Via the Star Bulletin (and thanks to Keahi Pelayo)

Department of Land and Natural Resources (DLNR) is hosting public meetings to change the State Land use rules. The revisions have some environmental organizations concerned. Others, like me, are concerned because whenever the government makes changes, they usually do so to someone else's harm.

The shoreline setback, a line past which no structures or coastal alterations are allowed, would be increased to 40 feet from the certified shoreline, plus 70 times the average annual coastal erosion rate.  The city and University of Hawaii is working on establishing that rate.

Hopefully the rules won't become more restrictive and difficult for owners to obey.

Here are sine proposed GROUND RULES The state is proposing a number of changes and additions to rules in its administration of conservation lands, last updated in 1994:

» The shoreline setback line would be established based on a distance from the certified shoreline of 40 feet, plus 70 times the average annual coastal erosion rate. Shoreline setbacks were not defined in the old rules.

» Some land management activities on conservation land would be allowed without permits. These would include routine weed control, clearing of understory, planting of rare plants, fence maintenance and clearing sand and silt from stream mouths, canals or drainage pipes.

» A number of fees would increase. These would be for board permit applications (from a maximum of $2,000 to $2,500), public hearing fees ($250 to $500), departmental permit applications ($50 to $250) and temporary variance applications ($100 to $250).

» Standard conditions for permits would include a rule prohibiting hampering religious practices of native Hawaiians on conservation land. The conditions would also prohibit artificial light from pointing toward the ocean. All exterior lighting must be shielded to "protect the night sky."

» Rules would specify that only people with property interest, residency on the land or anyone directly affected by a permit can appeal. Rules now state that "any person" can appeal to the department.

80% of Hawaii hotel rooms were full last week as tourism continued to grow stronger.

The room occupancy rate was 5.3 percent higher than a year ago.  Oahu had the highest occupancy rate at 87.8 percent.

Hotel room rates have rebounded slightly, increasing by 3 percent compared to last year to an average of $191.97 per night.  Oahu saw room rates climb an average of 4 percent to $161.53.

Good news for our local economy and for job seekers.  Strong tourism in Hawaii = strong Hawaii real estate market. 

Congress just passed H.R. 5981, giving FHA (Federal Housing Administration) the authority to adjust its annual mortgage insurance premium.   All FHA loan borrowers pay a monthly insurance premium on top of their mortgage payment, as a way to insure these low down payment loans.  Currently an FHA loan allows you to buy a house with 3.5% down.

A recent bulletin issued by David H. Stevens, Assistant Secretary for Housing/Federal Housing Commissioner, said that FHA would lower its upfront mortgage insurance premium from 2.25% down to 1% AND increase the annual premium from .55% by an additional .85-.90%.

So while the up front cost is low, this is a HUGE INCREASE in monthly payment and severely decreases a borrowers purchasing power.  Getting your FHA casenumber prior to the September 7 deadline will assure you the current fee structure.
 
Here's a comparison based on a $500,000 loan amount.

    * Upfront MI premium reduced from $11,250 to $5,000
    * Monthly MI jumps from $229.17 to $604.17
    * DHHL (Dept of Hawaiian Home Lands) programs remain the same.

 Good job Federal Gov't.  Way to hurt the little guys again. 

Recently it seems that there have been new farmer's markets popping up around Oahu every few months. Just a couple years ago, the only one I knew about was a small one in Hawaii Kai of just a few fruit stands. 

Kailua has one on Thursdays, Diamond Head has one at Kapiolani Comm College on Saturdays, and there is even a small one at Kalani high school now. I'm sure there are a dozen others around Oahu. 

Last week we visited the new and improved Hawaii Kai farmer's market that now meets at Kaiser high school on Saturday mornings. I was surprised to find that even though it's not huge, it has everything we wanted.  Fresh vegetables at majorly discounted prices, plenty of good fruit, made to order food from several great vendors, plus a bunch of other nice stands that had coffee, flowers, spices, dried fish, face painting for kids, and other goodies. 

 Here are some beautiful locally grown tomatoes for about $1.50 /lbs. 

And here we see some locally grown bananas. Nothing shipped in from South America is sold here. If you buy bananas at Foodland, chances are they've flown around the world first.

 And some fresh baked breads for your enjoyment - from a local bakery.  Free samples of course!

 My wife's favorite treat at any farmer's market - fresh made kettle corn! This stuff was delicious and kept my whole family occupied while we walked around. $5  for a BIG bag.  Delicious!

 And the best deal on vegetables in Hawaii.  $10 for a giant box of fresh veggies!  Bok choy, choy sum, daikon, green onion, spinach, beets, raddish, and lettuce.  This box would cost you at least $25 if you bought it at Foodland, and you couldn't buy it there, because they hardly sell any locally grown stuff! 

Hawaii Kai farmer's market - definitely worth a visit!

This is not a normal blog post.  This is a rant. 

 I just did a simple search of all available homes in Hawaii Kai under $950,000 with no other criteria.  There are only 24.  Most are in need of a total renovation.  This is insane.  If you are reading this and you own a home in Hawaii Kai, please SELL IT NOW!  

I have a buyer for you if it's under $1.1 million.  I'm serious.  PLEASE!  

I just need a nice condition home over 1600ft anywhere in Hawaii Kai.  Anyone!?

#10 – $18 Million Mountain Top Estate

Our first
mind boggling luxury Hawaii Home is this 2.35 acre mountaintop estate onOahuwith a total roofed area of over
17,000 sq ft. This is like owning your
own five star resort with 360 degree ocean and mountain views. Sweeping views ofDiamond Headand the ocean beyond, this property
sits at an elevation of approximately 1,350 feet above sea level. 

It's the
highest residentially-zoned point of land in southeasternOahu- with panoramic views toMolokai,Lanai, andMaui. On a clear day you can even see the snow-capped
summit ofMauna
Keaon theBigIslandfrom this room, which feels kind of like the bridge of a ship. Amenities include two swimming pools with waterfalls, water slide, spa
with fire pit, rock landscaping, and two fish ponds.

#9 – $13.8 Million Ocean front with
8200 square feet of living space

It looks
like a resort, but this architectural masterpiece by award-winning architect
Jeff Long can be your private residence if you've got the money. It has 5 bedrooms, 5 ½ baths, and half an
acre on the ocean for just under $14 million. 

You can see
whales jumping from your back yard, while swimming in your luxury pool and
enjoying the sunset views. Check out the
amazing ocean view from the living room. That'sDiamond
Headin
the distance! This property can host parties of up to 250 guests!

#8 – $11.8 Million estate on Lanikai
beach. The best beach inHawaii? 

Lanikai is
home to celebrities and professional athletes, and boasts one ofHawaii's best beaches. This half acre, 7 bedroom estate has some of
the best sandy beach in the entire State ofHawaii. 

Built in
2002 and recently reinvented by architect Peter Vincent in 2009, this property
has Ohia wood floors, a separate guest house, and best of all, this amazing
view of the Mokulua islands just offLanikaiBeach. Paddle your kayak right up to your back door and enjoy the white sand
beaches that Lanikai real estate offers. Check out this amazing white sand beach!

#7 – $15 MillionKailuaBeach Estate

This 2008Kailuaproperty has 8 bedrooms, 8 ½
bathrooms, 7600 square feet of living space, a separate guest house, 8 car
garage, and over 100 feet of sandy beach frontage.  There
is more granite and travertine in this house than in most stone quarries, since
every surface is fitted with the most luxurious materials available today. The 8 bathrooms have each have over $10,000
worth of travertine!

 The kitchen and great room pictured here feature a 25 foot ceiling with hand made beams, custom lighting, and this dining table made from Ohia wood, found nowhere else in the world except on the Big Island of Hawaii.

#6 – $9.6 Million North Shore Surf Estate

 Not many surfers have this kind of money, but
if you do, you can live beach front and enjoy famous nearby surf spots likeSunsetBeach, Velzyland, and just a few minutes
away, The Banzai Pipeline. Surrounded by sand & sea, this 4 year old property sits on
its own point, close to many of the world's most famous surf spots. Built to withstand time, you are greeted with soaring
25foot ceilings & a masterful marine-grade stainless steel staircase.This
4100 square foot home isn't huge, has five bedrooms-all w in suite baths &
oceanfront balconies. The great room overlooks the pool and cabana, and the private
access toThreeTablesWhiteSandBeach. 

#5 – $80 Million Kaiser Estate with
private boat harbor!

You've probably
heard the name Kaiser, as in the private health insurance giant, and this giant
5.5 acre ocean front property was once part of the historic Henry Kaiser Estate.Developed by the industrialist himself, this
property is located in the prestigious Portlock neighborhood ofEast Oahu. Commanding spectacular vistas ofMaunaluaBayandDiamond Head, the setting is both tropical and
grand and includes a private boat harbor! For $80 million, you get 2 massive homes and 2 tennis courts as part of this ocean front
retreat.

 #4 – How about aPrivateIslandfor $9.75 million?

That's
right, a private island inHawaii! Ok, so it's actually more like a peninsula, since there is technically a
road connecting it to the mainislandofOahu, but it's the only property on
this private multi acre peninsula slash island, complete with a beach, a pool, and a 360 degree
ocean view. For just under $10 million, you
can own this private piece of paradise and share it with absolutely nobody!

#3 – $24 Million Presidential Estate

This
beachfront estate has been visited by President George HW Bush, Jackie
Kennedy Onassis, and others with Presidential ties. With over an acre of beach frontage inDiamond Head, a pool and tennis court, and yes,
room for a helicopter to land in the back yard, this property is ultra
luxury! When it comes to Hawaii Luxury
Properties, the Presidents know best!

#2 - $13 Mil. Brand New Beachfront, People Watching for President Obama

Looking for
good neighbors? How about this $12.9
million brand newBaliresort style property next door to President Obama's winter home? With over 26,000 sqft of land onKailuabeach, this property is located on
one ofHawaii's most desirable stretches of white sand with over 100 feet
of sandy frontage.

 The house features
about 8000 square feet of covered space, including a wine room and a pool
cabana, which is situated close enough to the sand to watch for passing US
Presidents. Or you can relax in the 1500
square foot master bedroom with unrivaled ocean views.  Check out this amazing great room with ocean and island views!

#1 - President Obama's Winter White
House, a mere $7 million.

Speaking of
President Obama, his beautiful vacation rental sold for $6.9 million
earlier this month. We hope the new owners will still rent it the world leader, because thisluxurious Kailuabeach front property has hosted
President Obama for his past two Christmas vacations. These pictures (which I took) show the
amazing great room and kitchen, and the view out to the beach from the living
area. 

With about
28,000 square feet of land at the end of beautifulKailuabeach, this property has a great
view of the entire beach and Lanikai point in the distance.

There are 5
bedrooms and 5 ½ baths in this 6000 foot house, which also features and amazing
custom lava rock pool, spa, and pool cabana with an outdoor kitchen.Here's a
shot of the room where the President's two daughters sleep. I'm sure they sleep well with the gentle
sound of waves nearby, and of course the Secret Service standing guard!

This beautiful house at the top of Kamehame ridge (just below Na Pali Haweo) is now under contract, after just a few days on the market.  There wer 2 offers immediately, both well above the original asking price of $949k, so the seller decided to raise the price to $989k after just 2 days on market.

This house has a great ocean view from the master bedroom and from the massive grassy back yard.  With over 2300sqft and 4 bedrooms, it's got plenty of space, and room for a pool in the future. 

The kitchen has granite and new appliances, and the house has just recently been renovated with over $50k of upgrades. 

Just take a look at the amount of grass behind this house.  If you could turn it around, you would see the Ocean over looking Hawaii Kai! 

For $989k, this is a great house.  The fact that they had 2 offers over the original asking price shows you how strong the market in Hawaii Kai is right now.  It is definitely a rising market, thanks to low inventory, low interest rates, and prices that fell 20% in 2007 and 2008.  

Congrats to my clients on their new home!

According to an article in USA Today, a massive new study by Gallup-Healthways Well-Being Index of Americans' attitudes shows that Honolulu is America's Third Happiest City.

The Gallup-Healthways Index did interviews with more than 353,000 Americans during 2009, asking them to assess their jobs, finances, physical health, emotional state of mind and communities.

"Residents of large cities — those with a population of 1 million or more — generally report higher levels of well-being and more optimism about the future than those in small or medium-sized cities. In small cities, at 250,000 or less, people are more likely to feel safe walking alone at night and have enough money for housing."

Nine of the 10 cities that fare best on "life evaluation," assessments of life now and expectations in five years, boast a major university, a big military installation or a state Capitol — institutions that presumably provide some insulation from recession.

The top 10 cities include four in California, two in Utah and one each in Colorado and Hawaii.  I'm surprised we aren't #1!  Who doesn't want to live in Hawaii? 

This helps explain the high price of Hawaii real estate - you pay to be happier :) 

The June housing sales numbers are out, and they look good!

Oahu single-family home sales were up by 8.4 percent in June, from 263 to 285, and the median price was also up, to $575,000 from $570,000.

Oahu Condo sales saw the most dramatic jump up, 38 percent higher than last June, at 396 sales, although the median price was 3.2 percent lower, at $300,000.

Sales in June sold faster than last year, with the average home selling in just 32 days, down from 48!  Condos sold in 31 days, down from 47.

The trend is continuing - mainly led be very low inventory and low interest rates. I've seen some sellers get more than 10% above their asking price! 

Yesterday I showed this beautiful house in Queens gate that is listed for $925,000.  With 4 bedrooms, a pool, and a huge master bathroom, it had everything the buyers were looking for. 

We had a nice discussion about buying a house right now.  I thought there were some great insights, which leads me to pose a question:

If you aren't buying right now, WHAT EXACTLY ARE YOU WAITING FOR?

• Lower interest rates? 
• A housing bubble?
• A massive economic collapse? 
• 10% unemployment?
• Home prices to fall 20% ? 
• Inflation?  (prices of houses go up too, you know)  
• Global financial chaos?
• Dozens of bank failures?
• Government takeover of Fannie Mae?

ALL OF THAT ALREADY HAPPENED! 

We literally just endured the biggest financial collapse in our generation, and Hawaii real estate prices dropped about 15-20%. Is there some other worse event that could make prices drop more?  If so, what would that be?  The collapse of giant insurance companies?  Done. 

The US Government printing billions of dollars?  Done!  Financial chaos on a global level?  DONE!!! 

Some will argue that we aren't yet at the bottom of the housing market, and I would ask those people - What horrible event will occur that hasn't already???