Archive for March, 2008
Traffic, Traffic and more Traffic!
March 31st, 2008 categories: Buying Honolulu Real Estate, Reasons To Sell
This is the second installment in my series on why I am bullish on Honolulu real estate. The key word to consider is “TRAFFIC”.
Every mile one lives outside of Honolulu the greater the amount of traffic you will face getting into and around town (Honolulu). It seems our roads can be congested anytime of the day. Given the jobs, shopping and schooling in the core, I do not see a let up in traffic…ever! With 25,000 new homes projected to be built outside of Honolulu and a bulk of jobs being located in Honolulu and Waikiki, it is a safe bet that you will see more traffic.
You may have read about the proposed mass transit coming Read the rest of this entry »
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Vintage Honolulu Homes!
March 30th, 2008 categories: Buying Honolulu Real Estate, Reasons To Sell
Character, charm, handcraftsmanship and beauty these all describe the vintage homes in Honolulu. It seems there is love affair with these, sometimes quirky, cottages, Cape Cods and Victorian houses. Most were built between the 1920’s and 1950. Occasionally, I find one that was built even before the birth of the Territory of Hawaii. Drive to Aleo Street in Manoa and you will find a large Victorian with a classic round turret, that was first built in the early 1890’s. The original house had 6 bedrooms and no bathrooms (outhouses were the rage back then)! If you know where to look, you will find that there are many of these historic homes in the core of Honolulu.
Just remember how development occurred in Honolulu real estate. It started at the Honolulu Harbor then moved mauka and toward Hawaii Kai, which is to say Liliha, Nuuanu, Makiki, Moilili, Manoa, Kapahulu and Kaimuki. It is no surprise that these areas are full of examples of classic homes. Many are being torn down and replaced with “mcmansions”, some are enjoying loving restorations and others are hoping a renaissance remodeler will breath new life into them. It is interesting to note that many of the finest local architects at now mimicking their fit & finish, style and layout, however, you can expect to pay Read the rest of this entry »
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Views worth seeing!
March 22nd, 2008 categories: Reasons To Sell
Here are two views of Honolulu that most people don’t get a chance to see. Ironically, they are both looking at each other.
The first is from the Hau Terrace at Outrigger Canoe Club (a private club at the foot of Diamond Head) looking toward Waikiki. The second is from the House With Out A Key at the Halekulani Hotel. Just two reasons to be thankful for Honolulu!
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Commissions and why they don’t matter!
March 21st, 2008 categories: Reasons To Sell
Most full service Honolulu real estate brokerages charge a seller 6% of the sales price to sell a property. As most of us know, there are real estate brokers on Oahu that charge as little at $399 to put a listing in the Multiple Listing Service (MLS). Please be clear for $399 you are getting a “Limited Service” listing contract, which means this Seller is not being represented by this real estate broker. In some cases you can get additional services by paying additional fees or adding a commission. Essentially, you may be on your own.
The sale of real estate is normally the single largest financial transaction in a given tax year. On Oahu, using median values, the sale of a house is approximately $600,000 for houses and $335,000 for condominiums. Even with a 6% commission the Seller of a property has far more to lose Read the rest of this entry »
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Schools and why the matter to values in Honolulu!
March 19th, 2008 categories: Reasons To Sell
My children attend a private school, as do the children of almost anyone on Oahu that has the ability to pay for private education. Oahu’s public schools can rank in the lowest ranges in the Nation and our private schools are among the best. You maybe thinking, “Why is this real estate blogger talking about the schooling of children?” And I will answer your question with another question. Where are the majority of Oahu’s private schools, good public schools and higher education institutions? I am sure you have already guessed that they are in core Honolulu!
The fact that there are so many good schools in this area is another reason that 
I see long term values in Honolulu outperforming any other location on the island. As far as I know, none of the major or minor private schools (Punahou, Kamehameha or Iolani) have any plans to move their campuses from their current in town locations. This means that you have a significant number of people who are traveling to this core area every single school day. Many already live in the area and many others are fighting the traffic each morning and evening to get their kids to school. Many children start at private schools in kindergarten, meaning Mom and Dad can spend up to 13 years driving to and from school at least twice a day (wait until the children start playing sports and doing other after school activities). Add another child to the equation and you begin to understand that the driving can go on and on and on. With nearly 20 private schools, 4 Universities and community colleges, it becomes easy to see that this creates another reason for strong demand for real estate in core Honolulu.
The final educational motivational factor is that most of the good public schools on Oahu are located in core Honolulu too (Mae Mae Elementary, Noelani Elementary, Waialae Elementary, Wailupe Elementary, Niu Valley Elementary, Kalani High School and Kaiser High School)! The easiest way to avoid the $16,000 per year for private school is to move into one of these school districts.
If you can’t do that there is the very competitive district exemption available for the lucky few. Saving $16,000 per year is powerful motivation to move into an acceptable public school district!
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Happy Honolulu Real Estate News!
March 17th, 2008 categories: Reasons To Sell
This is a picture of something very few people see in the wild. This past weekend I was hiking on Maui, just above the famous Honolua Bay surf spot. The red Lehua was blooming everywhere and out in the middle of no where I found this unusual yellow Lehua flower. Enjoy it because you are not likely to see one in captivity.
The Bear Stearns debacle is another shroud on a gloomy national real estate market. As I have said earlier, there are many reasons to think the Honolulu real estate market is one which may not experience as significant a down turn as most other markets. Be sure to read this article that was online at Pacific Business News.
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Bullish On Honolulu Real Estate
March 13th, 2008 categories: Reasons To Sell
Amidst all of the dismay broadcast on the evening news concerning real estate and mortgages, I remain bullish about core Honolulu real estate values over the long term. There are many reasons to be a bull and my goal with these next few blogs is to completely thresh out those ideas. Today, I am going to discuss the supply of available land for building homes in Honolulu proper.
Simply put there is none! Unlike the continental US, Oahu is an island and when we run out of land, there is no further valley, plain or country side to which developers and home owners can go. More specifically, core Honolulu is nearly completely built out. Outside of some small remnant pieces of land here and there, there are no major tracks of land available for housing between Moanalua and Hawaii Kai (what I call core Honolulu). There are some available condominium development sites, but even those do not bring enough housing capacity to the market to significantly impact the demand for centrally located housing. Given all of the demand pressures on this central area (traffic, schools, jobs, resorts, entertainment, shopping, dining and more), it will forever be the most desirable part of the island. Therefore over the long run, no matter the short term bumps, one should expect this core area to appreciate. If you ask the question, should I have purchase property in Honolulu 10 years ago? Almost always the answer is a resounding yes. Let’s see, would I have made a pile of money by buying real estate in 1998, 1988, 1978 or 1968 AND holding it long term through today? Clearly I would have done very, very well! So Buyers…now is the time to buy! On a final note, be sure to check out the recently released State of Real Estate Report.
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