transactions can often take 4-6 months to close thereby extending the marketplace’s average DOM.
“Year to Date Sales” numbers only compare January-March 2011 to January-March 2010. Short timeframe (monthly) views do not necessarily reflect the longer timeframe trends.
Year to Date: Comparing January-March 2011 to January-March 2010 Residential unit sales rose (+14%), average sold price = $681,682 (+1%), median price = $450,000 (-4%) and total dollar volume
sold = $135,654,619 (+16%).
Condo unit sales increased (+5%), average sold price = $491,522 (-35%), median price = $320,000 (-25%). Total Condo dollar volume sold = $151,880,159 (-32%).
Land – NOTE: Land Lot sales are such a small sampling that statistics in this property class are not necessarily reliable indicators. Land lot sales decreased (-13%), average sold price = $849,919 (+54%), median price = $310,000 (-38%), Total dollar volume = $22,947,826 (+34%).
Also, total sales for immediately past 12 months: Residential = 840, Condo = 1,163, Land = 123.
April 9, 2011 – Active/Pending/Contingent status inventory:
April Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May April
Homes 958 964 953 963 974 976 1,001 981 994 1,008 1,007 1,040 1,059
Condos 1,305 1,331 1,379 1,383 1,371 1,347 1,394 1,455 1,503 1,412 1,423 1,449 1,494
Land 554 557 566 569 601 596 601 620 604 601 591 579 585
IN A NUT SHELL…… the good, the bad….. AND THE ROAD AHEAD ……
Strong buyer-showing activity is now evidenced in actual reported sales. Residential and Condo unit sales for March show just over a 25% increase from February 2011. The next few months will reveal if this is just an uptick or a trend that lasts. Inventories have declined somewhat over the past 12 months and include many short sales and REO (bank owned) properties which will need to be absorbed as sales before we can move ahead to a more normal marketplace. Interest Rates are remaining near historic record lows which may help motivate would-be
Buyers to go ahead and buy IF they can qualify. Current World and US events will have ripple effects on cost of living, consumer confidence, and eventually our Real Estate Market.
FOR SELLERS: Sellers who don’t really need to sell (just “fishing?”) should stay off the market, and clear the marketplace for those who REALLY have to sell. UNLESS- you are motivated to Upsize, Downsize or
Upgrade – While selling now will net less, your next property will cost less. Sharpen your pencil, talk to your CPA and Realtor® to explore the hidden benefits or consequences. Make no assumptions that will sting later.
To be successful, Sellers need to beat competing properties with better property condition, REALISTIC pricing, good marketing, and flexible, creative terms (Seller Second Loan, Agreement of Sale, Lease-with-option-to-buy, and Sale-with-lease-back to seller). Days on Market figures show that properties priced right will sell in a reasonable timeframe. “Priced Right” is still the determining factor. BEST Deals are selling, everything else is getting old. Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to encourage knowledgeable offers from realistic Buyers. This can prevent anticipated escrow fallout or Buyers whittling your price down during the transaction when previously unknown facts come to light. Unrealistic Sellers continue to be ignored by the market and miss current opportunities that later become woefully apparent. They may even end up in a Short Sale or Foreclosure situation that could have been avoided.
FOR BUYERS: Low interest rates may start to inch up. Buyers should get Pre-Approved so they can shop in confidence (fewer last minute disappointments due to non-funding loans). More “short-sales” and foreclosures are happening in the marketplace, yet they can be less of a bargain than they seem, requiring more hurdles to leap and more time (often 4-6 months) to close, if at all. Be prepared, but BE REALISTIC. Lenders are much more stringent in requirements for loan approval.
First-Time Home Buyers – Many programs are available….. attend a First-Time Home Buyers workshop, get familiar with the process, get qualified/approved, do your homework to get your own home. Many current owners never thought they would be able to own until they attended a workshop, discovered they could own a home, and are glad they did. This low point in the market is your rare chance, so check it out carefully.
Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to different conclusions that the overall view.
Maui’s market place is much smaller than Oahu’s, and a few high or low sales have a greater effect on the statistical numbers without necessarily indicating a big market swing one way or another.
Information provided by The Realtors Association of Maui (RAM)
For Questions Please Call The Hansen Ohana (808)879-3667
Brief Maui Statistics Overview:
March’s Sales Volume –March’s Residential Sales increased to 88 homes sold, while Condo Sales rose to 124 units sold. Land sales came in at 11 lots sold.
March’s Median SALES prices – Home median prices rose slightly to $450,000 while Condo median prices came in at $289,000. Land median price was $500,000.
Days on Market for Residential homes = 151 DOM, Condos = 180 DOM, Land = 231 DOM.(General DOM Note: this is the average DOM for the properties that SOLD. If predominantly OLD inventory sells, it can move this indicator upward, and vice versa. RAM’s Days on Market are calculated from List Date to Closing Date [not contract date]. As such, it includes approximately 60 days of escrow time.) Also – Short Sales transactions can often take 4-6 months to close thereby extending the marketplace’s average DOM.
“Year to Date Sales” numbers only compare January-March 2011 to January-March 2010. Short timeframe (monthly) views do not necessarily reflect the longer timeframe trends.
Year to Date: Comparing January-March 2011 to January-March 2010 Residential unit sales rose (+14%), average sold price = $681,682 (+1%), median price = $450,000 (-4%) and total dollar volume
sold = $135,654,619 (+16%).
Condo unit sales increased (+5%), average sold price = $491,522 (-35%), median price = $320,000 (-25%). Total Condo dollar volume sold = $151,880,159 (-32%).
Land – NOTE: Land Lot sales are such a small sampling that statistics in this property class are not necessarily reliable indicators. Land lot sales decreased (-13%), average sold price = $849,919 (+54%), median price = $310,000 (-38%), Total dollar volume = $22,947,826 (+34%).
Also, total sales for immediately past 12 months: Residential = 840, Condo = 1,163, Land = 123.
April 9, 2011 – Active/Pending/Contingent status inventory:
April Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June May April
Homes 958 964 953 963 974 976 1,001 981 994 1,008 1,007 1,040 1,059
Condos 1,305 1,331 1,379 1,383 1,371 1,347 1,394 1,455 1,503 1,412 1,423 1,449 1,494
Land 554 557 566 569 601 596 601 620 604 601 591 579 585
IN A NUT SHELL…… the good, the bad….. AND THE ROAD AHEAD ……
Strong buyer-showing activity is now evidenced in actual reported sales. Residential and Condo unit sales for March show just over a 25% increase from February 2011. The next few months will reveal if this is just an uptick or a trend that lasts. Inventories have declined somewhat over the past 12 months and include many short sales and REO (bank owned) properties which will need to be absorbed as sales before we can move ahead to a more normal marketplace. Interest Rates are remaining near historic record lows which may help motivate would-be
Buyers to go ahead and buy IF they can qualify. Current World and US events will have ripple effects on cost of living, consumer confidence, and eventually our Real Estate Market.
FOR SELLERS: Sellers who don’t really need to sell (just “fishing?”) should stay off the market, and clear the marketplace for those who REALLY have to sell. UNLESS- you are motivated to Upsize, Downsize or
Upgrade – While selling now will net less, your next property will cost less. Sharpen your pencil, talk to your CPA and Realtor® to explore the hidden benefits or consequences. Make no assumptions that will sting later.
To be successful, Sellers need to beat competing properties with better property condition, REALISTIC pricing, good marketing, and flexible, creative terms (Seller Second Loan, Agreement of Sale, Lease-with-option-to-buy, and Sale-with-lease-back to seller). Days on Market figures show that properties priced right will sell in a reasonable timeframe. “Priced Right” is still the determining factor. BEST Deals are selling, everything else is getting old. Pro-Active Sellers are getting their properties appraised, inspected and surveyed in advance to encourage knowledgeable offers from realistic Buyers. This can prevent anticipated escrow fallout or Buyers whittling your price down during the transaction when previously unknown facts come to light. Unrealistic Sellers continue to be ignored by the market and miss current opportunities that later become woefully apparent. They may even end up in a Short Sale or Foreclosure situation that could have been avoided.
FOR BUYERS: Low interest rates may start to inch up. Buyers should get Pre-Approved so they can shop in confidence (fewer last minute disappointments due to non-funding loans). More “short-sales” and foreclosures are happening in the marketplace, yet they can be less of a bargain than they seem, requiring more hurdles to leap and more time (often 4-6 months) to close, if at all. Be prepared, but BE REALISTIC. Lenders are much more stringent in requirements for loan approval.
First-Time Home Buyers – Many programs are available….. attend a First-Time Home Buyers workshop, get familiar with the process, get qualified/approved, do your homework to get your own home. Many current owners never thought they would be able to own until they attended a workshop, discovered they could own a home, and are glad they did. This low point in the market is your rare chance, so check it out carefully.
Disclaimer: Zooming in on the figures of a specific geographic area or property type may lead to different conclusions that the overall view.
Maui’s market place is much smaller than Oahu’s, and a few high or low sales have a greater effect on the statistical numbers without necessarily indicating a big market swing one way or another.
Information provided by The Realtors Association of Maui (RAM)
For Questions Please Call The Hansen Ohana (808)879-3667
An Interesting Look At A&B ~ A 141 Year Old Hawaii Business
A&B long the target of takeovers
Alexander & Baldwin Inc. is the last surviving member of the Big Five firms that dominated Hawaii’s economy
By Andrew Gomes
Article from: Star-Advertiser
Alexander & Baldwin Inc. has been in business 141 years, and for most of that time the kamaaina company has stood on three legs, each representing a major industry closely tied to Hawaii — agriculture, shipping and real estate.
The stool has been pretty sturdy, enabling the Honolulu-based company to realize or improve gains from one industry with the help of another, or to rely on different legs to weather downturns in others.
But at times in A&B’s history, influential shareholders have questioned the structure and made attempts to sell off pieces of the publicly owned firm.
Two weeks ago, a new plan to dismantle the stool is suspected of being set in motion by New York hedge fund manager Bill Ackman, who recently bought 10 percent of A&B with an associate to become the company’s largest shareholder.
Ackman hasn’t publicly detailed his intent, but said in a broad statement that he plans to hold discussions with A&B management, directors, other stockholders and other parties “concerning the business, assets, capitalization, financial condition, operations, governance, strategy and future plans” of the company.
A&B has said it is open to hearing Ackman’s ideas, but won’t comment on the subject of discussions.
Stock analysts and other observers familiar with A&B believe Ackman will seek some kind of breakup of the company, which has 2,300 employees.
“A lot of people will look at a company and say the parts are worth more than the whole,” said Bob Sigall, a local business consultant and Hawaii Pacific University marketing professor who produces the book series “The Companies We Keep.”
“From a Hawaii point of view, I’m skeptical, I’m cautious and I’m worried.”
BREAKING UP IS HARD TO DO
Supporters of keeping A&B intact list these reasons:
• Control of Matson, Hawaii’s largest delivery service of goods from the mainland, is best held by a Hawaii company.
• Loss of prime farmland could lead to the shutdown of the state’s last sugar plantation, Hawaiian Commercial & Sugar Co.
• A breakup could reduce or eliminate charitable giving. The A&B Foundation donated $1.3 million last year to Hawaii nonprofit organizations. Since A&B?established the foundation, it has donated more than $18 million to nonprofits mostly in Hawaii.
A giant perceived prize that often inspires wide eyes from shareholders seeking a breakup has been A&B’s 87,840 acres of land in Hawaii largely used for growing sugarcane on Maui and coffee on Kauai.
George Pickral, a research analyst with Arkansas-based financial services firm Stephens Inc., values A&B’s real estate holdings, which include the farmland and developed commercial property, at nearly $2.3 billion.
A&B doesn’t break out the value of its Hawaii real estate. All its assets — including the land, its fleet of Matson Navigation Co. cargo ships, shopping centers and office buildings — are worth about $2.5 billion, according to the company’s 2010 annual report.
A&B lists the average cost for its Hawaii land at $150 per acre, or a relatively minuscule $13 million for nearly 88,000 acres. The company regards most of its Hawaii real estate as having relatively low present value because it is incredibly difficult and time-consuming to convert farmland to higher-value uses such as residential or commercial development under state and county land-use regulations.
The company says it has the best keys to unlock the long-term value of its land while also producing significant annual profit from its interrelated operations.
“Hawaii’s multi-tiered entitlement process can be challenging, at times taking years to move a project from application to approval,” A&B said in the report. “Our ability to navigate this process is one of the company’s core competencies.”
A&B has also been pretty adept at deflecting breakup efforts throughout its history. But the potential for big short-term rewards have led a number of major shareholders to take a crack at splitting the company apart.
Perhaps the most raucous breakup attempt was made in the 1980s by Harry Weinberg, a Hawaii stock speculator who at the time was one of the nation’s 100 wealthiest individuals.
Weinberg bought a 6 percent stake in A&B in 1978, which secured him a seat on the company’s board of directors. The activist investor failed to persuade A&B to sell its real estate or Matson, so he amassed more stock — roughly 25 percent — and asked other shareholders in 1985 to oust directors who didn’t support his plan.
In the fight for control, Weinberg criticized A&B for “squandering” money on sugar production and claiming there was no realistic way to accurately value its Hawaii land holdings that then covered 96,000 acres. “Ask yourself whether management really wants you to know what the land is worth?” Weinberg wrote in his letter to shareholders.
With Weinberg, A&B defended its diversified business model. The company touted its strong annual profit and called Weinberg’s claims about land values unrealistic.
Weinberg lost the shareholder vote by a roughly 60-40 margin. Later, A&B bought back most of Weinberg’s shares for more than $300 million with a caveat that he not influence the company for seven years.
Another contest for a piece of A&B, which proved successful, occurred about a decade earlier when A&B owned most of Maui Pineapple Co.
A group of A&B shareholders related to former Maui Pine general manager Colin C. Cameron helped Cameron win a seat on A&B’s board and pursue a plan to acquire A&B’s 54 percent stake in Maui Pine.
Cameron — whose father, J. Walter Cameron, was once chairman and president of A&B — was elected to A&B’s board in 1968 despite management opposition. A year later, Cameron announced the takeover bid that resulted in his family buying A&B’s stake in Maui Pine and acquiring control of that company and its 28,000 acres on the Valley Isle.
In a more recent case, a Connecticut-based hedge fund manager who once headed the federal Securities and Exchange Commission, Richard Breeden, snapped up about 15 percent of A&B stock in 2008 and made a disclosure about planned discussions with management similar to Ackman’s recent filing.
A&B declined to say whether the former regulator turned activist investor advocated for breaking up A&B. Breeden ended up selling his large stake in the company by 2009, according to reports filed by Breeden.
Some A&B insiders bristle at efforts by outsiders to break up the company, saying that management regularly reviews the idea with help from independent experts. To date, such internal reviews have deemed a breakup not to be in best interest of the company and shareholders.
Critics of the breakup plan say the idea is focused on short-term gains that could have several negative long-term impacts on A&B and the local economy.
A&B has long promoted the idea that control of Matson, Hawaii’s largest delivery service of goods from the Mainland, is best held by a Hawaii company.
Loss of prime farmland could lead to the shutdown of the state’s last sugar plantation, Hawaiian Commercial & Sugar Co., which has struggled financially over the past few years as A&B tries to find a way to possibly convert the operation to crop-based production of renewable energy.
A breakup also could reduce or eliminate charitable giving. The A&B Foundation donated $1.3 million last year to Hawaii nonprofit organizations along with $300,000 to mainland organizations. Since A&B established the foundation, it has donated more than $18 million to nonprofits mostly in Hawaii.
Another impact could be the end of what some consider Hawaii’s only remaining company of the Big Five, which dominated commerce when the economy of the islands was driven by agriculture.
A&B was the youngest of the Big Five. In just the past few decades, three of the four others — Amfac, C. Brewer & Co. and TheoDavies — were sold or liquidated and are no longer active. The fourth, Castle & Cooke, was acquired by billionaire David Murdock, who moved the company’s headquarters to California and changed its name to Dole Food Co. before spinning off its homebuilding division under the old name.
“I’d hate to see the last of the Big Five lost to Hawaii in some way,” said Sigall, the consultant and professor. “I think it would be a tragedy.”
A&B was established in 1870 by Samuel Alexander and Henry Baldwin, sons of missionaries who started a partnership growing 12 acres of sugarcane on Maui.
For much of its life, A&B concentrated on agriculture, as it expanded interests to sugar plantations on Kauai, the Big Island and Oahu. But A&B also was quick to begin diversifying.
In 1908, the company invested $200,000 for minority ownership in an upstart California-based shipping line started by William Matson. Close to 50 years later, A&B along with Amfac, C. Brewer and Castle & Cooke had acquired stakes in Matson that amounted to 74 percent.
In 1964, A&B bought out its big partners, and Matson became A&B’s largest operating asset, overtaking agribusiness, which later went into steep decline as sugar plantations closed. In 1969, A&B acquired the rest of Matson to make it a wholly owned subsidiary.
Meanwhile, real estate development had become a focus as A&B aimed to provide modern housing and commercial centers for plantation workers. A&B formed Kahului Development Co. in 1949 with the idea to build a “Dream City.” The first Kahului home was sold in 1950, and over the next few decades A&B expanded its real estate division with developments of retail, industrial, office and resort projects mainly on Maui.
A&B hasn’t been totally averse to selling significant pieces of its business, but has always maintained the foundation of its three legs.
In 1967, A&B sold its large insurance division. In 1989, A&B sold Wailea Resort, and a year later sold Maui Lani, a planned community for which A&B had obtained development approvals. The proceeds from the real estate sales were invested in developed mainland commercial property.
Most recently, A&B sold its Kauai Coffee Co. subsidiary last month to an Italian firm, though A&B retained ownership of the 3,000 acres under the farm.
Last year, transportation and real estate dominated A&B’s financial returns. The company reported that 54 percent of its $198 million operating profit came from transportation, 43 percent came from real estate and 3 percent came from agribusiness.
In its 2010 letter to shareholders, the company said: “We believe that A&B has never been better positioned to create value from its greatest assets: our Hawaii land and local knowledge, and Matson’s brand and expertise.”
Alexander & Baldwin Inc. is the last surviving member of the Big Five firms that dominated Hawaii’s economy
By Andrew Gomes
Article from: Star-Advertiser
Alexander & Baldwin Inc. has been in business 141 years, and for most of that time the kamaaina company has stood on three legs, each representing a major industry closely tied to Hawaii — agriculture, shipping and real estate.
The stool has been pretty sturdy, enabling the Honolulu-based company to realize or improve gains from one industry with the help of another, or to rely on different legs to weather downturns in others.
But at times in A&B’s history, influential shareholders have questioned the structure and made attempts to sell off pieces of the publicly owned firm.
Two weeks ago, a new plan to dismantle the stool is suspected of being set in motion by New York hedge fund manager Bill Ackman, who recently bought 10 percent of A&B with an associate to become the company’s largest shareholder.
Ackman hasn’t publicly detailed his intent, but said in a broad statement that he plans to hold discussions with A&B management, directors, other stockholders and other parties “concerning the business, assets, capitalization, financial condition, operations, governance, strategy and future plans” of the company.
A&B has said it is open to hearing Ackman’s ideas, but won’t comment on the subject of discussions.
Stock analysts and other observers familiar with A&B believe Ackman will seek some kind of breakup of the company, which has 2,300 employees.
“A lot of people will look at a company and say the parts are worth more than the whole,” said Bob Sigall, a local business consultant and Hawaii Pacific University marketing professor who produces the book series “The Companies We Keep.”
“From a Hawaii point of view, I’m skeptical, I’m cautious and I’m worried.”
BREAKING UP IS HARD TO DO
Supporters of keeping A&B intact list these reasons:
• Control of Matson, Hawaii’s largest delivery service of goods from the mainland, is best held by a Hawaii company.
• Loss of prime farmland could lead to the shutdown of the state’s last sugar plantation, Hawaiian Commercial & Sugar Co.
• A breakup could reduce or eliminate charitable giving. The A&B Foundation donated $1.3 million last year to Hawaii nonprofit organizations. Since A&B?established the foundation, it has donated more than $18 million to nonprofits mostly in Hawaii.
A giant perceived prize that often inspires wide eyes from shareholders seeking a breakup has been A&B’s 87,840 acres of land in Hawaii largely used for growing sugarcane on Maui and coffee on Kauai.
George Pickral, a research analyst with Arkansas-based financial services firm Stephens Inc., values A&B’s real estate holdings, which include the farmland and developed commercial property, at nearly $2.3 billion.
A&B doesn’t break out the value of its Hawaii real estate. All its assets — including the land, its fleet of Matson Navigation Co. cargo ships, shopping centers and office buildings — are worth about $2.5 billion, according to the company’s 2010 annual report.
A&B lists the average cost for its Hawaii land at $150 per acre, or a relatively minuscule $13 million for nearly 88,000 acres. The company regards most of its Hawaii real estate as having relatively low present value because it is incredibly difficult and time-consuming to convert farmland to higher-value uses such as residential or commercial development under state and county land-use regulations.
The company says it has the best keys to unlock the long-term value of its land while also producing significant annual profit from its interrelated operations.
“Hawaii’s multi-tiered entitlement process can be challenging, at times taking years to move a project from application to approval,” A&B said in the report. “Our ability to navigate this process is one of the company’s core competencies.”
A&B has also been pretty adept at deflecting breakup efforts throughout its history. But the potential for big short-term rewards have led a number of major shareholders to take a crack at splitting the company apart.
Perhaps the most raucous breakup attempt was made in the 1980s by Harry Weinberg, a Hawaii stock speculator who at the time was one of the nation’s 100 wealthiest individuals.
Weinberg bought a 6 percent stake in A&B in 1978, which secured him a seat on the company’s board of directors. The activist investor failed to persuade A&B to sell its real estate or Matson, so he amassed more stock — roughly 25 percent — and asked other shareholders in 1985 to oust directors who didn’t support his plan.
In the fight for control, Weinberg criticized A&B for “squandering” money on sugar production and claiming there was no realistic way to accurately value its Hawaii land holdings that then covered 96,000 acres. “Ask yourself whether management really wants you to know what the land is worth?” Weinberg wrote in his letter to shareholders.
With Weinberg, A&B defended its diversified business model. The company touted its strong annual profit and called Weinberg’s claims about land values unrealistic.
Weinberg lost the shareholder vote by a roughly 60-40 margin. Later, A&B bought back most of Weinberg’s shares for more than $300 million with a caveat that he not influence the company for seven years.
Another contest for a piece of A&B, which proved successful, occurred about a decade earlier when A&B owned most of Maui Pineapple Co.
A group of A&B shareholders related to former Maui Pine general manager Colin C. Cameron helped Cameron win a seat on A&B’s board and pursue a plan to acquire A&B’s 54 percent stake in Maui Pine.
Cameron — whose father, J. Walter Cameron, was once chairman and president of A&B — was elected to A&B’s board in 1968 despite management opposition. A year later, Cameron announced the takeover bid that resulted in his family buying A&B’s stake in Maui Pine and acquiring control of that company and its 28,000 acres on the Valley Isle.
In a more recent case, a Connecticut-based hedge fund manager who once headed the federal Securities and Exchange Commission, Richard Breeden, snapped up about 15 percent of A&B stock in 2008 and made a disclosure about planned discussions with management similar to Ackman’s recent filing.
A&B declined to say whether the former regulator turned activist investor advocated for breaking up A&B. Breeden ended up selling his large stake in the company by 2009, according to reports filed by Breeden.
Some A&B insiders bristle at efforts by outsiders to break up the company, saying that management regularly reviews the idea with help from independent experts. To date, such internal reviews have deemed a breakup not to be in best interest of the company and shareholders.
Critics of the breakup plan say the idea is focused on short-term gains that could have several negative long-term impacts on A&B and the local economy.
A&B has long promoted the idea that control of Matson, Hawaii’s largest delivery service of goods from the Mainland, is best held by a Hawaii company.
Loss of prime farmland could lead to the shutdown of the state’s last sugar plantation, Hawaiian Commercial & Sugar Co., which has struggled financially over the past few years as A&B tries to find a way to possibly convert the operation to crop-based production of renewable energy.
A breakup also could reduce or eliminate charitable giving. The A&B Foundation donated $1.3 million last year to Hawaii nonprofit organizations along with $300,000 to mainland organizations. Since A&B established the foundation, it has donated more than $18 million to nonprofits mostly in Hawaii.
Another impact could be the end of what some consider Hawaii’s only remaining company of the Big Five, which dominated commerce when the economy of the islands was driven by agriculture.
A&B was the youngest of the Big Five. In just the past few decades, three of the four others — Amfac, C. Brewer & Co. and TheoDavies — were sold or liquidated and are no longer active. The fourth, Castle & Cooke, was acquired by billionaire David Murdock, who moved the company’s headquarters to California and changed its name to Dole Food Co. before spinning off its homebuilding division under the old name.
“I’d hate to see the last of the Big Five lost to Hawaii in some way,” said Sigall, the consultant and professor. “I think it would be a tragedy.”
A&B was established in 1870 by Samuel Alexander and Henry Baldwin, sons of missionaries who started a partnership growing 12 acres of sugarcane on Maui.
For much of its life, A&B concentrated on agriculture, as it expanded interests to sugar plantations on Kauai, the Big Island and Oahu. But A&B also was quick to begin diversifying.
In 1908, the company invested $200,000 for minority ownership in an upstart California-based shipping line started by William Matson. Close to 50 years later, A&B along with Amfac, C. Brewer and Castle & Cooke had acquired stakes in Matson that amounted to 74 percent.
In 1964, A&B bought out its big partners, and Matson became A&B’s largest operating asset, overtaking agribusiness, which later went into steep decline as sugar plantations closed. In 1969, A&B acquired the rest of Matson to make it a wholly owned subsidiary.
Meanwhile, real estate development had become a focus as A&B aimed to provide modern housing and commercial centers for plantation workers. A&B formed Kahului Development Co. in 1949 with the idea to build a “Dream City.” The first Kahului home was sold in 1950, and over the next few decades A&B expanded its real estate division with developments of retail, industrial, office and resort projects mainly on Maui.
A&B hasn’t been totally averse to selling significant pieces of its business, but has always maintained the foundation of its three legs.
In 1967, A&B sold its large insurance division. In 1989, A&B sold Wailea Resort, and a year later sold Maui Lani, a planned community for which A&B had obtained development approvals. The proceeds from the real estate sales were invested in developed mainland commercial property.
Most recently, A&B sold its Kauai Coffee Co. subsidiary last month to an Italian firm, though A&B retained ownership of the 3,000 acres under the farm.
Last year, transportation and real estate dominated A&B’s financial returns. The company reported that 54 percent of its $198 million operating profit came from transportation, 43 percent came from real estate and 3 percent came from agribusiness.
In its 2010 letter to shareholders, the company said: “We believe that A&B has never been better positioned to create value from its greatest assets: our Hawaii land and local knowledge, and Matson’s brand and expertise.”
Saturday, April 9, 2011
Open House, Sunday 1-4 pm
COUNTRY LIVING AT IT’S BEST!
OPEN HOUSE, SUNDAY 1-4 PM
900 MALAIHI ROAD, WAILUKU
Incredible estate perched on over 4 acres of level land in a beautiful area of Maui. Magnificent ocean views over pasture lands as well as views of the incredible West Maui Mountains are yours. This custom home offers you every amenity with top-of-the-line custom materials such as limestone floors, cherry wood cabinets, stairs and handrails. Enjoy 11 foot ceilings, a master suite with private balcony where morning coffee while viewing ocean waves can be enjoyed. The media room is set for great viewing and the equipment is included with the purchase of this dream home. The garage if oversized and the 1146 sf barn makes extra storage needs easily met. There is also a dark room, alarm system, sprinkler system. The property is fully fenced with security gate.
OPEN HOUSE SUNDAY 1-4 PM
Fantastic location in terrific neighborhood not far from the beaches and a few blocks to schools. Lots of options with this property. Two small homes, one is a two bedroom, two bath and the other a one bedroom one bath. Very private.
2611 Lioholo Place
Go by and see Clint Hansen, Realtor (S), 808.280.2764 Sunday or schedule a private showing today.
Friday, April 8, 2011
Heavenly in Haiku
OCEAN VIEW level ten (10) acre parcel of land offers the new owner a lot of possibilities. The main house is unique with wonderful separate guest suites. There is a cottage, barn, stable, tractor barn, and tons of storage. This is a short sale, being sold as is. Opportunity is knocking here. DON’T WAIT!
Contact Bob Hansen, BROKER, 808-283-9456 or
Donna D. Hansen, Realtor (S) 808-280-1650 for a showing today!
Disney Cruise Line To Bring Its First Cruise To Hawaii Next Year
Disney brings first cruise to Hawaii next year
By Erika Engle
Article from: Star-Advertiser
Disney Cruise Line will bring its first cruise to Hawaii next year.
The 964-foot Disney Wonder, packed with as many as 2,700 guests, will be in Hawaii in May 2012 for a 15-day cruise that will start in Los Angeles and stop in Hilo, Kahului, Honolulu and Nawiliwili Kauai, before heading back to California by way of Ensenada, Mexico.
The formerly Florida-ported ship will temporarily add to the Hawaii footprint of the House-of-Mouse, which plans to open Aulani, a Disney Resort & Spa at Ko Olina this summer.
By Erika Engle
Article from: Star-Advertiser
Disney Cruise Line will bring its first cruise to Hawaii next year.
The 964-foot Disney Wonder, packed with as many as 2,700 guests, will be in Hawaii in May 2012 for a 15-day cruise that will start in Los Angeles and stop in Hilo, Kahului, Honolulu and Nawiliwili Kauai, before heading back to California by way of Ensenada, Mexico.
The formerly Florida-ported ship will temporarily add to the Hawaii footprint of the House-of-Mouse, which plans to open Aulani, a Disney Resort & Spa at Ko Olina this summer.
Wednesday, April 6, 2011
Airline Seats To Hawaii Projected To Hold Steady This Quarter
Airline seats to Hawaii seen holding steady this quarter
The state forecasts just a 0.4 percent decline despite a big drop-off from Japan
By Dave Segal
Article from: Star-Advertiser
STAR-ADVERTISER
Avi Mannis, vice president of marketing for Hawaiian Airlines, says Japan is an important part of the company’s long-term strategy and that a decline in passengers following the March 11 earthquake and tsunami has not changed Hawaiian’s strategy. Hawaii should be able to weather the drop in airline traffic from Japan this quarter.
Added seats on flights from the West Coast, Australia and South Korea should make up for the reduction in Japanese flights since the March 11 earthquake and tsunami.
The Hawaii Tourism Authority said yesterday it is forecasting airlift to Hawaii to be down just 0.4 percent from the year-earlier quarter due to increases from the U.S. West (1.2 percent), Australia (43.5 percent) and South Korea (136.6 percent).
Those increases will offset a projected 10.5 percent second-quarter decrease in air seats from Japan as well as a 20.3 percent reduction in service from the U.S. East market, according to the tourism agency’s revised airline seat capacity outlook report.
“This is an indicator that interest in travel to Hawaii remains strong and mirrors our strategy of driving increased demand, and particularly from destinations such as the U.S. West, Korea and Australia,” HTA President and CEO Mike McCartney said.
HTA, which recently said it was implementing a $3 million tourism recovery plan, said passenger arrivals from Japan were likely down 18.3 percent in March.
Japan Air Lines and Delta Air Lines have temporarily reduced service between Japan and Hawaii, according to HTA.
Hawaiian Airlines is keeping its daily flight to Tokyo’s Haneda International Airport and proceeding with plans to begin daily service to Osaka in July. But Hawaiian said it is delaying putting its 294-seat Airbus A330-200 on its Haneda flights until summer and will continue to go with its 264-seat Boeing 767s.
Hawaiian said it expects bookings from Japan, which currently account for about 5 percent of its revenue, to be down just under 20 percentage points over the next month.
Avi Mannis, vice president of marketing for Hawaiian Airlines, told the Pacific Asia Travel Association Hawaii Chapter yesterday at the Hawaii Prince Hotel in Waikiki that the airline remains committed to Japan.
Mannis said Hawaiian’s service to Japan has gone uninterrupted since the earthquake except for one day when the airline had difficulty finding ground transportation for its flight crew.
“Our operations team did a fantastic, dedicated job of making sure we retained all of our service to Haneda and that we got people in and out,” Mannis said.
“Japan is an important part of our strategy for the long term,” he said. “We came into the Japanese market in Haneda, and now, with the Osaka announcement, we fully expected this was a market we were going to pursue. Nothing about the (Japan) events have fundamentally changed the strategy.”
Mannis said Hawaiian has been focused on Japan even more so over the last month and that the company has been participating in community fundraising events as well as implementing a payroll deduction program for employees who want to contribute to the Japan relief effort.
The airline is planning a “Lei Day” for Japan from 6 to 9 p.m. May 1 at Aloha Tower Marketplace in which there will be continuous live entertainment from well-known Hawaii performers and 25 food stations from the state’s leading chefs. Tickets are $100 per person for general admission, with other packages also available. More information is available online at LeiDayForJapan.org or by calling 585-0011.
Also yesterday, Blaine Miyasato, vice president of product development for Hawaiian, said the renovation of Hawaiian’s interisland terminal at Honolulu Airport is on schedule and will be completed by June 1. He said it will cut passengers’ check-in time to just 2-1⁄2 minutes from 10 minutes.
The state forecasts just a 0.4 percent decline despite a big drop-off from Japan
By Dave Segal
Article from: Star-Advertiser
STAR-ADVERTISER
Avi Mannis, vice president of marketing for Hawaiian Airlines, says Japan is an important part of the company’s long-term strategy and that a decline in passengers following the March 11 earthquake and tsunami has not changed Hawaiian’s strategy. Hawaii should be able to weather the drop in airline traffic from Japan this quarter.
Added seats on flights from the West Coast, Australia and South Korea should make up for the reduction in Japanese flights since the March 11 earthquake and tsunami.
The Hawaii Tourism Authority said yesterday it is forecasting airlift to Hawaii to be down just 0.4 percent from the year-earlier quarter due to increases from the U.S. West (1.2 percent), Australia (43.5 percent) and South Korea (136.6 percent).
Those increases will offset a projected 10.5 percent second-quarter decrease in air seats from Japan as well as a 20.3 percent reduction in service from the U.S. East market, according to the tourism agency’s revised airline seat capacity outlook report.
“This is an indicator that interest in travel to Hawaii remains strong and mirrors our strategy of driving increased demand, and particularly from destinations such as the U.S. West, Korea and Australia,” HTA President and CEO Mike McCartney said.
HTA, which recently said it was implementing a $3 million tourism recovery plan, said passenger arrivals from Japan were likely down 18.3 percent in March.
Japan Air Lines and Delta Air Lines have temporarily reduced service between Japan and Hawaii, according to HTA.
Hawaiian Airlines is keeping its daily flight to Tokyo’s Haneda International Airport and proceeding with plans to begin daily service to Osaka in July. But Hawaiian said it is delaying putting its 294-seat Airbus A330-200 on its Haneda flights until summer and will continue to go with its 264-seat Boeing 767s.
Hawaiian said it expects bookings from Japan, which currently account for about 5 percent of its revenue, to be down just under 20 percentage points over the next month.
Avi Mannis, vice president of marketing for Hawaiian Airlines, told the Pacific Asia Travel Association Hawaii Chapter yesterday at the Hawaii Prince Hotel in Waikiki that the airline remains committed to Japan.
Mannis said Hawaiian’s service to Japan has gone uninterrupted since the earthquake except for one day when the airline had difficulty finding ground transportation for its flight crew.
“Our operations team did a fantastic, dedicated job of making sure we retained all of our service to Haneda and that we got people in and out,” Mannis said.
“Japan is an important part of our strategy for the long term,” he said. “We came into the Japanese market in Haneda, and now, with the Osaka announcement, we fully expected this was a market we were going to pursue. Nothing about the (Japan) events have fundamentally changed the strategy.”
Mannis said Hawaiian has been focused on Japan even more so over the last month and that the company has been participating in community fundraising events as well as implementing a payroll deduction program for employees who want to contribute to the Japan relief effort.
The airline is planning a “Lei Day” for Japan from 6 to 9 p.m. May 1 at Aloha Tower Marketplace in which there will be continuous live entertainment from well-known Hawaii performers and 25 food stations from the state’s leading chefs. Tickets are $100 per person for general admission, with other packages also available. More information is available online at LeiDayForJapan.org or by calling 585-0011.
Also yesterday, Blaine Miyasato, vice president of product development for Hawaiian, said the renovation of Hawaiian’s interisland terminal at Honolulu Airport is on schedule and will be completed by June 1. He said it will cut passengers’ check-in time to just 2-1⁄2 minutes from 10 minutes.
Tuesday, April 5, 2011
iPhone Optimized Search
Our Maui Search now has an iPhone optimized version. This makes browsing properties with the iPhone a breeze:
http://www.mauirealestate.net/iPhoneSearch.php
http://www.mauirealestate.net/iPhoneSearch.php
April e-News
THE BUZZ
Compliments of Anne Diola of Old Republic Title & Escrow of Hawaii
April is a pivotal month in real estate. There’s just something about spring blossoms and long-awaited days of sunshine that spark home buying. Families start making plans to move over the summer months. Historically, from April through mid-July, the rush is on.
March marked a time of unseasonably bad weather and international tragedy, which affected real estate across the nation. Nationwide, existing home sales fell in February following three straight monthly increases.
Lawrence Yun, the chief economist for the National Association of Realtors, observes that “housing affordability is at record levels and the economy is improving. Still, home sales are being constrained by unnecessarily tight credit and appraisals that do not reflect rising prices. This tug and pull is causing a gradual but uneven recovery.”
All-cash sales were a record 33% in February and investors accounted for 19% of those sales. The balance of home sales was from first-time homebuyers or repeat buyers.
There are many great deals now. A prequalified buyer can reap substantial rewards. I work with some great mortgage consultants – let me know if you would like an introduction. Let the sun shine!
JUST ASK
Q: My house is stuck in the winter blues. How do I freshen it up for a spring sale?
A: The way you live in your home is not necessarily the best way to show your home when you’re trying to sell. If you are like most people, you enjoy your collections of things and your home probably doesn’t look like those on the HGTV tours. In order to sell for top dollar, you have to get rid of clutter.
Do you put off spring-cleaning? Does each item seem to call out to you and beg you to not put it away? If so, here is an easy method to reduce clutter.
Label four boxes:
Storage – Put things you don’t need for the next three months in here.
Put away – These are things you want to keep and enjoy regularly (for example, small picture frames of family), but need to be stored in a closet or garage temporarily to reduce clutter.
Give-Away/Sell – Who else will be happy to have this item? Be generous.
Trash – Damaged and broken items go here.
It sounds simple, but this really works. Move quickly. Your give-away box may end up in storage for a while. But the more you declutter, the more your home will appear more spacious and inviting to potential buyers.
FYI
This is the second in a series of articles on painting your home.
What is paint sheen and why does it matter? The sheen of the paint is the level of reflective light that can be seen when looking at the painted surface from an angle. The following are the various paint sheens available today:
Flat: The matte finish of a flat paint looks especially good on drywall and plaster. While it hides surface blemishes, flat paints are prone to show scuffs and grime and they are harder to clean. Ceilings are a good place to use a flat sheen.
Eggshell or Velvet: Eggshell is often used in place of a flat finish for walls since its surface is washable and more resistant to smudges. Some manufacturers now create a velvet finish, a lower-sheen cousin to eggshell that’s growing in popularity.
Satin: A satin finish is ideal for children’s rooms since they’re easy to clean up. It’s also good in bathrooms, kitchens and exterior applications. Excess moisture beads up in the surface instead of being absorbed into the paint.
Semi-gloss: This finish is good for woodwork and trim, when you want to set it off from a low-sheen wall. Some people like to use semi-gloss paint on kitchen walls since it’s durable and can be cleaned up easily. But keep in mind the higher the sheen, the more imperfections you’ll see.
Gloss: Gloss is best used when you want a dramatic shine on floors, woodwork or a dark accent wall. Smooth surfaces can appear like “plastic” when coated in a gloss finish, so use with caution.
Be sure to get samples of your paints before you purchase – though the types of sheen may have universal names, the actual sheen levels can vary from manufacturer to manufacturer.
Next month we’ll consider the uses of color and how to pick the best colors to suit your home, look, and lifestyle.
Contact Info:
Anne Diola
Real Estate Marketing Specialist
Old Republic Title & Escrow of Hawaii
33 Lono Ave, Ste 195
Kahului, HI 96732
W: (808) 281-8430
M: (808) 281-8430
adiola@ortc.com
Compliments of Anne Diola of Old Republic Title & Escrow of Hawaii
April is a pivotal month in real estate. There’s just something about spring blossoms and long-awaited days of sunshine that spark home buying. Families start making plans to move over the summer months. Historically, from April through mid-July, the rush is on.
March marked a time of unseasonably bad weather and international tragedy, which affected real estate across the nation. Nationwide, existing home sales fell in February following three straight monthly increases.
Lawrence Yun, the chief economist for the National Association of Realtors, observes that “housing affordability is at record levels and the economy is improving. Still, home sales are being constrained by unnecessarily tight credit and appraisals that do not reflect rising prices. This tug and pull is causing a gradual but uneven recovery.”
All-cash sales were a record 33% in February and investors accounted for 19% of those sales. The balance of home sales was from first-time homebuyers or repeat buyers.
There are many great deals now. A prequalified buyer can reap substantial rewards. I work with some great mortgage consultants – let me know if you would like an introduction. Let the sun shine!
JUST ASK
Q: My house is stuck in the winter blues. How do I freshen it up for a spring sale?
A: The way you live in your home is not necessarily the best way to show your home when you’re trying to sell. If you are like most people, you enjoy your collections of things and your home probably doesn’t look like those on the HGTV tours. In order to sell for top dollar, you have to get rid of clutter.
Do you put off spring-cleaning? Does each item seem to call out to you and beg you to not put it away? If so, here is an easy method to reduce clutter.
Label four boxes:
Storage – Put things you don’t need for the next three months in here.
Put away – These are things you want to keep and enjoy regularly (for example, small picture frames of family), but need to be stored in a closet or garage temporarily to reduce clutter.
Give-Away/Sell – Who else will be happy to have this item? Be generous.
Trash – Damaged and broken items go here.
It sounds simple, but this really works. Move quickly. Your give-away box may end up in storage for a while. But the more you declutter, the more your home will appear more spacious and inviting to potential buyers.
FYI
This is the second in a series of articles on painting your home.
What is paint sheen and why does it matter? The sheen of the paint is the level of reflective light that can be seen when looking at the painted surface from an angle. The following are the various paint sheens available today:
Flat: The matte finish of a flat paint looks especially good on drywall and plaster. While it hides surface blemishes, flat paints are prone to show scuffs and grime and they are harder to clean. Ceilings are a good place to use a flat sheen.
Eggshell or Velvet: Eggshell is often used in place of a flat finish for walls since its surface is washable and more resistant to smudges. Some manufacturers now create a velvet finish, a lower-sheen cousin to eggshell that’s growing in popularity.
Satin: A satin finish is ideal for children’s rooms since they’re easy to clean up. It’s also good in bathrooms, kitchens and exterior applications. Excess moisture beads up in the surface instead of being absorbed into the paint.
Semi-gloss: This finish is good for woodwork and trim, when you want to set it off from a low-sheen wall. Some people like to use semi-gloss paint on kitchen walls since it’s durable and can be cleaned up easily. But keep in mind the higher the sheen, the more imperfections you’ll see.
Gloss: Gloss is best used when you want a dramatic shine on floors, woodwork or a dark accent wall. Smooth surfaces can appear like “plastic” when coated in a gloss finish, so use with caution.
Be sure to get samples of your paints before you purchase – though the types of sheen may have universal names, the actual sheen levels can vary from manufacturer to manufacturer.
Next month we’ll consider the uses of color and how to pick the best colors to suit your home, look, and lifestyle.
Contact Info:
Anne Diola
Real Estate Marketing Specialist
Old Republic Title & Escrow of Hawaii
33 Lono Ave, Ste 195
Kahului, HI 96732
W: (808) 281-8430
M: (808) 281-8430
adiola@ortc.com
Friday, April 1, 2011
Gains By The Canadian Dollar ~ Good News For Canadian Buyers in Maui
Canadian dollar extends gain after U.S. jobs, firm oil prices
Article from: http://www.yahoo.ca/
TORONTO (Reuters) – The Canadian dollar rose to three-year highs against the U.S. currency on Friday morning after a strong U.S. jobs report underpinned hopes of an economic recovery.
The currency touched its highest level since November 2007 at C$0.9643 to the U.S. dollar, or $1.0370, shortly after data showed U.S. nonfarm payrolls notched a second straight month of solid gains in March. A fall in the jobless rate to a two-year low of 8.8 percent also marked a decisive shift in the labor market that should help the economic recovery.
Firm oil prices also supported the Canadian dollar.
At 9:20 a.m. (1320 GMT), the Canadian currency stood at C$0.9645 to the U.S. dollar, or $1.0368, up from Thursday’s close at C$0.9696 to the U.S. dollar, or $1.0314.
“The technicals still favor a higher Canada. I think it will be a slow grind higher based on the strong oil prices and prospects of global recovery, which will get more traction I think…because of the U.S. employment data,” said Michael O’Neill, managing director at Knightsbridge Foreign Exchange.
“It was stronger than expected, but the market was looking for stronger than expected. The risk is then you don’t get as big a move.”
He said it was too early to tell if the break through the quadruple bottom of C$0.9680 was a move with conviction, putting the daily range between C$0.9640 and C$0.9720.
O’Neill said the Canadian dollar would also draw solid support from the price of oil, which was above $107 a barrel, trading around its highest since September 2008 as fighting in Libya, an OPEC producer, helped underpin the strength.
Canadian bond prices slid across the curve, tracking U.S. Treasuries, after the higher-than-expected growth in U.S. payrolls and the fall in unemployment, bringing closer the day when U.S. interest rates may rise. Investors shed safe-haven assets for stocks and other riskier bets in response.
Canadian interest rate hike expectations also firmed slightly, with the odds of a September rate hike gaining following the U.S. data. Traders maintained bets that there is little chance the central bank will raise rates in April, according to a Reuters calculation of yields on overnight index swaps. Odds of a May hike were also seen as low.
The two-year bond fell 7 Canadian cents to yield 1.867 percent, while the 10-year bond lost 17 Canadian cents to yield 3.371 percent.
(Reporting by Ka Yan Ng; Editing by Leslie Adler)
Article from: http://www.yahoo.ca/
TORONTO (Reuters) – The Canadian dollar rose to three-year highs against the U.S. currency on Friday morning after a strong U.S. jobs report underpinned hopes of an economic recovery.
The currency touched its highest level since November 2007 at C$0.9643 to the U.S. dollar, or $1.0370, shortly after data showed U.S. nonfarm payrolls notched a second straight month of solid gains in March. A fall in the jobless rate to a two-year low of 8.8 percent also marked a decisive shift in the labor market that should help the economic recovery.
Firm oil prices also supported the Canadian dollar.
At 9:20 a.m. (1320 GMT), the Canadian currency stood at C$0.9645 to the U.S. dollar, or $1.0368, up from Thursday’s close at C$0.9696 to the U.S. dollar, or $1.0314.
“The technicals still favor a higher Canada. I think it will be a slow grind higher based on the strong oil prices and prospects of global recovery, which will get more traction I think…because of the U.S. employment data,” said Michael O’Neill, managing director at Knightsbridge Foreign Exchange.
“It was stronger than expected, but the market was looking for stronger than expected. The risk is then you don’t get as big a move.”
He said it was too early to tell if the break through the quadruple bottom of C$0.9680 was a move with conviction, putting the daily range between C$0.9640 and C$0.9720.
O’Neill said the Canadian dollar would also draw solid support from the price of oil, which was above $107 a barrel, trading around its highest since September 2008 as fighting in Libya, an OPEC producer, helped underpin the strength.
Canadian bond prices slid across the curve, tracking U.S. Treasuries, after the higher-than-expected growth in U.S. payrolls and the fall in unemployment, bringing closer the day when U.S. interest rates may rise. Investors shed safe-haven assets for stocks and other riskier bets in response.
Canadian interest rate hike expectations also firmed slightly, with the odds of a September rate hike gaining following the U.S. data. Traders maintained bets that there is little chance the central bank will raise rates in April, according to a Reuters calculation of yields on overnight index swaps. Odds of a May hike were also seen as low.
The two-year bond fell 7 Canadian cents to yield 1.867 percent, while the 10-year bond lost 17 Canadian cents to yield 3.371 percent.
(Reporting by Ka Yan Ng; Editing by Leslie Adler)
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