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.
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