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 Hawaii mortgage rates tumble

Thursday, September 11, 2008 - 2:24 PM HAST -Pacific Business News (Honolulu)

Mortgage rates at Hawaii’s largest banks plunged this week following the federal government’s takeover of mortgage giants Fannie Mae and Freddie Mac.

The most dramatic drop was at Central Pacific HomeLoans, where the interest rate for a 30-year fixed-rate loan dropped by five-eighths of a point since last week to 5.375 percent, with 2 points, down from 6 percent, with 1.875 points.

The top three banks each cut their rates by a half point, with Bank of Hawaii and First Hawaiian Bank each offering 5.375 percent with 1.75 points, and American Savings Bank offering 5.5 percent with 1.625 points.

Nationally, the average rate for a 30-year fixed-rate mortgage was 5.93 percent with an average 0.7 points, down sharply from last week, when it averaged 6.35 percent, according to Freddie Mac’s weekly mortgage rate survey.

“Interest rates for 30-year fixed-rate mortgages are down almost 0.6 percentage points over the past four weeks, which will help to spur home purchases and loan refinancing in coming weeks,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This means that the monthly principal and interest payment on a new $200,000 loan is over $76 lower than a month ago.’

Nothaft also noted that the Mortgage Bankers Association reported that refinance applications are up 18 percent over the past three weeks through Sept. 5, “indicating that refinance activity has already begun to pick up.” 

 

Hawaii hotel occupancy falls 10 points to 59%

Friday, September 12, 2008 - 8:36 AM HAST  |  Modified: Friday, September 12, 2008 - 9:27 AM-Pacific Business News (Honolulu)

Hawaii statewide hotel room occupancy plummeted 10 percentage points to 58.8 percent for the week ending Sept. 6.

Room rates also fell to an average of $188 a night, down 0.9 percent as compared with the same week last year.

Occupancy and rates for the four major Hawaiian islands were as follows:

• Oahu occupancy fell 5.6 percentage points to 64.8 percent, while room rates slid 2.2 percent to $171;

• Maui occupancy plunged 17.2 percentage points to 52.8 percent, while room rates increased 7 percent to $244;

• Kauai occupancy dropped 9.9 percentage points to 64.8 percent, while room rates inched up 1.3 percent to $197; and

• Big Island occupancy declined 12.3 percentage points to 45 percent, while room rates fell 12.4 percent to $153.

U.S. hotel occupancy dipped 4.3 percentage points to 54.3 percent, while room rates went up 1.2 percent to $100.

The weekly Hawaii hotel industry snapshot is surveyed by Hospitality Advisors and Smith Travel Research.

 

 

Oahu home prices hold as sales fall

Monday, August 4, 2008, Pacific Business News (Honolulu)

Home prices on Oahu dipped only slightly in July as the number of sales continued to drop in the double digits.

The median price of a single family home on Oahu was $620,000, which was a 3 percent decline from the median price for June 2007 of $640,000, according to the Honolulu Board of Realtors.

The median price of a condominium last month was $329,900, just 1.5 percent down from July 2007, when the median price for a condo unit was $335,000.

The number of sales, however, fell more than 20 percent in both categories, and the days on market has increased as well, to 52 days for a house to sell and 42 days for a condo, noted Dana Chandler, the board's president.

"Buyers may be more cautious with the current state of the economy, but so far our markets still seem to be operating normally, and Honolulu continues to provide a stable environment for both buyers and sellers," she said.

There were just 251 homes sold in July, which was down 26 percent from July of last year, when 339 sold. It's also in line with sales so far this year, which also are running about 26 percent behind the first seven months of 2007.

The number of condos sold in July was 365 units, down more than 20 percent from the same month in 2007, when 457 units sold. Year to date, sales of condos are nearly 27 percent lower than the same period in 2007.

"The number of resales in the Oahu housing market may be starting to stabilize at these reduced levels," said Harvey Shapiro, the board's research economist. "The rate of decline has softened a bit and this could signal that we're nearing the bottom of this slower market, but we need to see a few more months of data to confirm this."

 

 

 

Honolulu loft apartments go on sale

Pacific Business News (Honolulu), Wednesday, June 25, 2008

The first 14 loft apartments in a new urban redevelopment project on Kapiolani Boulevard go on sale this weekend.

The 32-unit Vanguard Lofts includes a new six-story building along with the newly renovated former National Cash Register Building, which featured an addition designed by architect Vladimir Ossipoff.

The project has been under construction since last fall and the first units are expected to be ready in April 2009. JN Automotive is buying the ground-floor retail space, where it plans to relocate its exotic car dealership, which will include the newest nameplate in Hawaii, Bentley.

The loft apartments range from 835 square feet to 2,058 square feet, have one, two or three bedrooms and are priced from $755,000 to $2.1 million. There are 26 different floor plans among the 32 units, and 17 units have either walk-out decks or walk-up roof-top decks, which developer Chris Deuchar, president of U.S. Pacific Development LLC, likens to an "urban yard." A skydeck features a tension-edge pool, grill area and a bar.

Interiors were designed by John Staub from Philpotts & Associates and feature exposed concrete and ceiling heights between nine and 11 feet. Heyer & Associates is handling the sales for the project.

Deuchar has two other redevelopment projects in the works, including the 95-unit Skyline Honolulu project on the slopes of Punchbowl that he said will be similar to the lofts project.

Deuchar is also in the planning stages for The Cove Waikiki, a 119-unit project for the horseshoe-shaped Kaioo Drive off Hobron Lane, which will feature one-, two- and three-bedroom "dwellings" in three mid-rise buildings.

 

Hawaii mortgage rates dip to 5.5%

Thursday, May 22, 2008 Pacific Business News (Honolulu)

Central Pacific HomeLoans and First Hawaiian Bank dropped their rates for a 30-year, fixed-rate mortgage by a quarter-point this week as the national average for mortgages dipped.

First Hawaiian Bank offered the 30-year loan for 5.5 percent with 2 points, down from 5.75 percent with 1.875 points last week, according to data from the Honolulu Board of Realtors.

Central Pacific HomeLoans also offered a rate of 5.5 percent for the 30-year, fixed-rate loan, with 1.875 points, down from 5.75 percent and 1.75 points last week.

American Savings Bank and Bank of Hawaii each dropped an eighth of a point to 5.625 down from 5.75 percent last week. American Savings Bank charged 1.75 points on its rate, while Bank of Hawaii offered 1.625 points.

Nationally, the 30-year mortgage averaged 5.98 percent with an average 0.5 point, down from 6.01 percent last week, and down from 6.37 percent last year, according to mortgage giant Freddie Mac.

"Interest rates for fixed-rate mortgages fell slightly this week on news of both weaker industrial production in April and consumer sentiment falling in May to its lowest level since June 1980," said Frank Nothaft, Freddie Mac vice president and chief economist.

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Online land recording bill dies in Senate

Thursday, May 1, 2008 - 12:17 PM HASTPacific Business News (Honolulu)

The Hawaii Senate has killed a measure that would have established online filing of real estate records with the state Bureau of Conveyances.

House Bill 2302 had the support of the Hawaii Association of Realtors, Starwood Vacation Ownership, the Escrow Association of Hawaii, a unit of the Hawaii Government Employees Association, the Hawaii Land Title Association, the Commission to Promote Uniform Legislation, and influential House Democrats, who introduced the measure.

"Technology has advanced and electronic communications are increasingly replacing paper documents," wrote the bill's authors. "The law of real property will need to transition to accommodate this change. The efficiency of real estate markets makes this imminently necessary."

Laura Thielen, chairwoman of the Department of Land and Natural Resources, which oversees the Bureau of Conveyances, in a statement Thursday expressed disappointment that Senate leaders refused to consider the bill.

"Given their past impatience with the department and mandate to make changes it seems peculiar that the Senate is now requiring Hawaii residents to wait another year before they can access the bureau online," Thielen said.

Thielen said the DLNR will continue to develop an online system and make any improvements it can without waiting for legislative action.

No reason was given for HB 2302 being held without action in a Senate committee, but the DLNR had opposed a Senate amendment that would have required a feasibility study on the implementation and impact of an electronic filing system.

Hawaii is the only state with a single statewide recording office. In most states, real estate records are handled by county government.

The Bureau of Conveyances has recently been subject to legislative investigation over charges of mismanagement and inefficiency that has led to a backlog in recording land transactions.

 

Oahu real estate homes, condos sales skid in April 2008

Thursday, May 1, 2008 - 1:29 PM HASTPacific Business News (Honolulu)

Home and condominium sales on Oahu fell sharply in April but prices remained fairly steady.

Last month, 256 single-family homes were sold, a drop of 25 percent from the same month last year. The median sales price was $639,000, down 3.9 percent from April 2007 but up nearly 2 percent from March, the Honolulu Board of Realtors said Thursday.

The board said 384 Oahu condominiums were sold, 27 percent fewer than a year ago. The median sale price of $327,000 was up slightly from $325,000 a year ago and only 0.7 percent lower than in March.

Through the first four months of 2008, the board said the median price for single-family homes was $625,000, down 0.8 percent from the same period last year, and $329,000 for condos, up 2.2 percent from last year.

But the drop in sales volume is clearly being felt in commissions, fees and other financial activity related to real estate. The board said the total sales volume generated in the first four months from the resale of residential property was $1.31 billion, down 21 percent or $352 million from a year ago.

Hawaii foreclosure rate 45th in country

Pacific Business News (Honolulu) ; Tuesday, April 15, 2008 - 9:33 AM HAST

The number of foreclosures in Hawaii is up significantly compared with March 2007, but the number still is low in comparison with the rest of the country.

Hawaii had 120 foreclosure filings in March, down 16 percent from February, but up nearly 85 percent from March 2007.

Hawaii ranks 45th in the country for its foreclosure rate of one filing for every 4,167 households, according to the latest survey by California-based real estate research firm RealtyTrac.

Nevada had the highest foreclosure rate in the country for the 15th consecutive month. There was one filing for every 139 households.

California had the second highest foreclosure rate, with one in every 204 households receiving a filing in march. Florida ranked third, with one filing for every 282 households.

California had the highest number of foreclosures at 64,711.

Nationwide there were 234,685 foreclosure filings in March, up 5 percent over February and up 57 percent from March 2007, according to the report.

Hawaii mortgage rates rise

Pacific Business News (Honolulu) - Friday, April 4, 2008 - 12:23 PM HAST

Rates for 30-year mortgages at Hawaii's four largest banks rose this week, reflecting the rise in mortgage rates nationally.

First Hawaiian Bank and Central Pacific HomeLoans each offered a 30-year, fixed-rate loan for 5.625 percent with 2 points, according to data compiled by the Honolulu Board of Realtors.

Bank of Hawaii offered the same loan for 5.75 percent with 1.5 points. American Savings Bank also offered the 30-year loan for 5.75 percent but with 1.75 points.

Nationally, the average rate for a 30-year, fixed rate mortgage rose to 5.88 percent with average 0.5 point, according to mortgage giant Freddie Mac. That was up from and average 5.85 percent last week, but down from a year ago, when the 30-year fixed-rate loan averaged 6.17 percent.

"While prime, conforming rates still remain at historically low levels, long-term mortgage rates did drift slightly upwards this week on signs that the economy may have a little more strength than what financial markets forecasted," said Frank Nothaft, Freddie Mac vice president and chief economist.

Consumer spending in the fourth quarter of 2007 was revised upwards in the final estimate of gross domestic product, and personal income growth in February was the strongest since July 2007 while the manufacturing index unexpectedly rose last month, Nothaft said.

"Strong economic growth can lead to an up-tick in inflation fears, which tends to place upward pressure on mortgage rates; however, fears of economic recession, too, are putting pressure on the markets," he said.

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Second Homes: Hawaii Vacation Homeowner Squeeze Expands
by Broderick Perkins

There's more trouble in paradise for Hawaii's vacation homeowners. On the Hawaiian island of Oahu, the Honolulu City and County Council is considering legislation that would more than triple the property tax on homes used as vacation rentals. That could undermine the mom-and-pop vacation rental industry, which has long been an accommodations mainstay for the Aloha State's tourist industry. If approved, the new ordinance would reclassify some 1,000 homes, cottages and condos on the island of Oahu as if they were hotels or resorts. That would mean, for example, on a property valued at $600,000, property taxes would soar from about $2,000 a year to more than $7,500. This is the second blow to Hawaii's vacation home rental industry early in the New Year. Effective January 1, 2008, Maui County officials ordered hundreds of vacation home owners on the islands of Maui, Molokai and Lanai to shut down because they were operating without a permit. For years county officials allowed the practice so long as homeowners were in the permit applications process. It's not clear what Hawaii's tourist industry is thinking, given the increased demand from abroad for U.S. vacation homes both as investments and as travel accommodations. The weak U.S. dollar is expected to bring more foreign tourists to America this year. Also, foreigners with stronger foreign currencies, are snatching up American vacation homes. Hawaii has long been both a popular travel destination and a lure for vacation home investors. Honolulu Councilman Gary Okino, who proposed the property tax change in Bill 96, said vacation home owners get unnecessary tax break and in all fairness should pay the same rate as hotels. Vacation homeowners say the change would be unfair because vacation home properties don't rake in the same incomes as hotels and resorts and they offer fewer amenities. Placing additional financial burdens on vacation home rentals could also reduce the availability of accommodations for those who want to stay in a more homey atmosphere and interact with local residents. ___________________________________________________________________________________________

B&B vote delayed again until Jan. 30

By Mary Vorsino, Advertiser Urban Honolulu Writer

The city Planning Commission held off on voting on a proposal yesterday to lift the ban on bed-and-breakfast operations, after spending nearly three hours listening to arguments from both camps.

More than 125 people came out yesterday afternoon for the hearing, much of which was dedicated to allowing those who have not yet testified at meetings on two bed-and-breakfast bills a chance to speak.

The commission will take up the issue again Jan. 30. The bills will go before the City Council after the review by the city Planning Commission.

Attendees at the hearing were split between opponents of bed-and-breakfast operations, who say the businesses chip away at the sense of place in neighborhoods and cause a nuisance, and supporters, who argue that the businesses thrive around the world and offer tourists a unique stay.

Larry Bartley, executive director of Save O'ahu's Neighborhoods, worries that allowing bed-and-breakfast operations will mean an influx of the businesses in neighborhoods islandwide. He said the City Council members who proposed a lift on the ban are "out of touch."

Another opponent called the vacation rental industry "organized crime," alluding to illegal rental operations that do not have permits.

But Rachel Weyenberg, who has cleaned and managed vacation rentals in Waimanalo and Kailua, said visitors can be good neighbors — if there are good rules in place. "The issue here should be regulation," she said. "There is a place for B&Bs. Our economy here does thrive."

Bed-and-breakfast supporters also argue that regulating the industry — instead of banning it — would address the concerns of some neighbors, while allowing more bed-and-breakfasts to meet a growing demand.

One proposed amendment taken up yesterday calls for the repeal of the existing bed-and-breakfast law, allowing them in residential communities, while also setting up ways for neighbors to block the homes.

A second amendment also being considered by the Planning Commission requires transient vacation units, including bed-and-breakfasts, to include the permit number and addresses for units in advertisements. And it establishes fines for noncompliance.

If passed, the amendments would dramatically overhaul the city ordinance on short-term rentals passed in 1989, which banned opening new bed-and-breakfasts. Currently, there are fewer than 100 legal bed-and-breakfasts operating under nonconforming use permits.

Bed-and-breakfasts can take in renters for less than 30 days. About 1,000 owners have permits to rent an empty home for less than 30 days, although those operations are not strictly considered bed and breakfasts.

Many other vacation rentals are operating without permits.

Angie Larson, coordinator for Homes of Hospitality of Hawai'i, said many vacation rental and bed-and-breakfast operators want to work with their neighbors and the city to hammer out a solution amenable to all.

The organization represents about 400 vacation rental operators.

"We work to be self-regulating," she said, in a written news release, "putting together a process to take care of complaints, resolve issues and work with neighborhood boards and city government."

Karin Holma, chairwoman of the Planning Commission, said members are taking into account the tensions between opponents and supporters of the bills. "It's created really hard feelings," Holma said. "It's really a difficult issue. Both sides have very valid points."

The growing controversy over bed-and-breakfasts and transient vacation rentals came to a head two years ago, when residents took their concerns to neighborhood boards and the City Council.

The most vocal opponents to the businesses live in Kailua and Lanikai, where there are a host of vacation rentals. Residents of Manoa, Waimanalo, 'Ewa Beach and other communities have also voiced concerns, while some residents have supported lifting the ban.

Planning commission members did not voice their opinions on the amendments yesterday. Though members are expected to vote on the bed-and-breakfast bills on Jan. 30, the vote could be deferred again.

It's still unclear when the amendments will go before the City Council.

Some attendees were still not sure how the bills would work.

Suzanne Gilbert asked how the city Department of Planning and Permitting would regulate the industry, especially a provision that would limit one bed-and-breakfast home per 500 feet.

"Who's going to get that one coveted vacation rental in my neighborhood?" Gilbert asked.

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December 2007 statistics Oahu real estate

During December, sales of 240 single-family homes and 353 condominiums were reported through the Board's MLS, decreases of 30.6 percent for single family homes and 22.9 percent for condominiums, compared to the same month last year. This brings total single-family home sales on Oahu to 3,627 for 2007, a decrease of 10.2 percent over the same time period one year ago. Total condominium sales for all of 2007 were 5,499, a 13.8 percent decrease from last year. The full year median prices paid for Oahu properties were $643,500 and $325,000, respectively, increases of 2.1 percent and 4.8 percent over the 2006 prices of $630,000 and $310,000. The total dollar sales volume generated in the housing market for all of 2007 was $4.977 billion, a decrease of 8.9 percent, or $488 million, compared to the $5.465 billion produced one year ago.

There is a 0.6% decrease in Single Family Homes Median Sales Price from last year, while a 1.4% increase in Condominium Median Sales Price in December 2007 compared to the same month last year.

There is a 30.6% decrease in Single Family Homes Sales Volume from last year, and a 22.9% decrease in Condominium Sales Volume in December 2007 compared to the same month last year.

"Even though the number of sales have declined in the last few months of 2007, we are coming off of such record highs that we are still at the levels we attained during the last peak cycle between 1988 and 1991," said Berton Hamamoto, President of the Honolulu Board of REALTORS®. "The Honolulu real estate market has faired well this year in comparison to many Mainland cities. We showed modest gains of 2.1 percent and 4.8 percent for single-family and condo sale prices, as opposed to negative numbers for several U.S. cities."

"Housing resales during December were low but this was not unexpected," added Harvey Shapiro, Research Economist at the Board of REALTORS®. "The economy in Hawaii has been maintaining its strength although there are some indications of a coming slowdown."

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Oahu property values drop 1st time in 6 years

(Honolulu Advertiser) Saturday, December 15, 2007

The total assessed value of residential property on O'ahu has slightly decreased for the first time in six years, meaning many homeowners could see lower tax bills next year — unless tax rates are raised.

Honolulu officials began mailing out assessment notices yesterday, but it will be months before the City Council approves next year's tax rates.

If rates stay the same, city tax revenue will level off while some expenses are sure to increase. Raises for most public employees have been built into union contracts approved earlier, for example, and the cost of some benefits also will increase.

Some homeowners hope the city will cut spending elsewhere instead of raising taxes.

"Retirees and other people on fixed incomes have to live within their means, and the city should do the same," said Kailua retiree Bob Grantham.

He said he was surprised, and pleased, that the average assessed value of existing homes and apartments had decreased by 2.7 percent. But he wondered what that would mean for individual owners.

The assessed value of his house shot up 37 percent last year, and Grantham is paying higher taxes, even though the council slightly lowered the residential tax rate this year.

"It's a real concern for people on fixed incomes who have lived here 30 or 40 years or more," he said. "They have a real risk of losing their homes, and this is really not acceptable."

Gary Kurokawa, who heads the city's Real Property Assessment Division, cautioned that the 2.7 percent decrease reflects the average for all the island's existing residential properties, but does not include new construction or alterations. Assessments for specific properties could be higher or lower, he stressed.

About 7,000 owners appealed their assessments last year, and about half of those cases have been decided, Kurokawa said.

The total gross assessed value of all property on the island slid from $191.5 billion to $190.7 billion, or 0.4 percent.

Hotel and resort property values went down by an average of 4.9 percent.

Commercial and industrial properties rose in value by averages of 4 percent and 2 percent, respectively.

Officials said it's too soon to tell whether Mayor Mufi Hannemann will propose any changes to tax rates.

"For our budget planning purposes, the administration is assuming the current property tax rates," said city spokesman Bill Brennan. "Revenue projections reflect the flat valuations and current tax rates, so some budgetary belt-tightening will be required."

Council chairwoman Barbara Marshall said she hoped no tax rate increases would be necessary.

"We're going to definitely have to hold the line on expenses, and I'm sure all the city departments are aware of that," she said. "I'm going to certainly fight with everything that's in me to make sure rates don't go up."

The assessment valuations were set as of Oct. 1, and are based on sales of similar properties in each neighborhood through June 30.

New construction partially offset the decrease in residential property values. Sales prices continued to climb this year, but the market has generally softened after years of skyrocketing values.

The median sales price for single-family homes at the end of September was $648,000, compared with $634,000 for the full 2006 year, an increase of 2.2 percent, according to the Honolulu Board of Realtors.

The median sales price for condominiums as of September was $325,000, compared with $310,000 for the full 2006 year, an increase of 4.8 percent, according to the board.

The amount of an owner's tax bill is determined by multiplying the assessed value by the tax rate for that category of property. The council this year lowered tax rates for homes and apartments from $3.59 to $3.29 per $1,000 of assessed value.

The City Council must decide by June whether to change tax rates for the coming year.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com.

 

Oahu real estate market update for Nov. 2007

During November, sales of 245 single-family homes and 379 condominiums were reported through the Board's MLS, a decrease of 16.4 percent for single-family homes and 10.0 percent for condominiums, compared to the same month last year. This brings total single-family home sales on Oahu to 3,387 for the first eleven months of 2007, a decrease of 8.3 percent over the same time period one year ago. Total condominium sales through October were 5,146, a 13.1 percent decrease from last year. The year-to-date median prices paid for Oahu properties in the first eleven months this year were $645,000 and $325,000, respectively, increases of 2.4 percent and 4.8 percent over the 2006 prices of $630,000 and $310,000. The total dollar sales volume generated in the housing market for the first eleven months of the year was $4.650 billion, a decrease of 7.5 percent or $376 million, compared to the $5.026 billion produced one year ago.

There is a no change in Single Family Homes Median Sales Price from last year, while a 1.6% increase in Condominium Median Sales Price in November 2007 compared to the same month last year.

There is a 16.4% decrease in Single Family Homes Sales Volume from last year; and, a 10.0% decrease in Condominium Sales Volume in November 2007 compared to the same month last year.

"The number of units sold have been declining, and inventory went up a bit which leads us to believe that seller pricing is going to be key in getting a house sold in today's market" said Berton Hamamoto, President of the Honolulu Board of REALTORS®. "Buyers have more choices now and mortgage rates are still low, so it's actually a good time for buyers to purchase a home."

"Financing continues to be more favorable as fixed-rate mortgages slide to near 5.5 percent. Predictions are that there will be another quarter-percent drop in the federal funds rate by the Federal Reserve at their December 11 meeting and, if this occurs, could further reduce mortgage costs," added Harvey Shapiro, Research Economist at the Board of REALTORS®."

*Source: The Honolulu Board of REALTORS®

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Monday, December 3, 2007 - 1:25 PM HAST

Oahu home prices flat, sales down

Pacific Business News (Honolulu)

The median price of a single-family home on Oahu remained steady last month as sales fell more than 16 percent, according to figures released Monday by the Honolulu Board of Realtors.

The median price of a house in November was $610,000, the same price as in November 2006, but about 7 percent down from October's price of $655,000. It was also the lowest median price since January, when the median price was $600,000.

The 245 homes that sold last month reflected a 16.4 percent drop from the 293 homes that sold during the same month last year. Year-to-date, sales are running more than 8 percent behind 2006.

"The number of units sold have been declining, and inventory went up a bit which leads us to believe that seller pricing is going to be key in getting a house sold in today's market," said Berton Hamamoto, the board's president. "Buyers have more choices now and mortgage rates are still low, so it's actually a good time for buyers to purchase a home."

The number of condominiums sold fell 10 percent when compared year over year, with 379 units sold during November compared to 421 units sold during the same month last year. Sales during the first 11 months of the year are 13 percent lower than the same period in 2006.

The median price of a condo, however, was slightly up at $315,000, compared to $310,000 during November 2006.

"Financing continues to be more favorable as fixed-rate mortgages slide to near 5.5 percent," said Harvey Shapiro, the board's research economist. "Predictions are that there will be another quarter-percent drop in the federal funds rate by the Federal Reserve at their Dec. 11 meeting and, if this occurs, could further reduce mortgage costs."

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Thursday, November 29, 2007 - 10:18 AM HAST

Hawaii foreclosures up, but still few

Pacific Business News (Honolulu)

Foreclosure filings in Hawaii in October are up 102 percent from 2006, but the actual number of filings is still small, up from 65 filings to 131.

Hawaii ranks 43rd in the country for its foreclosure rate, according to the latest survey by California-based real estate research firm RealtyTrac.

Hawaii's foreclosure rate of one filing for every 3,749 households is down nearly 3 percent from the 135 filings in September.

Nevada has the highest rate of foreclosures, with 6,168 filings, or one for every 154 households, in October. Vermont has the lowest rate, with nine filings, which equates to one filing per every 34,149 households.

The national foreclosure rate was up 2 percent from September, and up 94 percent from October 2006. There were 224,451 filings at a rate of one for every 555 households nationwide

Friday, October 26, 2007

TripAdvisor: Kailua still hot

Pacific Business News (Honolulu)

Kailua still is buzzing as one of the top 10 hottest travel destinations in the U.S. for 2008, according to a travel trends survey released Thursday by TripAdvisor.

The Windward Oahu suburb known for its beaches was the only destination to repeat on the list from last year. However, it slipped in the rankings to No. 4 from No. 2 on TripAdvisor's TravelCast list.

TripAdvisor, a travel Web site that reviews vacation spots, hotels and attractions, surveyed more than 2,500 travelers based on their online search activity and customer reviews.

The top 10 U.S. destinations for 2008:

1. Sunny Isles Beach, Fla.

2. Kitty Hawk, N.C.

3. Seward, Alaska

4. Kailua, Hawaii

5. Blue Ridge, Ga.

6. Mount Pocono, Pa.

7. San Marcos, Texas

8. Paso Robles, Calif.

9. Rockport, Texas

10. Copper Mountain, Colo.

 

Wilson Homecare to build in Kailua

Pacific Business News (Honolulu) - Wednesday, October 10, 2007

Shelley Wilson, the owner of home health-care agency Wilson Homecare, plans to open her first adult residential care home in Kailua next year.

Wilson closed on the 14,000-square-foot property at 96 Kaneohe Bay Drive in late August. She said she hopes to break ground on the new 20-bed facility, called Wilson Care Home Kailua, in early 2008. She said she may spend up to $5 million on the project.

Wilson Homecare maintains administrative offices on Kapiolani Boulevard and primarily offers in-home health-care, skilled-nursing services and personal assistance to adults and children.

Costly Mistakes Buyers Make In a Down Housing Market

By Lauren Baier Kim

Here's a look at what's new in real-estate markets across the U.S. from around the Web. (Some links may require registration or subscriptions.)

Costly buyer mistakes in a down market

With plenty of homes on the market, prices falling and mortgage rates down, it appears to be a plum time for house hunters. But even in a buyer's market, buyers can make expensive goofs, writes Linda Stern of The Boston Globe.

Know your local market, Ms. Stern counsels. While there are bargains to be had, it's not smart to buy on the cheap if prices in your area are still falling. For instance, now might not be the time to make a purchase in Rust Belt cities like Cleveland and Rochester, N.Y., where more price corrections may be on the way. But buying a beach house now while buyers are looking to unload their properties before spring may be a good move, she says.

Buyers who fail to negotiate with their real-estate agent or look for deals are also making a mistake. Ms. Stern points to one brokerage in the Boston area that is giving buyers 75% of the commission it gets from home sellers. The catch: buyers must find the house on their own.

Sellers: Brace yourself for more bad news

For homeowners looking to sell their home, the forecast for the housing market is downright gloomy. Sellers should expect to see double-digit drops in home prices in most markets over the next three years, with an average decrease of 28%, according to a Fortune magazine report posted on CNNMoney.com. Declines are expected to be modest in "superstar cities," the Web site says: 14% in New York, 10% in San Francisco, 5% in Boston and 4% in Chicago. In places like Detroit, where home prices are relatively inexpensive, and in areas like Dallas, Indianapolis and Cleveland that were passed over by the housing boom, prices should actually rise, the report says.

Downturn slams agents and medium builders

There's been much in the news about the toll the housing slump has taken on large, national home builders and consumers. But a recent article by London-based BBC News takes a look at two groups not focused on as much in current coverage of the downturn -- smaller builders and real-estate agents. The article touches upon the story of one Cleveland  real-estate agent, who during the housing boom, earned six figures yearly. Now, her income is down 70% and she may have to sell the house she inherited from her mother to boost her family's income, BBC News says. The article also highlights the experience of one Washington, D.C.-area builder who is using his life savings so he and his business partner can stay afloat. The money is enough to stave off bankruptcy for a year, the article says.

Vulture funds target builders

Real-estate vulture funds may make a killing from builders' pain, according to TheStreet.com reporter Nicholas Yulico. Among such funds is Starwood Land Ventures of Starwood Capital of Greenwich, Conn., which is looking to purchase distressed housing developments and land sites from builders at "40% to 50% of their 2005 peak values" and flip them a year from now, or maybe later, Mr. Yulico says. In the next three years, values of such land should return to 70% or 80% of peak market value, he says. Starwood is mostly looking at the previously "overheated" housing markets of California, Arizona, Las Vegas and Florida for deals. he says.

Rate Lock Advisory - Thursday Nov. 15th Thursday's bond market has opened up slightly after this morning's inflation reading didn't reveal any surprises. The stock markets are showing small gains with the Dow up 7 points and the Nasdaq up 2 points. The bond market is currently up 4/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point. The Labor Department released October's Consumer Price Index (CPI) early this morning, saying that the overall index rose 0.3% while the core data rose 0.2%. These matched forecasts, indicating that inflationary pressures were at expected levels. The lack of a surprise helped ease some inflation fears, but generally speaking the data did not impact bond trading or mortgage rates much. The Labor Department also said the 339,000 new claims for unemployment benefits were filed last week. This was higher than expected, which can be considered good news for bonds. However, the weekly report usually has little influence eon bonds or mortgage rates because it tracks only a week's worth of claims. The last report of the week comes tomorrow morning when October's Industrial Production data be posted at 9:15 AM This report gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities. It is expected to reveal a 0.1% increase. Stronger than expected levels of output could mean that the manufacturing sector is gaining momentum. That would be considered bad news for the bond market and mortgage rates. If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Lock if my closing was taking place between 21 and 60 days... Lock if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers. ©Mortgage Commentary 2007

 

Mortgages down 36% in September

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.

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Bill Tightens Tax Rules For Second Homes

By John Godfrey
From The Wall Street Journal Online

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.      -- September 28, 2007

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Hawaii mortgage rates lower this week

Pacific Business News (Honolulu)

Friday, September 21, 2007

Hawaii's three largest banks offered 30-year fixed-rate mortgages below 6 percent this week.

First Hawaiian Bank, Bank of Hawaii and American Savings Bank all offered rates of 5.875, according to data released by the Honolulu Board of Realtors on Wednesday. Bank of Hawaii charged 2 points for the loans, while the other two banks charged 1.75 points.

Central Pacific HomeLoans, a subsidiary of Central Pacific Bank, came in at 5.75 percent for 30-year fixed mortgages with 2.25 points, while Finance Factors offered rates of 5.875 percent with 1.875 points.

Nationally, rates increased slightly to 6.31 percent with an average half-point charged for the week ending September 20, according to mortgage giant Freddie Mac.

"Mortgage rates were largely unchanged in the previous week, with long-term rates lingering at lower levels not seen since May," said Frank Nothaft, Freddie Mac vice president and chief economist. "The recent retreat in mortgage rates has brought in an increased volume of mortgage applications, according to the Mortgage Brokers Association, and pushed the share of applications for refinancing to the highest rate since April."