Hawaii Real Estate Blog

For Immediate Release:  November 3, 2006

Expected completion of the project is early 2009.

HONOLULU – Governor Linda Lingle has released an additional $3,026,000 to allow the second phase of the Fort Weaver Road widening project to move forward.

Governor Lingle previously released $9,023,000 in state funds for the second phase of the Fort Weaver Road widening project, but higher bids for the project due to rising construction costs led to the approval of additional funding.  With the latest funding, project contractor Hawaiian Dredging is scheduled to begin work by early next year.

The second phase of the widening project will add two more lanes to Fort Weaver Road from the vicinity of A`awa Drive to Geiger Road. The first phase of work widened Fort Weaver Road between Farrington Highway and A`awa Drive. When completed, Fort Weaver Road will be a six-lane highway, three lanes in each direction.

“The widening of Fort Weaver Road will greatly benefit the `Ewa community by relieving traffic congestion and providing safer travel for motorists, bicyclists and pedestrians,” said Governor Lingle. 

“This significant project is part of our department’s commitment to Keep Hawai`i on the Move,” said Department of Transportation Director Rod Haraga. “Along with our continued construction of the North-South Road, we are pushing forward with road projects to help `Ewa commuters.”

Other planned improvements include the construction of turning lanes, traffic signal modifications, and new highway lighting. 

The total project cost is $63,003,000 with $46,028,000 in federal funds and $4,926,000 in other funds.  Expected completion of the project is early 2009.

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Released: Tuesday, October 2, 2007 HONOLULU - Today, the Honolulu Board of REALTORS® released resale figures for the month of September. According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system, the statistics are: September 2007 Residential Resales Statistics for Oahu Single Family Home Resales Number of Sales This Month Compared To Median* Sales Price This Month Compared To September, 2007 255 $ 650,000 August, 2007 $ 650,000 no change September, 2006 359 dn 29.0% $ 620,000 up 4.8% Condominium Resales Number of Sales This Month Compared To Median* Sales Price This Month Compared To September, 2007 414 $335,000 August, 2007 $325,000 up 3.1% September, 2006 481 dn 13.9% $320,000 up 4.7%   *Median price means half the prices were above and half below the given price. During September, sales of 255 single-family homes and 414 condominiums were reported through the Board's MLS, decreases of 29.0 percent for single family homes and 14.9 percent for condominiums, compared to the same month last year. This brings total single-family home sales on Oahu to 2,877 for the first nine months of 2007, a decrease of 7.4 percent over the same time period one year ago. Total condominium sales through September were 4,344, a 13.9 percent decrease from last year. The year-to-date median prices paid for Oahu properties in the first nine months this year were $648,000 and $325,000, respectively, increases of 2.2 percent and 4.8 percent over the 2006 prices of $634,000 and $310,000. The total dollar sales volume generated in the housing market for the first nine months of the year was $3.953 billion, a decrease of 7.1 percent, or $303 million, compared to the $4.256 billion produced one year ago. "Overall median prices paid for single-family homes and condominiums have remained relatively constant despite the decline in units sold last month," said Berton Hamamoto, president of the Honolulu Board of REALTORS®. "Single-family home sales in September were the lowest since February 2006 when there were just 248 sales. Sales of 414 condominium units were the least since earlier this year, also in February, with sales of 402 units. We are seeing a slight increase in inventory in some neighborhoods so it is actually a good time for buyers to go out shopping." "The housing market on Oahu appears to be in a general slowdown, similar to the mainland markets, although we've not experienced the price declines," added Harvey Shapiro, research economist at the Board of REALTORS®. "Our market is most likely not suffering from a lack of consumer demand, but rather a shift of buyers to the new properties that are available on Oahu, which are not included in our statistics. This shift, however, is a short term event that will end after the new projects have sold." While the original sales of new properties are excluded from the Honolulu Board of REALTORS® databases, all subsequent resales are transactions are captured. ** Information courtesy of Honolulu Board of Realtors

Pacific Business News (Honolulu)

Mortgage companies and banks saw both volume and value of Hawaii mortgages drop last month.

September loan production fell to 4,310 loans, down 36 percent from the same period last year, while value dropped to $1.5 billion, down 45 percent, according to data released Tuesday by Title Guaranty of Hawaii.

The local mortgage market had been on track to surpass last year's performance, but fell off as subprime lending woes fanned out across the industry, drying up the secondary market.

Lenders wrote $26.1 billion in mortgages this year through September, a 3.1 percent drop from the same period last year, but volume fell to 54,529, down 12.4 percent.

The U.S. Justice Department's Antitrust Division today created a Web site addressing the competition in the real estate industry which includes tons of information for consumers to be educated about.

This web site also relates to the current anti-trust lawsuit between DOJ and NAR.

As an example graphs about commission trends and more.

Check out this web site by clicking on the first link above.

If you have any questions, please call me at 808-428-3659 or email me at fadihawaii@aol.com

WASHINGTON -- Popular legislation to ease the tax burden on struggling homeowners could hit an unexpected constituency: people with second homes.

The Ways and Means Committee, the House's tax-writing panel, approved a bill yesterday under which homeowners facing foreclosure won't get stuck with a tax bill if part of their debt is forgiven by lenders. Currently, forgiven debt is treated as income to the borrower and is subject to tax.

The committee decided to pay for the tax break, as required by congressional budget rules, by restricting homeowners' ability to avoid or reduce the taxes on the sale of second homes. The gain in revenue would be equal to roughly $2 billion over 10 years.

Some Republicans complained that the move would hurt the second-home market. Rep. Kevin Brady (R., Texas) said the change would punish those who had saved to purchase a second home. Rep. Sam Johnson (R., Texas) called it a "luxury tax on retirement homes."

There is little evidence that such opposition could threaten the underlying bill. The bill, which came in response to the subprime-lending crisis, has broad bipartisan support in both the House and Senate. The Senate hasn't said how it would pay for the bill.

Treasury tax counsel Michael Desmond said that while the Bush administration differed with the bill on several fronts, it supported the committee's vote. A White House proposal would shield homeowners from the debt-forgiveness tax for three years. The House bill makes that change permanent.

Industry groups, such as the Mortgage Bankers Association and the National Association of Realtors, weren't thrilled at the tighter tax rules for second homes but still supported the overall bill. "No one likes to be the pay-for," said Linda Goold, tax counsel at the Realtors' group. But, she added, "a tax benefit has been curtailed, but nothing has been eliminated."

Under current law, a person can exclude from taxes up to $250,000 in capital gains on the sale of a principal residence. Up to $500,000 of gains can be excluded for married couples. A second home can become a principal residence as long as the taxpayer has lived there for two of the previous five years.The bill approved yesterday would change those rules. Under it, the size of the tax break for a second home would be tied to the portion of time, out of all the years a house is owned, that it serves as a principal residence. Living in a property longer would result in a larger tax break on any gains when it is sold.

- - Sarah Lueck contributed to this article.

Email your comments to rjeditor@dowjones.com.

NEW YORK (MarketWatch) -- By now you've seen -- and probably tried -- the so-called compact fluorescent bulbs designed to replace the 100-year old incandescent technology. But how do you apply "Millionaire Zone" logic to the conversion decision?

You've seen the funny-shaped white spirals almost everywhere. Once exotically priced at $7 to $8 each, now your home-improvement store has them for under $3.50, sometimes less. So I thought it worth 15 minutes of your time to study the choice.

Someday you'll have to

Brazil and Venezuela have already done it. Australia recently mandated conversion to fluorescents by the year 2010. The European Union and Canada are studying it, and I'd bet on mandates pretty soon. Closer to home, California, New Jersey and a handful of other states have taken the lead.

And as you read this, the U.S. House and Senate are looking at versions of a bill, following the California lead, phasing out incandescent bulbs by 2012.

"Mandate" sounds kind of onerous. But when the numbers make sense -- you'll probably want to.

How much more efficient?

Some facts:

• More heat than light. Only 10% or less of energy consumed by incandescent bulbs actually becomes light -- the rest is heat (nice to hear as you deal with August air conditioning bills, right?).
• Compact fluorescents are more efficient. They turn 15% to 20% of energy used into light. Might not sound like much, but it's about a 70% improvement. What once took 60 watts now takes 15; what once took 100 watts now takes 23.
• Compact fluorescents last longer. A typical incandescent bulb lasts 1,000 hours. Run a light 5 hours a day and it will last 8 months. Compact fluorescents last 8,000 to 12,000 hours -- for years, effectively. Less time spent changing light bulbs too.

Running the numbers

So here's the equation using EPA facts and figures, including an average electricity cost of 10.1 cents per kilowatt-hour (kWh) for electricity. This is over the 12,000-hour lifetime of a 15-watt compact fluorescent bulb, which is equivalent to 12 1000-hour lifetime 60-watt incandescent bulbs:

Bulb with Electric rates @10.1c/kWh	Incandescent	Compact Fluorescent
Lifetime usage	720 kWh	180 kWh
Lifetime electricity cost	$72.72	$18.18
Replacement cost	$6 (50 cents each)	$3.50
Total cost	$78.72	$21.68

Now, I don't know how closely you read your electric bills, but with usage-based tiered pricing, my August electric bill averaged 20.4 cents per kWh. Rates vary across the country, but this really changes the equation:

Bulb with Electric rates @ 20.4c/kWh	Incandescent	Compact Fluorescent
Lifetime usage	720 kWh	180 kWh
Lifetime electricity cost	$146.80	$36.72
Replacement cost	$6 (50 cents each)	$3.50
Total cost	$152.80	$40.22

Now, at those electric rates, the numbers start to add up. Each compact fluorescent bulb, over its lifetime, saves $112.58. Using the assumption that the average U.S. home has 45 such lights, we're starting to talk real money.

Doing your own math

So following the above example, here's how you can calculate the savings yourself:

• Compare wattage on the bulb of your choice. For a 100 watt incandescent bulb, the equivalent compact fluorescent wattage is about 23.
• Find your electric rate. I know it's not easy on today's multipart electric bills, but somewhere there's a figure for total electricity cost and watts used. Divide cost by watts used to get your average per-kWh cost (20.4 cents in my case.)
• Calculate the cents-per-hour cost of the bulb. Easiest way is to divide the kWh usage of your bulb by 1,000, multiply the result by the cost per kWh (23/1000 multiplied by 20.4 = 0.47 cents per hour (compact fluorescent), 100/1000 multiplied by 20.4 = 2.04 cents per hour (incandescent).
• Project the hours per day, per month, per year bulb usage. Two hours per day is 730 hours per year. Multiply by the cents-per-kWh just calculated. The compact fluorescent costs $3.43 to operate for a year, while the incandescent costs $14.89.

You get the idea.

The bigger picture

You might like these numbers but still question the ability to really save. What about your halogen spotlights? The outdoor floods? Are there replacements for these? The answer: not yet, but they're working on it -- with specialized LED lights and modifications of existing technology.

And a recent Popular Mechanics study rates the quality of most compact fluorescents better than their equivalent incandescent, for the first time.

Meanwhile, the prospect of lower electricity cost -- not to mention the social benefits -- makes it worth 15 minutes of my time.

Email your comments to rjeditor@dowjones.com.

Gisele Bündchen, one of the highest-paid models, placed her Manhattan penthouse on the market this week for $10.9 million, more than three times what she paid for it five years ago.

Located in the West Village neighborhood, the five-room condominium of the Brazilian-born model measures about 1,750 square feet and has a landscaped roof deck and terrace totaling roughly 2,500 square feet. The two-bedroom, two-bath triplex has views of the Hudson River from each floor. The condo also has a wood-burning fireplace, windows facing in all four directions, a keyed-lock elevator and a security system. There's an outdoor hammock and hot tub. Ms. Bündchen bought the apartment in October 2002 for nearly $3 million, city records show, customized the bathrooms and added closet space and Brazilian-wood floors.

The triplex penthouse apartment, located in the West Village neighborhood, has a rooftop deck with a hot tub and views of the Hudson River.

Ms. Bündchen in recent years has appeared in ad campaigns for Louis Vuitton and Victoria's Secret, among other brands. In February, she sold her Los Angeles home for $3.98 million. Ms. Bündchen couldn't be reached for comment. Susan Gilder Hayes, of Corcoran, has the listing.

Nicolas Cage Relists Home in Bel-Air

Actor and serial home buyer Nicolas Cage has relisted his house in Los Angeles's Bel-Air section for $35 million. He listed the roughly 11,500-square-foot estate, done in an English country-manor style, at the same price last October and then pulled it off the market after five days.

Mr. Cage paid close to $7 million for the property in 1998 and renovated it substantially, spending more than $2 million, according to listing agent James Chalke of Nelson Shelton & Associates. The roughly one-acre property is just one of the "Ghost Rider" star's many multimillion-dollar homes. Earlier this summer Mr. Cage paid about $15.8 million for a nearly 25,000-square-foot manor house in Middletown, R.I. In recent years, the Oscar-winner has bought homes in San Francisco, Las Vegas, New Orleans and Bath, England. Mr. Cage's main residence is a waterfront house in Newport Beach, Calif., that he bought in 2005 for $25 million. He couldn't be reached for comment.

The Bel-Air mansion's former owners include singers Dean Martin and Tom Jones. The house has nine bedrooms, a movie theater and a big pool. In April, Mr. Cage sold a home in Las Vegas for $2.3 million, public records show, after buying it through a corporate trust two years ago for $2.25 million. He still owns a nearby Vegas mansion bought for $8.5 million last year, records show.

Ronald Lauder Sells Hamptons Acres

Cosmetics billionaire Ronald Lauder has sold one of his many Hamptons holdings: three acres in Sagaponack, N.Y., for about $3.74 million.

The land was originally part of a 20-acre plot. In 2005, the 63-year-old son of cosmetics mogul Estée Lauder sold 17 of those acres to the town of Southampton, which includes Sagaponack, for $5 million, to preserve the acreage from development. The subdivision of those three acres was finalized only recently, says Mary Wilson, Southampton's Community Preservation Program manager. That's why Mr. Lauder waited until late July to sell the land. The lot is near the Atlantic Ocean and Wainscott Pond, where Mr. Lauder owns multiple homes. The buyer is a limited-liability company.

In the 1990s, Mr. Lauder bought many acres surrounding his estate but has begun selling the land for preservation and other purposes. In 2006, he sold a 40-acre farm in Wainscott for $26 million. In 2005 and 2006, he sold the development rights to two adjacent Sagaponack parcels totaling 27 acres to Southampton for $5.2 million. The land is being farmed, Ms. Wilson says. Mr. Lauder plans no further property deals in the area, his spokeswoman says.

Email your comments to rjeditor@dowjones.com.