In November, the Honolulu Real Estate market felt the favorable influen ces of the low interest rates, low prices and first time home buyer tax credits.
249 single family homes sold vs 170 last year. POSITIVE INDICATOR
407 condos sold vs 201 last year.
POSITIVE INDICATOR
The median sales price for single family homes was lower than last year at $590,000 vs $594,500. POSITIVE INDICATOR
For condos, the median sales price was slightly higher than last year at $320,000 vs $316,200. STABLE INDICATOR
Sales have been brisk with days on market for single family homes from listing to escrow dropping to 42 days vs 57 last year. POSITIVE INDICATOR
Condo sales have been especially brisk with days on market at 32, less than half as much as last year at 68. EXTREMELY POSITIVE INDICATOR
The popular prices for single family homes has been anything between $200,000 to $300,000 and $400,000 to $700,000. For condos, those priced between $200,000 and $250,000 and $300,000 to $500,000 have had the most activity. PRICE INDICATOR FOR DEMAND
As a result, 5 of 17 single family neighborhoods and 9 of 19 condo neighborhoods are in stage 2 of the real estate cycle for November. ( Unit sales are above prior year and the median sales price is also above prior year) EXTREMELY POSITIVE INDICATOR
If your're interested in purchasing a new home or investment property, now is the ideal time with the current market conditions of low interest rates, low prices and tax credits for first time home buyers as well as home seller's looking to purchase.
In November, the median sales price was .8% below prior year while the year to date median sales price is 7% below prior year. This would indicate that prices are firming up vs prices earlier in the year.
The same holds true for condos. In November, the median sales price was 1.2% above prior year. The year to date price is 6.8% below prior year. This indicates condo prices are already moving up vs prior year.
Conditions are such that we're nearing the bottom of the market for single family homes and condos. With the low inventories of property available continuing to decline and demand remaining stable, upward pressure is beginning on list and sales prices.
Don't miss this opportunity to get a great buy by waiting for the market to hit bottom. You won't know when that is until AFTER it's occurred! It may have already occurred for condos!!
If you'd like some assistance to take advantage of these A UNIQUE market conditions, call Dwight Ellis at 808 351-1507.
Tuesday, December 8, 2009
Monday, November 30, 2009
Hawaii Real Estate Market Update
As we near the end of the year, it's always good to look at the positives and negagives of the market and what the future may hold.
Positives:
Low interest rates
Increased individual purchasing power
Extended first time homebuyer tax credit
Expanded tax credit program for home owners purchasing a home.
FHA extends higher loan amount ceilings.
Stock market is moving up
National GDP at 2.8% (The recession is over?)
Fed promises to keep interest rates artificially low to strengthen economoc growth.
Low prices for real estate
Low inflation
Housing market in the US is stabilizing
Negatives:
Mortgage loan requirements are more stringent, limiting Buyers who can qualify.
FHA rules for condo approvals are changing and in flux
GDP Growth is due to public sector Cash for Clunkers and First Time Homebuyer tax credits. These programs eventually end along with any jobs created.
With the Treasury printing and expanding the money supply, the value of the dollar is softening.
Low housing inventory means multiple offers and competition for well priced properties.
Hawaii unemployment will probably continue to rise with the upcoming increase in the unemployment fees for businesses to make the state unemployment fund liquid. Businesses will probably do less hiring and/or go out of business.
Summary:
Based on the positives and negatives noted above, indications are that 2010 will be close to the bottom of the real estate cycle for Hawaii.
As a result, this is an excellent time for Buyers who can qualify for a loan, to purchase a home.
It's also an excellent time for Sellers who need to sell, to sell quickly if priced well.
It's also an excellent time for sellers to move up by purchasing a better home in a better neighborhood, with the low prices currently available.
If you'd like to discuss your options as a Buyer or Seller, contact Dwight Ellis at dwighte@cbpacific.com or call me at 808 351- 1507.
Positives:
Low interest rates
Increased individual purchasing power
Extended first time homebuyer tax credit
Expanded tax credit program for home owners purchasing a home.
FHA extends higher loan amount ceilings.
Stock market is moving up
National GDP at 2.8% (The recession is over?)
Fed promises to keep interest rates artificially low to strengthen economoc growth.
Low prices for real estate
Low inflation
Housing market in the US is stabilizing
Negatives:
Mortgage loan requirements are more stringent, limiting Buyers who can qualify.
FHA rules for condo approvals are changing and in flux
GDP Growth is due to public sector Cash for Clunkers and First Time Homebuyer tax credits. These programs eventually end along with any jobs created.
With the Treasury printing and expanding the money supply, the value of the dollar is softening.
Low housing inventory means multiple offers and competition for well priced properties.
Hawaii unemployment will probably continue to rise with the upcoming increase in the unemployment fees for businesses to make the state unemployment fund liquid. Businesses will probably do less hiring and/or go out of business.
Summary:
Based on the positives and negatives noted above, indications are that 2010 will be close to the bottom of the real estate cycle for Hawaii.
As a result, this is an excellent time for Buyers who can qualify for a loan, to purchase a home.
It's also an excellent time for Sellers who need to sell, to sell quickly if priced well.
It's also an excellent time for sellers to move up by purchasing a better home in a better neighborhood, with the low prices currently available.
If you'd like to discuss your options as a Buyer or Seller, contact Dwight Ellis at dwighte@cbpacific.com or call me at 808 351- 1507.
Wednesday, November 25, 2009
Now is a GREAT time to buy that first home!!
If you’ve done your homework, and saved your money, NOW is a great time to buy your first home. Prices are still dropping—a little. But inventory of single family homes and condos is also dropping (so there might be fewer properties in your price range than there were—see the list below).
Interest rates are still low. That means you can still get a good deal in the real estate market. With the interest rates low, your buying power is higher than if the interest rates were high. For example, buying a $750,000 home at 4.5% would cost $650 a month LESS than buying it at 7%!!! That’s a huge savings!
In addition, the first time home buyers’ credit has been extended. You must be in escrow by April 30, and close by June 30, 2010, in order to take advantage of this credit…. Also, the property has to be less than $800,000.
Inventory of homes (both condos and single family homes) is dropping, so soon it may be a sellers’ market. Lots of people will be out there, just like you, looking for their next home, wanting to buy. Now is such a good time to buy.
Here is the breakdown of single family homes available on Oahu (as of today) in various price ranges:
79 homes: $100,000 to $350,000
141 homes: $351,000 to $450,000
262 homes: $450,001 to $600,000
203 homes: $600,001 to $750,000
100 homes: $750,001 to $800,000
59 homes: $800,001 to $950,000
59 homes: $950,001 to $1,100,000
374 homes: over $1,100,001
Here is the breakdown of condos available on Oahu (as of today) in various price ranges (this list may include leasehold properties and studios):
94 condos: to $100,000
396 condos: $100,001 to $200,000
456 condos: $200,001 to $300,000
314 condos: $300,001 to $400,000
173 condos: $400,001 to $500,000
98 condos: $500,001 to $600,000
90 condos: $600,001 to $700,000
56 condos: $700,001 to $800,000
32 condos: $800,001 to $900,000
25 condos: $900,001 to $1,000,000
149 condos: over $1,000,001
There may be a lot to choose from in your price range, or there may be only a few properties.
Call your real estate agent now. If you don’t have an agent you are already working with, please call me… Tiare Dutcher at 808-753-5327. I would be happy to help you find your FIRST home.
Interest rates are still low. That means you can still get a good deal in the real estate market. With the interest rates low, your buying power is higher than if the interest rates were high. For example, buying a $750,000 home at 4.5% would cost $650 a month LESS than buying it at 7%!!! That’s a huge savings!
In addition, the first time home buyers’ credit has been extended. You must be in escrow by April 30, and close by June 30, 2010, in order to take advantage of this credit…. Also, the property has to be less than $800,000.
Inventory of homes (both condos and single family homes) is dropping, so soon it may be a sellers’ market. Lots of people will be out there, just like you, looking for their next home, wanting to buy. Now is such a good time to buy.
Here is the breakdown of single family homes available on Oahu (as of today) in various price ranges:
79 homes: $100,000 to $350,000
141 homes: $351,000 to $450,000
262 homes: $450,001 to $600,000
203 homes: $600,001 to $750,000
100 homes: $750,001 to $800,000
59 homes: $800,001 to $950,000
59 homes: $950,001 to $1,100,000
374 homes: over $1,100,001
Here is the breakdown of condos available on Oahu (as of today) in various price ranges (this list may include leasehold properties and studios):
94 condos: to $100,000
396 condos: $100,001 to $200,000
456 condos: $200,001 to $300,000
314 condos: $300,001 to $400,000
173 condos: $400,001 to $500,000
98 condos: $500,001 to $600,000
90 condos: $600,001 to $700,000
56 condos: $700,001 to $800,000
32 condos: $800,001 to $900,000
25 condos: $900,001 to $1,000,000
149 condos: over $1,000,001
There may be a lot to choose from in your price range, or there may be only a few properties.
Call your real estate agent now. If you don’t have an agent you are already working with, please call me… Tiare Dutcher at 808-753-5327. I would be happy to help you find your FIRST home.
Tuesday, November 24, 2009
Finding a Best Buy
As I continue to mention there are three popular approaches in determining a best buy: 1.) for investors, rental property that yields a positive cash flow with minimal down payment. 2.) Properties where the asking price is substantially below like kind homes that have sold within the last six months. 3.) Properties where the quality or condition is above average, in a highly sought after area, in a neighborhood where the inventory for sale is relatively nonexistent and are selling at or below market value.
Of late the focus has been on the Real Estate Agent and his or her ability and understanding of the market and how best they can help their client exploit certain variation on these three points. In this regard let’s take point (2) Properties where the asking price is substantially below like kind homes that have sold within the last six months. Most recently I came across a listing in Diamond Head, Black Point neighborhood. The property was offered at $1,395,000. The land was assed at $2,179,000 and the structure was $203,900. Black Point is a very desirable area. When looking at the comps this 1,395,000 did meet the requirement of selling substantially below like kind homes that have sold within the last six months. Even if the buyer was considering tearing down the structure and buy only for the land. The assessment still gives a strong indication this is a good buy.
If you would like any further details on this property or other potential best buys please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how this property or any other can be turned into a great opportunity.
Of late the focus has been on the Real Estate Agent and his or her ability and understanding of the market and how best they can help their client exploit certain variation on these three points. In this regard let’s take point (2) Properties where the asking price is substantially below like kind homes that have sold within the last six months. Most recently I came across a listing in Diamond Head, Black Point neighborhood. The property was offered at $1,395,000. The land was assed at $2,179,000 and the structure was $203,900. Black Point is a very desirable area. When looking at the comps this 1,395,000 did meet the requirement of selling substantially below like kind homes that have sold within the last six months. Even if the buyer was considering tearing down the structure and buy only for the land. The assessment still gives a strong indication this is a good buy.
If you would like any further details on this property or other potential best buys please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how this property or any other can be turned into a great opportunity.
Monday, November 23, 2009
Here's an update on the financial market for the week ending 11/20/09, courtesy of Alan Zukerkorn of Hawaii Mortgage Co, Inc.
Have a Happy Thanksgiving!
Mortgage Market News for the week ending November 20, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
Inflation Low
Retail Sales Rose
Housing Starts Down
Manufacturing Mixed
Events Next Week:
Mon 11/23 Existing Sales 2-yr Auction
Tues 11/24 GDP FOMC Minutes 5-yr Auction
Wed 11/25 Durable Orders Core PCE 7-yr Auction
Bernanke Addresses Falling Dollar
A highly anticipated speech on Monday by Fed Chief Bernanke on the economic outlook revealed no change in the Fed's stance on short-term monetary policy. There were also few surprises in the economic data released during the week. The monthly inflation readings continued to show that inflation is not a cause for concern in the short-term. As a result, mortgage rates barely moved during the week, remaining at historically low levels.
The decline in the value of the dollar has received a great deal of attention lately. While Fed officials rarely discuss the value of the dollar, Bernanke assured investors that the Fed is closely watching exchange rates. However, he then reminded investors that the Fed's dual mandate is to promote full employment and to keep prices stable. According to Bernanke, the value of the dollar is just one of many factors affecting inflation, and the Fed is not concerned by the movement in the dollar so far. With a fragile economy and high unemployment rate, he suggested that the Fed intends to keep the fed funds rate at very low levels. Tightening monetary policy to strengthen the dollar would hurt the economic recovery and slow job creation. After the speech, the value of the dollar fell to the lowest level since August 2008.
If foreign investors expect the value of the dollar to continue to fall, it may pose a risk for mortgage rates in the future. Foreign investors historically have been major buyers of mortgage-backed securities (MBS). When the dollar falls, the value of US assets to foreign investors in their own currency declines, making US investments less rewarding. With the Fed scaling back its MBS purchases over the next few months, a drop in foreign demand would further pressure yields higher to fill the void left by the Fed.
Property Issues – Condos
Last week I addressed property issues primarily for Single Family Homes. This week we look at how issues with condos, could decide if you get financing or not.
Leasehold. There are still lots of rumors out there that financing is no longer available for leasehold properties. That is not true. The basic rules still apply. The lease has to extend 5 years past the length of the loan applied for. If you want a 30-Year Fixed loan, there has to be a minimum of 35 years remaining on the lease.
Owner-Occupancy. This is where the major changes to condo financing have taken place in the past couple of years. The simple guideline on occupancy is if the owner-occupancy is below 50%, you will not get a Fannie or Freddie loan. There are still portfolio products available for these scenarios. If your equity position is less than 20% and mortgage insurance is required, the owner-occupancy jumps up to 70%. Keep in mind that the formula used by most property management companies to determine owner-occupancy as disclosed on the condominium disclosure form is flawed. The rule for owner-occupancy is owner-occupants AND 2nd homes. Most property management companies determine owner-occupancy by tabulating the number of units in which the maintenance fee statements are sent to an address other than the subject property. They will consider all of these units investor properties. The best way to determine the number of investor properties is with the Resident Manager. They know exactly how many renters live in the complex.
Insurance. It is now a Fannie Mae requirement that condo owners carry contents insurance (an H-06 policy) in addition to the coverage carried by the association. If there were a fire, the association’s insurance will not cover appliances, cabinets, etc. This coverage is a good idea regardless of any lender’s requirements.
Also Notable:
October Core CPI inflation was a tame 1.7% higher than one year ago
October Housing Starts dropped 11% from September
The Treasury will auction a record $118 billion next week
The Fed purchased $16 billion in agency MBS during the week ending 11/18
Average 30 yr fixed rate:
Last week:
-0.02%
This week:
-0.02%
Stocks (weekly):
Dow:
10,300
-25
NASDAQ:
2,140
-20
Week Ahead
A wide range of economic data will be released during the holiday-shortened week ahead. Existing Home Sales will come out on Monday. GDP, Consumer Confidence, and the FOMC Minutes from the November 4th Fed meeting will be released on Tuesday. Durable Orders, Personal Income, Core PCE inflation, New Home Sales, and Consumer Sentiment will all be packed in on Wednesday. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday. Mortgage markets will be closed on Thursday for Thanksgiving. Expect volatility on Friday, as most traders will be gone, making for a 4-day weekend.
Have a Happy Thanksgiving!
Mortgage Market News for the week ending November 20, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
Inflation Low
Retail Sales Rose
Housing Starts Down
Manufacturing Mixed
Events Next Week:
Mon 11/23 Existing Sales 2-yr Auction
Tues 11/24 GDP FOMC Minutes 5-yr Auction
Wed 11/25 Durable Orders Core PCE 7-yr Auction
Bernanke Addresses Falling Dollar
A highly anticipated speech on Monday by Fed Chief Bernanke on the economic outlook revealed no change in the Fed's stance on short-term monetary policy. There were also few surprises in the economic data released during the week. The monthly inflation readings continued to show that inflation is not a cause for concern in the short-term. As a result, mortgage rates barely moved during the week, remaining at historically low levels.
The decline in the value of the dollar has received a great deal of attention lately. While Fed officials rarely discuss the value of the dollar, Bernanke assured investors that the Fed is closely watching exchange rates. However, he then reminded investors that the Fed's dual mandate is to promote full employment and to keep prices stable. According to Bernanke, the value of the dollar is just one of many factors affecting inflation, and the Fed is not concerned by the movement in the dollar so far. With a fragile economy and high unemployment rate, he suggested that the Fed intends to keep the fed funds rate at very low levels. Tightening monetary policy to strengthen the dollar would hurt the economic recovery and slow job creation. After the speech, the value of the dollar fell to the lowest level since August 2008.
If foreign investors expect the value of the dollar to continue to fall, it may pose a risk for mortgage rates in the future. Foreign investors historically have been major buyers of mortgage-backed securities (MBS). When the dollar falls, the value of US assets to foreign investors in their own currency declines, making US investments less rewarding. With the Fed scaling back its MBS purchases over the next few months, a drop in foreign demand would further pressure yields higher to fill the void left by the Fed.
Property Issues – Condos
Last week I addressed property issues primarily for Single Family Homes. This week we look at how issues with condos, could decide if you get financing or not.
Leasehold. There are still lots of rumors out there that financing is no longer available for leasehold properties. That is not true. The basic rules still apply. The lease has to extend 5 years past the length of the loan applied for. If you want a 30-Year Fixed loan, there has to be a minimum of 35 years remaining on the lease.
Owner-Occupancy. This is where the major changes to condo financing have taken place in the past couple of years. The simple guideline on occupancy is if the owner-occupancy is below 50%, you will not get a Fannie or Freddie loan. There are still portfolio products available for these scenarios. If your equity position is less than 20% and mortgage insurance is required, the owner-occupancy jumps up to 70%. Keep in mind that the formula used by most property management companies to determine owner-occupancy as disclosed on the condominium disclosure form is flawed. The rule for owner-occupancy is owner-occupants AND 2nd homes. Most property management companies determine owner-occupancy by tabulating the number of units in which the maintenance fee statements are sent to an address other than the subject property. They will consider all of these units investor properties. The best way to determine the number of investor properties is with the Resident Manager. They know exactly how many renters live in the complex.
Insurance. It is now a Fannie Mae requirement that condo owners carry contents insurance (an H-06 policy) in addition to the coverage carried by the association. If there were a fire, the association’s insurance will not cover appliances, cabinets, etc. This coverage is a good idea regardless of any lender’s requirements.
Also Notable:
October Core CPI inflation was a tame 1.7% higher than one year ago
October Housing Starts dropped 11% from September
The Treasury will auction a record $118 billion next week
The Fed purchased $16 billion in agency MBS during the week ending 11/18
Average 30 yr fixed rate:
Last week:
-0.02%
This week:
-0.02%
Stocks (weekly):
Dow:
10,300
-25
NASDAQ:
2,140
-20
Week Ahead
A wide range of economic data will be released during the holiday-shortened week ahead. Existing Home Sales will come out on Monday. GDP, Consumer Confidence, and the FOMC Minutes from the November 4th Fed meeting will be released on Tuesday. Durable Orders, Personal Income, Core PCE inflation, New Home Sales, and Consumer Sentiment will all be packed in on Wednesday. In addition, there will be Treasury auctions on Monday, Tuesday, and Wednesday. Mortgage markets will be closed on Thursday for Thanksgiving. Expect volatility on Friday, as most traders will be gone, making for a 4-day weekend.
Friday, November 20, 2009
Get Ready for YOUR New Home!!!
First Time Home Buyers: There are a few things that are extremely important to remember in buying your first home, once you are in escrow.
There will be a timeline that is generated, usually by the escrow company. These are deadlines that have to be met in order to keep to the purchase contract. Make sure your real estate agent is meeting the deadlines. Usually, the agent is very aware of the deadlines, but it’s always good for you to be aware too.
One of the items on the timeline is the home inspection. It is important to have a professional do this, someone who is knowledgeable about building structure, electrical wiring, plumbing, roofs, and all the many things that make up a house or condo property. It is important for YOU to be at that home inspection, so that you can ask the inspector questions about what you are seeing…
Another important date is the final walk through. This is usually done about five days before the closing of the property, just before the property becomes YOURS. If repairs had to be done, were they finished? Was there personal property that went with the home? Is it still there? Were there items that were supposed to have been removed from the property? Are they gone? If you are satisfied with the state of the property, you can be assured that it will be just that way when you take possession in a few days. If you are not satisfied, you will need to discuss with your agent what things still need to be done…
Buying a home for the first time is a huge undertaking, and can be scary. A good real estate agent can help you through the process, answering questions and helping to alleviate your fears. If you need a good agent, call me, and I can help you. Tiare Dutcher 808-753-5327.
There will be a timeline that is generated, usually by the escrow company. These are deadlines that have to be met in order to keep to the purchase contract. Make sure your real estate agent is meeting the deadlines. Usually, the agent is very aware of the deadlines, but it’s always good for you to be aware too.
One of the items on the timeline is the home inspection. It is important to have a professional do this, someone who is knowledgeable about building structure, electrical wiring, plumbing, roofs, and all the many things that make up a house or condo property. It is important for YOU to be at that home inspection, so that you can ask the inspector questions about what you are seeing…
Another important date is the final walk through. This is usually done about five days before the closing of the property, just before the property becomes YOURS. If repairs had to be done, were they finished? Was there personal property that went with the home? Is it still there? Were there items that were supposed to have been removed from the property? Are they gone? If you are satisfied with the state of the property, you can be assured that it will be just that way when you take possession in a few days. If you are not satisfied, you will need to discuss with your agent what things still need to be done…
Buying a home for the first time is a huge undertaking, and can be scary. A good real estate agent can help you through the process, answering questions and helping to alleviate your fears. If you need a good agent, call me, and I can help you. Tiare Dutcher 808-753-5327.
Wondering which direction are interest rates likely to move in the next year?
Guy Cecala, CEO of Inside Mortgage Finance believes:
The Federal Reserve launched a program to buy $1.45 trillion of mortgage securities this year, and it has helped to keep interest rates at—or near—historically low levels. But the money should be used up by the first quarter of next year. Interest rates are then likely to rise, possibly increasing to a full percentage point by the end of the year.
Federal Reserve Bank of St. Louis President James Bullard believes:
Past experience suggests policy makers may not start to raise interest rates until early 2012, while concern borrowing costs have stayed “too low for too long” may prompt an earlier move.
There are several different factors that drive the movement of interest rates. Activity in the purchase/sell of 10 year Treasury Bond, economic news such as unemployment, what the Federal Reserve Bank decides to do with the Fed Fund rate, and many other factors.
Which direction do you think mortgage rate will move?
- Linda Le, Loan Officer, Pacific Access Mortgage, 808-561-5943
The Federal Reserve launched a program to buy $1.45 trillion of mortgage securities this year, and it has helped to keep interest rates at—or near—historically low levels. But the money should be used up by the first quarter of next year. Interest rates are then likely to rise, possibly increasing to a full percentage point by the end of the year.
Federal Reserve Bank of St. Louis President James Bullard believes:
Past experience suggests policy makers may not start to raise interest rates until early 2012, while concern borrowing costs have stayed “too low for too long” may prompt an earlier move.
There are several different factors that drive the movement of interest rates. Activity in the purchase/sell of 10 year Treasury Bond, economic news such as unemployment, what the Federal Reserve Bank decides to do with the Fed Fund rate, and many other factors.
Which direction do you think mortgage rate will move?
- Linda Le, Loan Officer, Pacific Access Mortgage, 808-561-5943
Monday, November 16, 2009
Hawaii Real Estate Market at A Glance
In October, single family home listings were on the market an aveage of 52 days before received an accepted offer and going into escrow.
Condos were on the market for an average of 47 days before going into escrow.
This represents a very brisk market since 60 - 90 days represents a normal market demand.
One factor affecting this brisk market is the low inventory of homes and condos available.
In October, there were 1282 single family homes avaialble for sale. This is the lowest inventory since Sept of 2005. There were 1828 condos for sale. Thats the lowest inventory since Nov of 2005.
With these low inventories, it's imperative that home buyers have a Realtor to keep them abreast of properties that meet their needs when they come on the market since the demand is still very high, especially for homes in the $300K to $700K price range and condos in the $200K to $500K range. Homes and condos in these price ranges that are in above average condition generally received multiple offers.
If you're looking for a home in these price ranges and need assistance, call me at 351-1507.
Condos were on the market for an average of 47 days before going into escrow.
This represents a very brisk market since 60 - 90 days represents a normal market demand.
One factor affecting this brisk market is the low inventory of homes and condos available.
In October, there were 1282 single family homes avaialble for sale. This is the lowest inventory since Sept of 2005. There were 1828 condos for sale. Thats the lowest inventory since Nov of 2005.
With these low inventories, it's imperative that home buyers have a Realtor to keep them abreast of properties that meet their needs when they come on the market since the demand is still very high, especially for homes in the $300K to $700K price range and condos in the $200K to $500K range. Homes and condos in these price ranges that are in above average condition generally received multiple offers.
If you're looking for a home in these price ranges and need assistance, call me at 351-1507.
Friday, November 13, 2009
The Changing Landscape of Lending
Underwriting Guidelines have changed quite a bit and it keeps changing. A few of the major changes are Debt-to-Income Ratio, how long credit documents are good for, use of retirement, stock and bonds as assets, credit score minimum, and verification of employments.
Below is an example of how this will affect the borrower:
· Debt-to-Income Ratio – A Debt to Income Ratio is calculated based on the amount of gross income in relation to the amount of monthly debt obligation (credit card bill, car payment… etc). Previously lenders were allowed to go rather high on the ratio. Up to about 55% debt to income ratio. The new change is 45%. How will this affect the borrower? The borrower will be qualified for a lower loan amount.
· Credit documents – Credit documents such as the credit report will go from 120 days to 90 days. This means you’ll have to updated your information to the lender as it will only be good for 90 days.
· Assets – Lenders were able to use 100% of the fund in stock and mutual accounts and 70% for retirement fund. Now, they are only allowed to use 70% for stock and mutual fund accounts and 60% for retirement. If you are planning on using funds from either account to show proof that you have enough cash for closing cost, you’ll have to make sure that there is more than enough or cash out on it and transfer it to a savings account (which the lender can use 100% of the fund).
· Credit Score – Minimum credit score is 620. Make sure FICO scores are high. The higher the score the better.
· Verification of Employment – Make sure that there are no furloughs or projected furloughs (unless they have been account for at the beginning of the loan process). The stability of your job is very important so make sure everything stated on your loan application can be verified.
More changes will be announced in the next few months. For more information, please call Linda Le, Loan Officer at 808-561-5943 Stay tune for more…
Below is an example of how this will affect the borrower:
· Debt-to-Income Ratio – A Debt to Income Ratio is calculated based on the amount of gross income in relation to the amount of monthly debt obligation (credit card bill, car payment… etc). Previously lenders were allowed to go rather high on the ratio. Up to about 55% debt to income ratio. The new change is 45%. How will this affect the borrower? The borrower will be qualified for a lower loan amount.
· Credit documents – Credit documents such as the credit report will go from 120 days to 90 days. This means you’ll have to updated your information to the lender as it will only be good for 90 days.
· Assets – Lenders were able to use 100% of the fund in stock and mutual accounts and 70% for retirement fund. Now, they are only allowed to use 70% for stock and mutual fund accounts and 60% for retirement. If you are planning on using funds from either account to show proof that you have enough cash for closing cost, you’ll have to make sure that there is more than enough or cash out on it and transfer it to a savings account (which the lender can use 100% of the fund).
· Credit Score – Minimum credit score is 620. Make sure FICO scores are high. The higher the score the better.
· Verification of Employment – Make sure that there are no furloughs or projected furloughs (unless they have been account for at the beginning of the loan process). The stability of your job is very important so make sure everything stated on your loan application can be verified.
More changes will be announced in the next few months. For more information, please call Linda Le, Loan Officer at 808-561-5943 Stay tune for more…
Wednesday, November 11, 2009
The Tax Credit is Back!
First Time Home Buyers---it really is YOUR time to buy a home! And just to remind you that a first time home buyer is defined as not having owned a home for three years. So, if you’ve owned a home before, but have been renting for the past three or more years, you are considered a FIRST TIME home buyer!!
The deadline for the purchase of that home has now been extended, and expanded! You can still get that $8,000 tax credit if you close on your home by July 1, 2010. You must have an accepted contract on or before April 30, 2010. This gives you 61 days in which to close the contract. Not a lot of time in this day and age. Because of all the people who are trying to take advantage of this tax credit, the lenders, appraisers, and all the other people who need to process your transaction are overloaded.
Also, the income limits the new tax credit has placed on first time home buyers have been expanded. The limit was $75,000 for a single person, $150,000 for a married couple. That limit is now $125,000 for a single person, and $225,000 for a married couple.
In addition, where there was no restriction on the cost of that new home, now it cannot be greater than $800,000.
So, first time home buyers, get out there and find a property. I would love to help you find something. Please call me. Tiare Dutcher 808-753-5327.
The deadline for the purchase of that home has now been extended, and expanded! You can still get that $8,000 tax credit if you close on your home by July 1, 2010. You must have an accepted contract on or before April 30, 2010. This gives you 61 days in which to close the contract. Not a lot of time in this day and age. Because of all the people who are trying to take advantage of this tax credit, the lenders, appraisers, and all the other people who need to process your transaction are overloaded.
Also, the income limits the new tax credit has placed on first time home buyers have been expanded. The limit was $75,000 for a single person, $150,000 for a married couple. That limit is now $125,000 for a single person, and $225,000 for a married couple.
In addition, where there was no restriction on the cost of that new home, now it cannot be greater than $800,000.
So, first time home buyers, get out there and find a property. I would love to help you find something. Please call me. Tiare Dutcher 808-753-5327.
Tuesday, November 10, 2009
Uncovering a Best Buy Property!
There are number of ways to determine if a property is a best buy. As previously mentioned there are three popular approaches: 1.) for investors, rental property that yields a positive cash flow with minimal down payment. 2.) Property where the asking price is substantially below like kind homes that have sold within the last six months. 3.) Property where the quality or condition is above average, in a highly sought after area, in a neighborhood where the inventory for sale is relatively nonexistent and are selling at or below market value.The following is an example of the first approach. In Waikiki, Oahu there is a unique category of property called condo-hotels. These are hotels where the rooms in most cases are privately owned and leased back to the hotel or to a management company. However, some find it more profitable to manage the units themselves. Some of the more affordable and attractive buys are studio or one bed room units that have full kitchens.
In today’s market condo-hotels have unique financing issues. Due to various stigmas associated with transients and other uncertainties banks are reluctant to provide financing. As a result the prices for these types of purchases have dropped considerably. So in order to get into this lucrative market cash offers and seller financing is the order of the day. For those individuals who are able to maneuver in these waters it can be very rewarding. If you are interested in learning more about this unique market please feel free to contact Abron Toure at the Coldwell Banker, Waikiki Office my cell is 503 475 6872. Mahalo!
In today’s market condo-hotels have unique financing issues. Due to various stigmas associated with transients and other uncertainties banks are reluctant to provide financing. As a result the prices for these types of purchases have dropped considerably. So in order to get into this lucrative market cash offers and seller financing is the order of the day. For those individuals who are able to maneuver in these waters it can be very rewarding. If you are interested in learning more about this unique market please feel free to contact Abron Toure at the Coldwell Banker, Waikiki Office my cell is 503 475 6872. Mahalo!
Monday, November 9, 2009
Hawaii Real Estate Market Update
This past week was a good one for Hawaii real estate news.
The October Statistical Report showed the following positive factors for Oahu's real estate market:
281 Single Family Homes sold. This is up from 243 last October. This is the second consecutive month that home sales have improved vs prior year.
381 Condos sold. This is up from 316 last October. This is the third consecutive month that condo sales have improved vs prior year. This indicates a trend.
The median sales price for single family homes was $605,000. This was 15.6% under prior year's median price of $625,000.
The median sales price for condos was $295,000. This was 9.2% below prior year!
While unit sales out pace prior year, median sales prices are still going down and haven't quite levelled off yet. These indicators verify that this continues to be an EXCELLENT time for QUALIFIED BUYERS to purchase a home.
This along with the extension of the First Time Home Buyer credit to April and the expansion to include home owners that have lived in their homes for 5 of the past 7 years who are purchasing a home, adds more potential Buyers to the mix. This will create more impetus to positively effect the recovery of the residential real estate market.
If you're ready to take advantage of the new Extended and Expanded Home Buyer Tax Credit Program call Dwight Ellis at 808 351-1507.
Next week we'll discuss Days on Market, Months of Remaining Inventory and Neighborhoods to watch.
The October Statistical Report showed the following positive factors for Oahu's real estate market:
281 Single Family Homes sold. This is up from 243 last October. This is the second consecutive month that home sales have improved vs prior year.
381 Condos sold. This is up from 316 last October. This is the third consecutive month that condo sales have improved vs prior year. This indicates a trend.
The median sales price for single family homes was $605,000. This was 15.6% under prior year's median price of $625,000.
The median sales price for condos was $295,000. This was 9.2% below prior year!
While unit sales out pace prior year, median sales prices are still going down and haven't quite levelled off yet. These indicators verify that this continues to be an EXCELLENT time for QUALIFIED BUYERS to purchase a home.
This along with the extension of the First Time Home Buyer credit to April and the expansion to include home owners that have lived in their homes for 5 of the past 7 years who are purchasing a home, adds more potential Buyers to the mix. This will create more impetus to positively effect the recovery of the residential real estate market.
If you're ready to take advantage of the new Extended and Expanded Home Buyer Tax Credit Program call Dwight Ellis at 808 351-1507.
Next week we'll discuss Days on Market, Months of Remaining Inventory and Neighborhoods to watch.
Friday, November 6, 2009
Luxury & Lifestyle on Oahu!!
In past blogs I’ve discussed the value in today’s luxury market in Hawaii and the quality of architecture and design found in Hawaii’s luxury real estate market. But good values and quality can be found all over around the world. It’s the lifestyle that attracts the wealthy to Hawaii. With well over 30 Beach Parks, the island of Oahu is surrounded by some of the cleanest, whitest sand beaches in the world as well as exceptionally warm, clear, blue water. Along with a temperate climate year round Oahu is the perfect place to enjoy paddle boarding, surfing, kayaking, or outrigger canoeing. With as much beach frontage as Oahu offers it’s easy to find quiet secluded beaches. Oahu is also privileged enough to be the home of Lanikai Beach which is annually ranked as one of the best beaches in the world.
Oahu also boasts some of the best golfing in the world with almost 40 golf courses across the island, with 4 private courses and 22 semi-private courses. There are also approximately 10 Country Clubs on the island of Oahu providing the perfect atmosphere for that business lunch or cold drink after a round of golf.
It’s no secret that Oahu also offers some of the finest dining, from George Mavrothalassitis to Sam Choy, Alan Wong, and a host of others to world renowned shopping in Waikiki and Ala Moana Mall.
With the perfect weather, access to almost any activity, and good food, Honolulu is ranked in the top 3 healthiest cities in the U.S. by SELF Magazine, AARP Magazine, and Men’s Fitness Magazine.
Oahu offers luxury properties in all areas of the island so you’re sure to find the perfect luxury property that easily allows for the perfect luxury lifestyle.
Call Mandy Berner, RA 808-286-5845
Oahu also boasts some of the best golfing in the world with almost 40 golf courses across the island, with 4 private courses and 22 semi-private courses. There are also approximately 10 Country Clubs on the island of Oahu providing the perfect atmosphere for that business lunch or cold drink after a round of golf.
It’s no secret that Oahu also offers some of the finest dining, from George Mavrothalassitis to Sam Choy, Alan Wong, and a host of others to world renowned shopping in Waikiki and Ala Moana Mall.
With the perfect weather, access to almost any activity, and good food, Honolulu is ranked in the top 3 healthiest cities in the U.S. by SELF Magazine, AARP Magazine, and Men’s Fitness Magazine.
Oahu offers luxury properties in all areas of the island so you’re sure to find the perfect luxury property that easily allows for the perfect luxury lifestyle.
Call Mandy Berner, RA 808-286-5845
Wednesday, November 4, 2009
Still Waiting to Buy?
First Time Home Buyers: If you haven’t already purchased your home, for one of these reasons…
you needed to improve your credit,
you just couldn’t find that home,
you needed to save a little more money for your closing costs
you may in luck, as far as the $8,000 first time home buyer credit goes…. The deadline of December 1 may be extended to April 30, 2010. Hopefully, we will find out sometime this week.
AND for those of you who aren’t first time home buyers, you may also be in luck with a tax credit of $6,500. The criteria if the bill is passed is as follows:
Did you purchase your home more than 5 years ago?
Are you living in that home?
Do you want to buy a more expensive home now?
Stay tuned for more information on the always exciting what’s-going-on-in-the-world-of-real-estate-news…. Or call Tiare Dutcher at 808-753-5327.
you needed to improve your credit,
you just couldn’t find that home,
you needed to save a little more money for your closing costs
you may in luck, as far as the $8,000 first time home buyer credit goes…. The deadline of December 1 may be extended to April 30, 2010. Hopefully, we will find out sometime this week.
AND for those of you who aren’t first time home buyers, you may also be in luck with a tax credit of $6,500. The criteria if the bill is passed is as follows:
Did you purchase your home more than 5 years ago?
Are you living in that home?
Do you want to buy a more expensive home now?
Stay tuned for more information on the always exciting what’s-going-on-in-the-world-of-real-estate-news…. Or call Tiare Dutcher at 808-753-5327.
Monday, November 2, 2009
Where will rates go?
Here is some timely mortgage info that may be of interest regarding the Treasury Auctions and the possible lack of demand for long term securities in the future having a negative impact on low interest rates.
Also, an interesting explanation of how Rate Locks work for Alan Zukerkorn of Hawaii Mortgage Co, Inc.
Subject: Newsletter for the Week Ending 10/30/09
Mortgage Market News for the week ending October 30, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
GDP Increased
Inflation Steady
New Home Sales Down
Manufacturing Rose
Events Next Week:
Mon 11/2 ISM Manuf Pending Sales
Wed 11/4 Fed Meeting Treasury Announce ISM Services
Thur 11/5 Productivity
Fri 11/6 Employment
Record Auctions Produce Mixed Results
While daily volatility was high this week, mortgage rates ended just slightly lower than last week. The primary factors influencing mortgage rates were offsetting. The economic growth data released this week was stronger than expected, but inflation remained low. While the first two Treasury auctions produced impressive results, the final one was relatively weak.
Demand was extremely strong for this week's 2-yr and 5-yr Treasury auctions, but it slacked off considerably for the 7-yr securities. When demand is low, higher yields are required to attract investors. I n addition, the Treasury is interested in shifting its issuance toward a greater percentage of longer-term securities relative to shorter-term securities to lock in currently low rates. For mortgage markets, though, a move in this direction would add to the supply of competing investments. The Fed is already in the process of winding down its purchases of mortgage-backed securities, removing demand from the market. Higher supply of long-term investments and lower demand would pressure mortgage rates higher.
Government influence on mortgage markets has been substantial. It has pushed mortgage rates to historically low levels and has made credit available where it might not be otherwise. Two important programs, the first-time homebuyer tax credit and the extended conforming loan limits, were set to expire soon. Fortunately, both programs received strong support from lawmakers this week and are likely to be extended.
Rate Lock 101
For the consumer, the interest rate for one’s loan is generally the single most important part of the loan scenario. At some point in the process, your rate must be locked in for a set period of time. This time period is known as the “Rate Lock Commitment Period”. A rate can be locked for as little as 7 days, and in some cases as long as 120 days. Once a consumer accepts a desired rate at a certain cost (points or no points), their interest rate is then locked for a specific number of days.
What is a rate lock? This question seems redundant after the simple explanation above, but I will try and make it very clear. A rate lock is a commitment for and between the lender AND borrower. Every time I talk to a consumer about locking in their rate I always get asked the same question: “Will the lender lower my rate during the rate lock period if rates drop?” I always reply with a smile and ask the question “Should the lender raise your rate during the rate lock period if rates rise?” A rate lock commitment is not a one way street. Most consumers incorrectly assume that a rate lock commitment is a lock against rates getting any higher than the rate committed to. It is not!
When a consumer has their loan rate locked, it sets off a chain of events. The lender makes a commitment to the investor that will eventually own your loan (the secondary market, i.e. Fannie Mae or Freddie Mac) - committing themselves to deliver a loan that meets underwriting guidelines in a specific period of time at a specific interest. In other words, your rate lock is connected from you all the way to Fannie and Freddie. If the lender fails to deliver the loan to the secondary Market on time, they get penalized a percentage of the loan amount. That is why if your loan does not close within your rate lock period, the lender will charge you an extension fee to cover the cost of late delivery to the investor.
Next week I will dive deeper into the issues of bogus rate locks, who should pay for a lock extension if one is needed, and what happened to the “free float down”.
Also Notable:
Continuing Jobless Claims fell to 5.8 million, the lowest level since March
The September Core PCE inflation index rose at a tame 1.3% annual rate
The Chicago PMI manufacturing index rose to the highest level in one year
The Fed purchased $18 billion in agency MBS during the week ending 10/28
Average 30 yr fixed rate:
Last week:
+0.01%
This week:
-0.05%
Stocks (weekly):
Dow:
9,800
-200
NASDAQ:
2,060
-100
Week Ahead
The biggest economic event next week will be the Fed meeting on Wednesday. While no change in rates is expected, the Fed may indicate future changes in monetary policy. The important Employment report will come out on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a loss of about 165K jobs in October. In addition, the ISM Manufacturing index and Pending Home Sales will come out on Monday. ISM Services will be released on Wednesday. Productivity, Construction Spending, and Factory Orders will round out the busy schedule. The Treasury will announce the size of upcoming auctions on Wednesday as well.
All material Copyright © Hawaii Mortgage Company, Inc. & Ress No. 1, LTD and may not be reproduced without permission.
Also, an interesting explanation of how Rate Locks work for Alan Zukerkorn of Hawaii Mortgage Co, Inc.
Subject: Newsletter for the Week Ending 10/30/09
Mortgage Market News for the week ending October 30, 2009Distributed to over 12,000 Hawaii Subscribers Every Friday
Compliments of Alan Zukerkorn Hawaii Mortgage Company Inc.
PHONE:(808) 988-6622
FAX:(808) 988-7722
www.hawaiimortgage.net
alan@hawaiimortgage.net
Events This Week:
GDP Increased
Inflation Steady
New Home Sales Down
Manufacturing Rose
Events Next Week:
Mon 11/2 ISM Manuf Pending Sales
Wed 11/4 Fed Meeting Treasury Announce ISM Services
Thur 11/5 Productivity
Fri 11/6 Employment
Record Auctions Produce Mixed Results
While daily volatility was high this week, mortgage rates ended just slightly lower than last week. The primary factors influencing mortgage rates were offsetting. The economic growth data released this week was stronger than expected, but inflation remained low. While the first two Treasury auctions produced impressive results, the final one was relatively weak.
Demand was extremely strong for this week's 2-yr and 5-yr Treasury auctions, but it slacked off considerably for the 7-yr securities. When demand is low, higher yields are required to attract investors. I n addition, the Treasury is interested in shifting its issuance toward a greater percentage of longer-term securities relative to shorter-term securities to lock in currently low rates. For mortgage markets, though, a move in this direction would add to the supply of competing investments. The Fed is already in the process of winding down its purchases of mortgage-backed securities, removing demand from the market. Higher supply of long-term investments and lower demand would pressure mortgage rates higher.
Government influence on mortgage markets has been substantial. It has pushed mortgage rates to historically low levels and has made credit available where it might not be otherwise. Two important programs, the first-time homebuyer tax credit and the extended conforming loan limits, were set to expire soon. Fortunately, both programs received strong support from lawmakers this week and are likely to be extended.
Rate Lock 101
For the consumer, the interest rate for one’s loan is generally the single most important part of the loan scenario. At some point in the process, your rate must be locked in for a set period of time. This time period is known as the “Rate Lock Commitment Period”. A rate can be locked for as little as 7 days, and in some cases as long as 120 days. Once a consumer accepts a desired rate at a certain cost (points or no points), their interest rate is then locked for a specific number of days.
What is a rate lock? This question seems redundant after the simple explanation above, but I will try and make it very clear. A rate lock is a commitment for and between the lender AND borrower. Every time I talk to a consumer about locking in their rate I always get asked the same question: “Will the lender lower my rate during the rate lock period if rates drop?” I always reply with a smile and ask the question “Should the lender raise your rate during the rate lock period if rates rise?” A rate lock commitment is not a one way street. Most consumers incorrectly assume that a rate lock commitment is a lock against rates getting any higher than the rate committed to. It is not!
When a consumer has their loan rate locked, it sets off a chain of events. The lender makes a commitment to the investor that will eventually own your loan (the secondary market, i.e. Fannie Mae or Freddie Mac) - committing themselves to deliver a loan that meets underwriting guidelines in a specific period of time at a specific interest. In other words, your rate lock is connected from you all the way to Fannie and Freddie. If the lender fails to deliver the loan to the secondary Market on time, they get penalized a percentage of the loan amount. That is why if your loan does not close within your rate lock period, the lender will charge you an extension fee to cover the cost of late delivery to the investor.
Next week I will dive deeper into the issues of bogus rate locks, who should pay for a lock extension if one is needed, and what happened to the “free float down”.
Also Notable:
Continuing Jobless Claims fell to 5.8 million, the lowest level since March
The September Core PCE inflation index rose at a tame 1.3% annual rate
The Chicago PMI manufacturing index rose to the highest level in one year
The Fed purchased $18 billion in agency MBS during the week ending 10/28
Average 30 yr fixed rate:
Last week:
+0.01%
This week:
-0.05%
Stocks (weekly):
Dow:
9,800
-200
NASDAQ:
2,060
-100
Week Ahead
The biggest economic event next week will be the Fed meeting on Wednesday. While no change in rates is expected, the Fed may indicate future changes in monetary policy. The important Employment report will come out on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Early estimates are for a loss of about 165K jobs in October. In addition, the ISM Manufacturing index and Pending Home Sales will come out on Monday. ISM Services will be released on Wednesday. Productivity, Construction Spending, and Factory Orders will round out the busy schedule. The Treasury will announce the size of upcoming auctions on Wednesday as well.
All material Copyright © Hawaii Mortgage Company, Inc. & Ress No. 1, LTD and may not be reproduced without permission.
Thursday, October 29, 2009
Buying Your First Home
First Time Home Buyers: Here are a few more things to think about before you start to buy a home….
You’ve checked your credit. You’ve found a loan company you are comfortable with, and you know how much loan you qualify for. You’ve found a great agent to work with you.
What area do you want to live in? Do you want a house or a condo? Can you afford a house this first time, or will you need to buy a condo at first, then a house in a few years? How many bedrooms do you need? How many can you afford? Can you afford as much condo or house now as you want, or will you need something smaller at first, then bigger in a few years?
These are a few questions that your agent will need to know, so that he or she can find that property that is right for you. You can help your agent look for those properties by going online and looking at different sites like www.coldwellbankerpacific.com or www.hicentral.com.
I can help you find that home you are looking for. Just call Tiare Dutcher at 808-753-5327.
You’ve checked your credit. You’ve found a loan company you are comfortable with, and you know how much loan you qualify for. You’ve found a great agent to work with you.
What area do you want to live in? Do you want a house or a condo? Can you afford a house this first time, or will you need to buy a condo at first, then a house in a few years? How many bedrooms do you need? How many can you afford? Can you afford as much condo or house now as you want, or will you need something smaller at first, then bigger in a few years?
These are a few questions that your agent will need to know, so that he or she can find that property that is right for you. You can help your agent look for those properties by going online and looking at different sites like www.coldwellbankerpacific.com or www.hicentral.com.
I can help you find that home you are looking for. Just call Tiare Dutcher at 808-753-5327.
Tuesday, October 27, 2009
Real Estate Agents Finding you a Best Buy!
In previous blog spots we have discussed the three different ways to identify “Best Buys”.
1.) Investors who purchase a property with 30 to 40% down and the monthly rent minus all expenses yields a positive cash flow. The larger the positive cash flow the better.
2.) Then there are those properties of equal value and quality where the list price is significantly below the sales price for most recently sold of like kind.
3.) We also discussed those properties in highly sought after areas where inventory is scares or availability is rare; and when a property becomes available it is price aggressively to sell.
Now we want to propose another condition for “Best Buy”, this has to do with the skill of the real estate agent. There are cases where the experience and knowledge of the real estate agent can turn what is not an obvious best buy into a great buy. It is the ability of the agent to negotiate and filter accurate information to resolve complicated issues that can prove invaluable to the client turning what would be an unattractive buy because of problems at first glance seeming very difficult to solve into winners. The cases that come to mind are:
1.) Zoning Issues
2.) Foreclosures
3.) Short Sales
4.) Fixer Uppers
If you are a seller or a buyer where any of the four above may apply please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how these issues can be turned into a win-win for buyer or seller.
1.) Investors who purchase a property with 30 to 40% down and the monthly rent minus all expenses yields a positive cash flow. The larger the positive cash flow the better.
2.) Then there are those properties of equal value and quality where the list price is significantly below the sales price for most recently sold of like kind.
3.) We also discussed those properties in highly sought after areas where inventory is scares or availability is rare; and when a property becomes available it is price aggressively to sell.
Now we want to propose another condition for “Best Buy”, this has to do with the skill of the real estate agent. There are cases where the experience and knowledge of the real estate agent can turn what is not an obvious best buy into a great buy. It is the ability of the agent to negotiate and filter accurate information to resolve complicated issues that can prove invaluable to the client turning what would be an unattractive buy because of problems at first glance seeming very difficult to solve into winners. The cases that come to mind are:
1.) Zoning Issues
2.) Foreclosures
3.) Short Sales
4.) Fixer Uppers
If you are a seller or a buyer where any of the four above may apply please do not hesitate to call 503 475 6872, Abron Toure. Let me show you how these issues can be turned into a win-win for buyer or seller.
Monday, October 26, 2009
Why Is This Still a Good Time to Buy Real Estate?
Even though it may be too late to take advantage of the First Time Home Buyer $8000 Tax Credit Program, if you aren't already in escrow, it's still a very good time to buy for other reasons.
1. Property prices are the lowest they've been since the peak of the market in 2007. Inventory levels dropped to 1998 levels early in 2009, but they've begun to improve to levels in 2000. This has caused prices to slow down in the rate of decrease. While prices are still decreasing, it's at a much lower rate than previously.
As an example, single family home median prices year to date are down 16.2% vs prior year. However, in Sept, they were down only 8%. Condo prices are down 10.8% year to date, but in September, they were down only 7.7%. This would indicate that there isn't a significant advantage to getting a much lower price by waiting.
2. Interest rates are still under 5%. This may not last much longer since the Fed is planning a slowdown in the level of purchasing mortgage backed securities (MBS) until the program ends early next year. These purchases have been artificially keeping interest rates down. Interest rates will begin to rise once this program begins cutting back and eventually end.
3. With the artificially low interest rates, buyers experience increased PURCHASING POWER. This will decrease when interest rates begin to rise.
4. FHA loans are still available with as little as 3.5% down. Down payments have the flexibility of being provided by other than the Buyer's resources. (ie, the use of gifted funds, etc.) Current discussions are in progress about increasing the minimum down payment for this program.
5. The eventual appreciation in value and the advantage of interest deductions on taxes are other POSITIVE factors that make this still a good time for purchasing real estate.
For assistance in finding your new home, contact Dwight Ellis at 808 351-1507 for a free HOME BUYER consultation!
1. Property prices are the lowest they've been since the peak of the market in 2007. Inventory levels dropped to 1998 levels early in 2009, but they've begun to improve to levels in 2000. This has caused prices to slow down in the rate of decrease. While prices are still decreasing, it's at a much lower rate than previously.
As an example, single family home median prices year to date are down 16.2% vs prior year. However, in Sept, they were down only 8%. Condo prices are down 10.8% year to date, but in September, they were down only 7.7%. This would indicate that there isn't a significant advantage to getting a much lower price by waiting.
2. Interest rates are still under 5%. This may not last much longer since the Fed is planning a slowdown in the level of purchasing mortgage backed securities (MBS) until the program ends early next year. These purchases have been artificially keeping interest rates down. Interest rates will begin to rise once this program begins cutting back and eventually end.
3. With the artificially low interest rates, buyers experience increased PURCHASING POWER. This will decrease when interest rates begin to rise.
4. FHA loans are still available with as little as 3.5% down. Down payments have the flexibility of being provided by other than the Buyer's resources. (ie, the use of gifted funds, etc.) Current discussions are in progress about increasing the minimum down payment for this program.
5. The eventual appreciation in value and the advantage of interest deductions on taxes are other POSITIVE factors that make this still a good time for purchasing real estate.
For assistance in finding your new home, contact Dwight Ellis at 808 351-1507 for a free HOME BUYER consultation!
Friday, October 23, 2009
TRUMP INTERNATIONAL TOWER & HOTEL
The first ultra-luxury hotel-condominium property to be built in Waikiki in 25 years is scheduled to be open November 1st, 2009. The Trump International Tower & Hotel Waikiki Beach Walk offers it all. Located in the recently redeveloped Beach Walk area of Waikiki this luxurious condominium offers convenience to the best shops, restaurants, and entertainment as well as some of the best views on the island. But what makes this property special and truly luxurious is the lifestyle that it offers. Trump Tower offers everything from 24 hour concierge, 24 hour in-room dining, to valet parking, full service spa, contemporary fitness center and more.
Trump Tower offers studios, 1 bedrooms, 1 bedrooms + dens, 2 bedrooms, 2 bedroom + dens, & 3 bedrooms $551,000 to $4,900,000. The units range from 350 sq. ft. to 3,000 sq. ft. and prices range from The units themselves offer beautifully refined interior designs of natural stone, hand-crafted millwork, and top of the line stainless steel appliances.
In November 2006, 462 units were pre-sold in one day for a total of $700 million, possibly the fastest real estate sale in history. If you missed out in 2006, call Mandy now for your opportunity to own in the world renowned Trump Tower in Waikiki… Mandy Berner, RA 808-286-5845.
Trump Tower offers studios, 1 bedrooms, 1 bedrooms + dens, 2 bedrooms, 2 bedroom + dens, & 3 bedrooms $551,000 to $4,900,000. The units range from 350 sq. ft. to 3,000 sq. ft. and prices range from The units themselves offer beautifully refined interior designs of natural stone, hand-crafted millwork, and top of the line stainless steel appliances.
In November 2006, 462 units were pre-sold in one day for a total of $700 million, possibly the fastest real estate sale in history. If you missed out in 2006, call Mandy now for your opportunity to own in the world renowned Trump Tower in Waikiki… Mandy Berner, RA 808-286-5845.
Thursday, October 22, 2009
Why do Loan Officers Ask For So Much Paperwork?
Loan officers ask for way too many paperwork and they have borrowers sign way too many documents! The standard financial paperwork that a loan officer will ask for are:
Most current two years federal tax returns (Year To Date Profit and Loss Statement for self-employed)
Most current one full month of paystub(s)
W-2 statements for the past two years
Most current 2 months (reflecting a 30 day history) bank statement
Once those documents are submitted to the loan officer they will review the documents and determine whether or not more documentation is needed. Here are some examples of when a loan officer will ask for more documents:
· The bank statement shows a large deposit that is not the normal amount of your deposits. Where did that money come from? Or the total balance is less than what you need for closing cost.
· Tax returns show that you have a small partnership in another company or have a second business that was not documented in the loan application because it’s just “play” money and “not that important”. If it shows anywhere on any of the documents provided, lenders will ask for more information regarding it.
There are more situations that may occur where your loan officer will ask for more documents. Trust me when I tell you that we really don’t want to ask for it but it’s a must to ensure proper documentation and due diligence.
– Linda Le, 808-561-5943, Loan Officer, Pacific Access Mortgage
Most current two years federal tax returns (Year To Date Profit and Loss Statement for self-employed)
Most current one full month of paystub(s)
W-2 statements for the past two years
Most current 2 months (reflecting a 30 day history) bank statement
Once those documents are submitted to the loan officer they will review the documents and determine whether or not more documentation is needed. Here are some examples of when a loan officer will ask for more documents:
· The bank statement shows a large deposit that is not the normal amount of your deposits. Where did that money come from? Or the total balance is less than what you need for closing cost.
· Tax returns show that you have a small partnership in another company or have a second business that was not documented in the loan application because it’s just “play” money and “not that important”. If it shows anywhere on any of the documents provided, lenders will ask for more information regarding it.
There are more situations that may occur where your loan officer will ask for more documents. Trust me when I tell you that we really don’t want to ask for it but it’s a must to ensure proper documentation and due diligence.
– Linda Le, 808-561-5943, Loan Officer, Pacific Access Mortgage
Wednesday, October 21, 2009
First Time Home Buyers---Here are some things you need to think about before you start to look for your dream home…
Before you start to look for that home, check your credit report with all three credit reporting companies (TransUnion, Experian, and Equifax). It is important to do this a few months before you begin that search for your home because if there are any things that need to be corrected on your credit reports, this will allow enough time to do so.
Ask lots of questions of the agent who is representing you. You and your agent will work as a team to find the best property you can afford. The looking process could be quick, or it could be lengthy, so make sure you find someone you are comfortable with.
You will need to shop around for a loan. Different mortgage brokers might have different interest rates available to them, so don’t just accept the first loan package that comes along. For example, if you think you will be in the property for a short time (two or three years) before you move on, you will not want to have large discount points up front. It would be better to pay a higher interest rate.
Stay tuned for next week’s continuation of these things to think about. There are more. If you can’t wait till next week, call Tiare Dutcher at 808-753-5327.
Before you start to look for that home, check your credit report with all three credit reporting companies (TransUnion, Experian, and Equifax). It is important to do this a few months before you begin that search for your home because if there are any things that need to be corrected on your credit reports, this will allow enough time to do so.
Ask lots of questions of the agent who is representing you. You and your agent will work as a team to find the best property you can afford. The looking process could be quick, or it could be lengthy, so make sure you find someone you are comfortable with.
You will need to shop around for a loan. Different mortgage brokers might have different interest rates available to them, so don’t just accept the first loan package that comes along. For example, if you think you will be in the property for a short time (two or three years) before you move on, you will not want to have large discount points up front. It would be better to pay a higher interest rate.
Stay tuned for next week’s continuation of these things to think about. There are more. If you can’t wait till next week, call Tiare Dutcher at 808-753-5327.
Tuesday, October 20, 2009
A Best Buy in Waikiki
This week’s “Best Buy” features two listing from the Waikiki Office, The Waikiki Sunset Unit 1807 and The Rosalei Ltd Unit 402. Both are true one bedroom, one bath and come with parking.
The Waikiki Sunset unit lists for $225,000 Lease Hold. The Fee has been reserved for $98,200. This brings the total Fee Simple price $323,200. The unit has a lanai with access from both the living room and bedroom. The living space gives one a unique "I'm home in paradise" feel. The building boasts good management. This is a good buy for the first-time home buyer. The unit has good potential positive cash flow for an investor and the possibility for future sales is desirable. The Waikiki Sunset has had 7 units sell in the last 6 months.
The Rosalei Ltd Unit 402 list $199.000 Fee Simple. This is a short sale. The condition is above average. It comes with a large lanai. The building is VA and FHA approved. This is a good opportunity for a renter to convert to an owner as well as an excellent opportunity for the first time home buyer. It is worth noting that the VA financing allows a no-money-down option. The unit also may meet an investor strategy who is seeking good potential cash flow. Future re-sale is also a good possibility. Sales in the Rosalei have been very active. Five units have sold since June of 2009.
If you would like any further information about these two properties or investment opportunities here in Hawaii please do not hesitate to call Abron Toure. My cell phone number is 503 475 6872.
The Waikiki Sunset unit lists for $225,000 Lease Hold. The Fee has been reserved for $98,200. This brings the total Fee Simple price $323,200. The unit has a lanai with access from both the living room and bedroom. The living space gives one a unique "I'm home in paradise" feel. The building boasts good management. This is a good buy for the first-time home buyer. The unit has good potential positive cash flow for an investor and the possibility for future sales is desirable. The Waikiki Sunset has had 7 units sell in the last 6 months.
The Rosalei Ltd Unit 402 list $199.000 Fee Simple. This is a short sale. The condition is above average. It comes with a large lanai. The building is VA and FHA approved. This is a good opportunity for a renter to convert to an owner as well as an excellent opportunity for the first time home buyer. It is worth noting that the VA financing allows a no-money-down option. The unit also may meet an investor strategy who is seeking good potential cash flow. Future re-sale is also a good possibility. Sales in the Rosalei have been very active. Five units have sold since June of 2009.
If you would like any further information about these two properties or investment opportunities here in Hawaii please do not hesitate to call Abron Toure. My cell phone number is 503 475 6872.
Monday, October 19, 2009
Hawaii Market at A Glance!
In last week's blog, I discussed the stats for home and condo sales in Sept and what the trend may be in October.
This week we'll identify neighborhoods that are reflecting the first indications of Stage One of the Real Estate Cycle.
Stage One is when unit sales are above prior year sales and median sales prices are slightly below to even with prior year. Three months of these tendencies in a neighborhood would confirm a stage one trend.
For single family homes in September, the following single family neighborhood was exhibiting stage one tendencies:
Units Sold vs Pr Yr Median Sales Price vs Pr Yr
Waipahu 7 vs 13 $493,000 vs $$511,000
Stage 2 is when unit sales are above prior year and median sales prices are above prior year. The following single family neighborhoods exhibited stage 2 tendencies:
Hawaii Kai 25 vs 7 $830,000 vs $665,000
Windward Coast 4 vs 3 $492,500 vs $444,000
Stage One Condo Neighborhoods:
Kalihi/Palama 10 vs 5 $291,500 vs $292,900
Ala Moana/Kakaako 38 vs 21 $425,000 vs $415,000
Hawaii Kai 21 vs 15 $510,000 vs $511,000
Mililani 26 vs 18 $294,000 vs $297,000
Stage Two Condo Neighborhoods:
Moanalua/Salt Lake 26 vs 14 $300,000 vs $294,000
Makakilo 8 vs 5 $275,908 vs $247,200
How does this affect you if you're a Buyer or Seller?
Contact Dwight Ellis at 808 351-1507 for more information!
This week we'll identify neighborhoods that are reflecting the first indications of Stage One of the Real Estate Cycle.
Stage One is when unit sales are above prior year sales and median sales prices are slightly below to even with prior year. Three months of these tendencies in a neighborhood would confirm a stage one trend.
For single family homes in September, the following single family neighborhood was exhibiting stage one tendencies:
Units Sold vs Pr Yr Median Sales Price vs Pr Yr
Waipahu 7 vs 13 $493,000 vs $$511,000
Stage 2 is when unit sales are above prior year and median sales prices are above prior year. The following single family neighborhoods exhibited stage 2 tendencies:
Hawaii Kai 25 vs 7 $830,000 vs $665,000
Windward Coast 4 vs 3 $492,500 vs $444,000
Stage One Condo Neighborhoods:
Kalihi/Palama 10 vs 5 $291,500 vs $292,900
Ala Moana/Kakaako 38 vs 21 $425,000 vs $415,000
Hawaii Kai 21 vs 15 $510,000 vs $511,000
Mililani 26 vs 18 $294,000 vs $297,000
Stage Two Condo Neighborhoods:
Moanalua/Salt Lake 26 vs 14 $300,000 vs $294,000
Makakilo 8 vs 5 $275,908 vs $247,200
How does this affect you if you're a Buyer or Seller?
Contact Dwight Ellis at 808 351-1507 for more information!
Friday, October 16, 2009
Waikiki Best Buys
The following are true three bedrooms in Waikiki. All are fee simple. The first is listed for $522.900. It is on a high floor at 1717 Ala Wai Blvd. unit 2710. It has 1130 square feet of living space and an open lanai of 100 square feet. There were two units sold in this building in August of 2009, unit 2901, has 1084 square feet of living space and 150 square foot lanai. It was listed at $535,000 and sold at $495,000. Then there was unit 2706. It has 1348 square feet of living space and 147 square foot lanai. It was listed at $548,000 and sold at $505,000.
The next examples of 3 bedrooms comparable with that mentioned at 1717 Ala Wai Blvd. The units are at Big Surf. One is listed at $300,000 on a low floor, unit 301. The square foot living space is 912 and 182 square feet for the lanai. The address of Big Surf is 1690 Ala Moana Blvd. The other unit at Big Surf is unit number 1201. It list at $485,000 and has 912 square feet of living space and 182 square foot lanai. You have to go back as far as November 2007 to find a 3 bedroom that sold at Big Surf. It was listed for $458,000 and sold for $430,000.
Finally there is another 3 bedroom at 320 Ainakea Way, unit 611 with 1165 square feet of living space and 194 square foot lanai. It list at $499.000. It should be noted that there have been no 3 bedrooms sales in this building as far back as January of 2007.
If you would like any further information on any of these units please contact, Abron Toure at the Coldwell Banker Waikiki Office, cell number is 503 475 6872, Mahalo.
The next examples of 3 bedrooms comparable with that mentioned at 1717 Ala Wai Blvd. The units are at Big Surf. One is listed at $300,000 on a low floor, unit 301. The square foot living space is 912 and 182 square feet for the lanai. The address of Big Surf is 1690 Ala Moana Blvd. The other unit at Big Surf is unit number 1201. It list at $485,000 and has 912 square feet of living space and 182 square foot lanai. You have to go back as far as November 2007 to find a 3 bedroom that sold at Big Surf. It was listed for $458,000 and sold for $430,000.
Finally there is another 3 bedroom at 320 Ainakea Way, unit 611 with 1165 square feet of living space and 194 square foot lanai. It list at $499.000. It should be noted that there have been no 3 bedrooms sales in this building as far back as January of 2007.
If you would like any further information on any of these units please contact, Abron Toure at the Coldwell Banker Waikiki Office, cell number is 503 475 6872, Mahalo.
Thursday, October 15, 2009
What is the Home Affordable Refinance Program (HARP)?
HARP is part of the program that was developed for homeowners who are not able to take advantage of the lower interest rates because of decreasing home values. This part of the program is for credit worthy individuals that are not behind in their current mortgage payments. HARP has a fixed interest rate over the life of the loan and could be beneficial for homeowners who property values has decreased and/or have adjustable mortgage rate.
Here are some of the qualifications of the HARP Mortgage Refinancing Qualifications:
The current mortgage loan must be owned or guaranteed by Freddie Mac of Fannie Mae
The amount still outstanding on the first mortgage cannot be more than 125% of the current market value
The current mortgage payments must be current and no late payments over 30 days in the last 12 months
The homeowner(s) must be able to make the refinance payments (income to debt)
If you would like to see if you qualify for this please feel free to contact me at 808-561-5943. – Linda Le, Loan Officer, Pacific Access Mortgage
Here are some of the qualifications of the HARP Mortgage Refinancing Qualifications:
The current mortgage loan must be owned or guaranteed by Freddie Mac of Fannie Mae
The amount still outstanding on the first mortgage cannot be more than 125% of the current market value
The current mortgage payments must be current and no late payments over 30 days in the last 12 months
The homeowner(s) must be able to make the refinance payments (income to debt)
If you would like to see if you qualify for this please feel free to contact me at 808-561-5943. – Linda Le, Loan Officer, Pacific Access Mortgage
Wednesday, October 14, 2009
First Time Home Buyers---YOUR CLOCK IS TICKING!!!
You have just a few more days to find that property you want to purchase, in order to qualify for the $8000 first time home buyer tax credit. The property has to be closed by December 1, 2009. Since it takes 30 to 45 days to close on a property, and with Thanksgiving the week before, and a slew of other people trying to close their properties, too, you should be putting in that offer TODAY!!
If you can get an accepted offer by October 20th, and if there aren’t any problems associated with the property (that is, large repairs that need to be made before the closing, etc.), you should be okay….
Good luck!
And even if you aren’t able to get the $8000 tax credit, interest rates are still at all time lows (around 4.5%), so it is a great time to buy that first home.
Call me now to help you buy that first property. You’ll be glad you did.
Tiare Dutcher 808-753-5327.
If you can get an accepted offer by October 20th, and if there aren’t any problems associated with the property (that is, large repairs that need to be made before the closing, etc.), you should be okay….
Good luck!
And even if you aren’t able to get the $8000 tax credit, interest rates are still at all time lows (around 4.5%), so it is a great time to buy that first home.
Call me now to help you buy that first property. You’ll be glad you did.
Tiare Dutcher 808-753-5327.
Monday, October 12, 2009
Sales and Prices Shoot Up in September!
244 single family homes sold in September, up from 215 last year. 345 condos sold, up from 305 last year. This is the first month this year that both single family and condo unit sales both exceeded prior year in the same month!
Sept single family median sales price was $600,000 vs 2008 at $590,000. This represents a $10,000 improvement vs prior year.
Sept condo median sales price of $305,000 was above prior year by $9,000. Last years median price was $296,000.
The question is, Does this represent a trend? Are we on the verge of transitioning from a Stage 4 market to a Stage 1 market?
Will unit sales and prices rebound in the fourth quarter vs prior year, remain level with prior year or exceed prior year?
With the activity generated by the first time home buyer credit and continuing low interest rates, it'll be interesting to see if the median sales price in Oct for single family homes and condos exceeds the median sales price in 2008. If it does, that would be the second consecutive month. Three months in a row would constitute a trend.
I expect it will remain fairly level as long as inventory levels remain below prior year and days on market remain under 60 days and interest rates remain low.
What does this mean to potential Buyers and Sellers?
Contact me, Dwight Ellis at 808 351-1507 or dwighte@cbpacific.com to schedule a private consultation.
Sept single family median sales price was $600,000 vs 2008 at $590,000. This represents a $10,000 improvement vs prior year.
Sept condo median sales price of $305,000 was above prior year by $9,000. Last years median price was $296,000.
The question is, Does this represent a trend? Are we on the verge of transitioning from a Stage 4 market to a Stage 1 market?
Will unit sales and prices rebound in the fourth quarter vs prior year, remain level with prior year or exceed prior year?
With the activity generated by the first time home buyer credit and continuing low interest rates, it'll be interesting to see if the median sales price in Oct for single family homes and condos exceeds the median sales price in 2008. If it does, that would be the second consecutive month. Three months in a row would constitute a trend.
I expect it will remain fairly level as long as inventory levels remain below prior year and days on market remain under 60 days and interest rates remain low.
What does this mean to potential Buyers and Sellers?
Contact me, Dwight Ellis at 808 351-1507 or dwighte@cbpacific.com to schedule a private consultation.
Saturday, October 10, 2009
Lots of Interest - Better Hurry to Make an Offer on REO at the Peninsula in Hawaii Kai!
This week’s highlighted bank owned (REO) property is listed substantially lower than the last comparable sale that occurred less than 60 days ago.
520 Lunalilo Home Road V3407, at the Peninsula in Hawaii Kai, is a 1,584 s.f. residence with 3 bedrooms. The town home is a corner unit with a 2 car garage. The Peninsula is a very popular East Oahu community known for its landscaped grounds, marina and amenities such as walking/jogging path, BBQ, club house, exercise room, recreation/party room and pool. This property is NOT a short sale and listed at $575,000 fee simple, courtesy of Michael R. Kwak, Realtor Associate.
Contact me to represent you on the purchase of this property or if you are interesting in obtaining information on other REO’s or foreclosed homes.
Rosemary Smith, RA
(808) 271-5220 Cellular
rosemarys@cbpacific.com
Licensed in Hawaii and New York
520 Lunalilo Home Road V3407, at the Peninsula in Hawaii Kai, is a 1,584 s.f. residence with 3 bedrooms. The town home is a corner unit with a 2 car garage. The Peninsula is a very popular East Oahu community known for its landscaped grounds, marina and amenities such as walking/jogging path, BBQ, club house, exercise room, recreation/party room and pool. This property is NOT a short sale and listed at $575,000 fee simple, courtesy of Michael R. Kwak, Realtor Associate.
Contact me to represent you on the purchase of this property or if you are interesting in obtaining information on other REO’s or foreclosed homes.
Rosemary Smith, RA
(808) 271-5220 Cellular
rosemarys@cbpacific.com
Licensed in Hawaii and New York
Friday, October 9, 2009
The Forgotten Luxury Market... Condos!
Featured Property: Hokua at 1288 Ala Moana
The size and comfort of a single family home, the convenience of a residential condominium, the amenities of a world-class resort, and the best views Honolulu has to offer. A luxurious residence that has more in common with a single family home than a traditional condominium.
Located on Ala Moana Blvd. across the street from Ala Moana Beach Park, Hokua enjoys the classy lifestyle of Kakaako with all the convenience of Waikiki and Ala Moana. What sets Hokua apart from other high rise condominiums is its amenities. The dominant feature of Hokua's recreation deck is a vanishing edge pool with a sweeping view of the Pacific Ocean, bordered at the back by a row of jacuzzis. Closer to the main building, there are five separate enclosed barbeque cabanas, equipped with gas ranges, that may be used for family gatherings, parties, or any other occasion. One feature that has been particularly well received is the Bark Park. Residents can have up to two dogs of less than 40 pounds each - a rarity in itself - and at the street level they may be taken off their leashes and given free reign in two park areas, one for small dogs and one for large dogs. Other marquee offerings include a play area adjacent to the pool area which features a court surface with markings for tennis and basketball, as well as more conventional playground equipment for younger children. A fully equipped, state-of-the-art fitness center and spa, with locker rooms, a steam room and sauna, eliminates the need to go to an outside gym. Furthermore, the Hokua Business Center offers meeting rooms for those residents wishing to receive guests in a more formal setting.
Built in 2004, Hokua offers 2 & 3 bedroom condos ranging from 1,463 sq.ft. 2 bedrooms to 4,315 sq.ft. penthouse lofts. These condos currently range from $1,295,000 for a low floor 2 bedroom unit to $3,750,000 for a 2,222 sq.ft. 3 bedroom, 2.5 bath penthouse loft.
To view this truly luxurious condominium, call Mandy Berner, RA at 808-286-5845.
The size and comfort of a single family home, the convenience of a residential condominium, the amenities of a world-class resort, and the best views Honolulu has to offer. A luxurious residence that has more in common with a single family home than a traditional condominium.
Located on Ala Moana Blvd. across the street from Ala Moana Beach Park, Hokua enjoys the classy lifestyle of Kakaako with all the convenience of Waikiki and Ala Moana. What sets Hokua apart from other high rise condominiums is its amenities. The dominant feature of Hokua's recreation deck is a vanishing edge pool with a sweeping view of the Pacific Ocean, bordered at the back by a row of jacuzzis. Closer to the main building, there are five separate enclosed barbeque cabanas, equipped with gas ranges, that may be used for family gatherings, parties, or any other occasion. One feature that has been particularly well received is the Bark Park. Residents can have up to two dogs of less than 40 pounds each - a rarity in itself - and at the street level they may be taken off their leashes and given free reign in two park areas, one for small dogs and one for large dogs. Other marquee offerings include a play area adjacent to the pool area which features a court surface with markings for tennis and basketball, as well as more conventional playground equipment for younger children. A fully equipped, state-of-the-art fitness center and spa, with locker rooms, a steam room and sauna, eliminates the need to go to an outside gym. Furthermore, the Hokua Business Center offers meeting rooms for those residents wishing to receive guests in a more formal setting.
Built in 2004, Hokua offers 2 & 3 bedroom condos ranging from 1,463 sq.ft. 2 bedrooms to 4,315 sq.ft. penthouse lofts. These condos currently range from $1,295,000 for a low floor 2 bedroom unit to $3,750,000 for a 2,222 sq.ft. 3 bedroom, 2.5 bath penthouse loft.
To view this truly luxurious condominium, call Mandy Berner, RA at 808-286-5845.
Thursday, October 8, 2009
Ever Wonder How Rates are Determined?
Last week we blog on why lenders ask so many questions during the pre-qualification process. Ever wonder why each lender have different rates and how interest rates are determined?
Below are a few things lenders look at when determining an individual’s interest rate:
Is the subject property a single family home or a condo? The cost to get a better rate increases by .75% if your down payment is less than 25% on a condo.
Type of Loan: Rates differ for VA, FHA and USDA loans
Type of Borrower: if your credit scores are higher your rate will be better
Purchase or Refinance: If you are purchasing a new place, the rate is better by .5%.
Extended Locks: If you lock in a rate, there is an increase to the cost if you do a 45 day or longer.
Each lender’s rate may differ because that bank’s cost to borrow the money may have been higher.
Timing: And last but not least, the day you lock in plays a key part to the rate. You may lock in one day and the next day the rate may either go up or down. It’s a daily (and sometimes hourly) gamble.
Remember these items when you wonder why your rate is different from someone else’s rate. To get a quote for today’s rate, give me a call at 808-561-5943 or email me at lle@pacificaccessmortgage.com. – Linda Le, Loan Officer, Pacific Access Mortgage
Below are a few things lenders look at when determining an individual’s interest rate:
Is the subject property a single family home or a condo? The cost to get a better rate increases by .75% if your down payment is less than 25% on a condo.
Type of Loan: Rates differ for VA, FHA and USDA loans
Type of Borrower: if your credit scores are higher your rate will be better
Purchase or Refinance: If you are purchasing a new place, the rate is better by .5%.
Extended Locks: If you lock in a rate, there is an increase to the cost if you do a 45 day or longer.
Each lender’s rate may differ because that bank’s cost to borrow the money may have been higher.
Timing: And last but not least, the day you lock in plays a key part to the rate. You may lock in one day and the next day the rate may either go up or down. It’s a daily (and sometimes hourly) gamble.
Remember these items when you wonder why your rate is different from someone else’s rate. To get a quote for today’s rate, give me a call at 808-561-5943 or email me at lle@pacificaccessmortgage.com. – Linda Le, Loan Officer, Pacific Access Mortgage
Wednesday, October 7, 2009
FIRST TIME HOME BUYERS, HERE IS THE LATEST NEWS!!!!
Over the last 30 years, now is the BEST time to buy! The interest rates are lower than they have been for a LONG time. Even in the peak buying years of 2004 and 2005, the interest rates were higher than they are now. Just today, the mortgage lenders with Pacific Access Mortgage told me that the interest rates are only 4.5%. That translates to more buying power for you. For example, a $400,000 loan at 7% would cost you almost $650 more per month than a loan at 4.5%. A $240,000 loan at 7% would be $380 more per month than a loan at 4.5%.... Now is definitely the time to buy!
Call Tiare Dutcher today at 808-753-5327 to set up an appointment to find that first time home you’ve been looking for.
Call Tiare Dutcher today at 808-753-5327 to set up an appointment to find that first time home you’ve been looking for.
Tuesday, October 6, 2009
Unusual Best Buy in the Luxury Market
Recently stumbled upon a “Best Buy”, it is a high end condo listed at $2.9 million. The monthly taxes and fees total $5,675. The reason why it is a best buy because of the following:
1. It is has 4,286 sq. ft of living space and is in excellent condition.
2. It is one of two true penthouses in the building with its own private elevator.
3. The other true penthouse at 4,607 which is comparable it is listed at $ $4.98 million
4. The two true penthouses are on the top floor, 38. There is a double unit Penthouse on the 35th floor which has 5,359 square feet of living space. It is listed for $4.6 million.
5. Then there are two other units on the 35th floor one at 3,111 square feet, the other at 3,225 square feet listed at $2.55 million and $2.695 million respectively.
To find comparables that have sold in the pass year is very difficult. The only properties that come close were sold in late 2008 and early 2009. They were penthouses or luxury condos that sold on high floors. There were a total of four in all:
1. 1,981 square feet for $3.3 million
2. 1,981 square feet for $3.67 million
3. 2,222 square feet for $3.8 million
4. 2,574 square feet for 4.9 million
With these comparative results one can see why the $2.9 million example is considered a “Best Buy”. If you would like any more detail regarding this article or if you interested in viewing any of the properties please do not hesitate to me, Abron Toure 503 475 6872, Mahalo.
Abron Toure Passion, Performance, Persistence http://dos-n-donts.realtors.officelive.com Realtor Associate 503 475 6872 Cellular
1. It is has 4,286 sq. ft of living space and is in excellent condition.
2. It is one of two true penthouses in the building with its own private elevator.
3. The other true penthouse at 4,607 which is comparable it is listed at $ $4.98 million
4. The two true penthouses are on the top floor, 38. There is a double unit Penthouse on the 35th floor which has 5,359 square feet of living space. It is listed for $4.6 million.
5. Then there are two other units on the 35th floor one at 3,111 square feet, the other at 3,225 square feet listed at $2.55 million and $2.695 million respectively.
To find comparables that have sold in the pass year is very difficult. The only properties that come close were sold in late 2008 and early 2009. They were penthouses or luxury condos that sold on high floors. There were a total of four in all:
1. 1,981 square feet for $3.3 million
2. 1,981 square feet for $3.67 million
3. 2,222 square feet for $3.8 million
4. 2,574 square feet for 4.9 million
With these comparative results one can see why the $2.9 million example is considered a “Best Buy”. If you would like any more detail regarding this article or if you interested in viewing any of the properties please do not hesitate to me, Abron Toure 503 475 6872, Mahalo.
Abron Toure Passion, Performance, Persistence http://dos-n-donts.realtors.officelive.com Realtor Associate 503 475 6872 Cellular
Monday, October 5, 2009
The Hawaii Real Estate Market at A Glance
So, When Is It the BEST Time to Buy Real Estate in Hawaii?
Now!
Why Now?
For first time homebuyer's who want to take advantage of the tax credit up to $8000, you need to make an offer on a property and get your offer accepted so you can close by December 1st, 2009. To make this deadline, you'll need at least 45 days in escrow to close if you require financing.
Interest rates are still under 5% so your purchasing power is still MAXIMIZED!!
Home prices are still LOW vs prior years but are stabilizing with low inventories. As long as inventory levels remain low, the RATE of decrease in prices will continue to level.
FHA financing is doing some reorginazition of guidelines that will take effect in NOV and may be more stringent on qualifications for prospective buyers.
If you insist on waiting til we reach the absolute bottom of the market before buying, you'll only discover the bottom after it's already PASSED!!!
Buying on either side of the bottom of the price curve is ideal. The danger of waiting to buy at the absolute bottom of the market is that while you're WAITING for the BOTTOM of the MARKET in PRICES, INTEREST RATES may increase and REDUCE your PURCHASING POWER faster than prices DECLINE.
So, WHEN is it the BEST time to buy real estate in Hawaii?
NOW!
If you're ready to buy in the next 30 days, contact Dwight Ellis at dwighte@cbpacific.com or call me at 808 351-1507
Now!
Why Now?
For first time homebuyer's who want to take advantage of the tax credit up to $8000, you need to make an offer on a property and get your offer accepted so you can close by December 1st, 2009. To make this deadline, you'll need at least 45 days in escrow to close if you require financing.
Interest rates are still under 5% so your purchasing power is still MAXIMIZED!!
Home prices are still LOW vs prior years but are stabilizing with low inventories. As long as inventory levels remain low, the RATE of decrease in prices will continue to level.
FHA financing is doing some reorginazition of guidelines that will take effect in NOV and may be more stringent on qualifications for prospective buyers.
If you insist on waiting til we reach the absolute bottom of the market before buying, you'll only discover the bottom after it's already PASSED!!!
Buying on either side of the bottom of the price curve is ideal. The danger of waiting to buy at the absolute bottom of the market is that while you're WAITING for the BOTTOM of the MARKET in PRICES, INTEREST RATES may increase and REDUCE your PURCHASING POWER faster than prices DECLINE.
So, WHEN is it the BEST time to buy real estate in Hawaii?
NOW!
If you're ready to buy in the next 30 days, contact Dwight Ellis at dwighte@cbpacific.com or call me at 808 351-1507
Friday, October 2, 2009
A Master in Luxury Architecture!
Vladimir Ossipoff (1907–1998) won recognition as the “master of Hawaii modern architecture.”
Ossipoff's sub-tropical designs makes use of Hawaii's climate and trade winds, his open-plan spaces, and inside-outside characteristics makes use of the environment and he creates what's appropriate for a particular site.
Characteristically, Ossipoff homes are known for their strong roof lines, deep overhangs, dark woods, native stones and built-in cabinets and fixtures. He always took advantage of natural ventilation through huge sliding doors and windows that would open entire walls to the outside.
Famous private homes he designed include the Goodsill, Pauling and Liljestrand residences, as well as a Kahala home for the late Clare Boothe Luce that sold several years ago for $11.6 million. In the 1940s and 1950s, Ossipoff also designed hundreds of simple yet stylish homes for middle-class families moving out to the growing East Honolulu suburbs.
People take great pride in having an Ossipoff home and any hint of Ossipoff's hand in a home is a selling point for Realtors. It’s been said that an Ossipoff home on the market has brought up to 15 percent more than a similar home.
The only Ossipoff home currently on the market is a 5 bedroom, 5.5 bath home built in 1995 and remodeled in 2009 on the slopes of Diamond Head listed at $5,200,000. To view this home or for more information on other Ossipoff designs contact Mandy Berner, RA 808-286-5845, mandyb@cbpacific.com.
Ossipoff's sub-tropical designs makes use of Hawaii's climate and trade winds, his open-plan spaces, and inside-outside characteristics makes use of the environment and he creates what's appropriate for a particular site.
Characteristically, Ossipoff homes are known for their strong roof lines, deep overhangs, dark woods, native stones and built-in cabinets and fixtures. He always took advantage of natural ventilation through huge sliding doors and windows that would open entire walls to the outside.
Famous private homes he designed include the Goodsill, Pauling and Liljestrand residences, as well as a Kahala home for the late Clare Boothe Luce that sold several years ago for $11.6 million. In the 1940s and 1950s, Ossipoff also designed hundreds of simple yet stylish homes for middle-class families moving out to the growing East Honolulu suburbs.
People take great pride in having an Ossipoff home and any hint of Ossipoff's hand in a home is a selling point for Realtors. It’s been said that an Ossipoff home on the market has brought up to 15 percent more than a similar home.
The only Ossipoff home currently on the market is a 5 bedroom, 5.5 bath home built in 1995 and remodeled in 2009 on the slopes of Diamond Head listed at $5,200,000. To view this home or for more information on other Ossipoff designs contact Mandy Berner, RA 808-286-5845, mandyb@cbpacific.com.
Thursday, October 1, 2009
Why do lenders ask so many questions?
Lenders main objective is to make sure the individual is qualified prior to searching for a home. The main reason lenders ask so many questions upfront is because they want to make sure they have as much information as possible in order to know which loan programs the borrower may qualify for and is best for their unique financial situation.
Some of the questions lenders will ask during the pre-qualification process are:
Contact information: Contact phone number and emails
Personal information: name, address, birthday and social security number
Job Information: Who do you work for, what is your job function, how long have you worked there, how long have you been in this line of profession.
Income Information: What is your gross income?
Debt Information: What are your monthly debt obligations? Credit cards, car loan, personal loan, child support… etc.
Assets: How much do you have in your savings, checking, IRA, brokerage accounts, and cash?
Credit Scores: When was the last time you ran your credit report? How were the scores? Do you have any current or past delinquencies, any liens or bankruptcies?
Down Payment: How much do you plan to put down? Which bank account will money be drawn from? Will it be gift money?
Who else will be on the loan?
All these questions are important to a successful qualification of a loan. They allow the lender to see what potential red flags may come up. For example, cash is always a concern to lenders as it can not be documented. So if you have cash in a bank box, take it out and deposit it into your bank account (remember, it’ll have to be in your account for at least two months).
Good luck in your pre-qualification process. If you already have been pre-qualified and would like to get pre-qualified again, please contact me at 808-561-5943 or email me at lle@pacificaccessmortgage.com.
- Linda Le, Loan Officer, Pacific Access Mortgage
Some of the questions lenders will ask during the pre-qualification process are:
Contact information: Contact phone number and emails
Personal information: name, address, birthday and social security number
Job Information: Who do you work for, what is your job function, how long have you worked there, how long have you been in this line of profession.
Income Information: What is your gross income?
Debt Information: What are your monthly debt obligations? Credit cards, car loan, personal loan, child support… etc.
Assets: How much do you have in your savings, checking, IRA, brokerage accounts, and cash?
Credit Scores: When was the last time you ran your credit report? How were the scores? Do you have any current or past delinquencies, any liens or bankruptcies?
Down Payment: How much do you plan to put down? Which bank account will money be drawn from? Will it be gift money?
Who else will be on the loan?
All these questions are important to a successful qualification of a loan. They allow the lender to see what potential red flags may come up. For example, cash is always a concern to lenders as it can not be documented. So if you have cash in a bank box, take it out and deposit it into your bank account (remember, it’ll have to be in your account for at least two months).
Good luck in your pre-qualification process. If you already have been pre-qualified and would like to get pre-qualified again, please contact me at 808-561-5943 or email me at lle@pacificaccessmortgage.com.
- Linda Le, Loan Officer, Pacific Access Mortgage
Wednesday, September 30, 2009
Home Inspection 101
There are lots of things to be nervous about when you are buying your first home, and having to do a home inspection shouldn’t be one of them. You should definitely get a professional home inspector to do the inspection. He will go over the home to check for various things---
He’ll look at structural elements like the walls, foundation, floors, ceilings, and the roof.
He’ll check the plumbing. Do all the drains work properly? Do the toilets flush? How are the P-traps?
He’ll look at appliances. What is the condition of the washer and dryer? Does the dishwasher work well—he should run it through a cycle. What is the condition of the stove and refrigerator?
He’ll check all the electrical components like switches, plugs, circuit breakers, and he’ll look to see if the home is grounded properly, and he’ll make suggestions as to what to do if it isn’t.
Is there an attic to the home? The inspector will check the attic for its condition. Is there a basement? He will look at that as well.
He’ll go out into the yard, if there is one, and look at landscaping, outdoor lighting, fences, rock walls, sidewalks, etc.
Your home inspector will tell you if there are health and safety issues you need to be aware of, any damage to the roof that he can see, appliances that are malfunctioning, foundation problems, and moisture or drainage issues.
There may be some things that need repair. As the buyer, you should talk to your agent about this. Will you get a credit through your escrow? Or will the seller do the repairs? If the seller does the repairs, they need to be finished by the time you close on your home. And you need to make sure the repairs are done properly, so you will need to be sure to check those things on your final walk through before closing.
If you need more information on home inspection ideas, and what to look for, please be sure to call Tiare Dutcher at 808-753-5327.
He’ll look at structural elements like the walls, foundation, floors, ceilings, and the roof.
He’ll check the plumbing. Do all the drains work properly? Do the toilets flush? How are the P-traps?
He’ll look at appliances. What is the condition of the washer and dryer? Does the dishwasher work well—he should run it through a cycle. What is the condition of the stove and refrigerator?
He’ll check all the electrical components like switches, plugs, circuit breakers, and he’ll look to see if the home is grounded properly, and he’ll make suggestions as to what to do if it isn’t.
Is there an attic to the home? The inspector will check the attic for its condition. Is there a basement? He will look at that as well.
He’ll go out into the yard, if there is one, and look at landscaping, outdoor lighting, fences, rock walls, sidewalks, etc.
Your home inspector will tell you if there are health and safety issues you need to be aware of, any damage to the roof that he can see, appliances that are malfunctioning, foundation problems, and moisture or drainage issues.
There may be some things that need repair. As the buyer, you should talk to your agent about this. Will you get a credit through your escrow? Or will the seller do the repairs? If the seller does the repairs, they need to be finished by the time you close on your home. And you need to make sure the repairs are done properly, so you will need to be sure to check those things on your final walk through before closing.
If you need more information on home inspection ideas, and what to look for, please be sure to call Tiare Dutcher at 808-753-5327.
Tuesday, September 29, 2009
3 Ways to Determine If a Property is a Best Buy: Part III
1.) Property that yields a positive cash flow with minimal down payment typical for the area.2.) Property asking price is substantially below like kind homes that have sold within the last six months.3.) Property that is a quality structure and highly sought after in neighborhoods where the inventory for sale is relatively nonexistent and are selling at or below market value.This week the focus will be on topic number 3.) Properties, single family homes above average quality in highly sought after neighborhoods where the inventory for sale is relatively nonexistent and are selling below market value; or condos meeting the same quality standards where the inventory for sale is relatively nonexistent and are selling below market value.
For example 3 bed room condos are relatively in short supply in both the Waikiki and Kakaako area. For our best buy in this area my favorite building would be Koolani. Generally 3 bed rooms in this building sell for over a million dollars. Currently there are three 3 bedroom units on the market. They all come with two parking stalls. Unit 2609 boasts 1,392 square feet. It list at $949,000. Unit 3901 Boast 1,374 square feet and sells at $980,000. Finally there is Unit 1002 which boast 1,561 square feet and list at $1,195,000. Two units have sold in 2009. Unit 4409 at 1,393 square feet sold 3/3/09 for $1,040,000 and unit 2602 which boast 1,561 square feet sold 1/9/09 for $1,250,000. From this information unite 2609 would be the best buy of the three.
For single family homes an area that is very sought after where the inventory is in short supply is Aina Haina Beach. There are currently three properties on the market. Also since January of 2009 there has only been one sale. Although properties generally sell for well over $2,000,000 there is currently a 3 bedroom, 1,128 square foot unit is average condition selling for $859,000. The other two homes on the market are 3 bedrooms, one 2,152 square feet, average condition and a 5 bedroom, 3,731 square feet; they both list at $3,475,000. The one sale in this area was September 1st 2009. It was 5 bedroom home at 6,930 square feet which, sold for $5,500,000. The 3 bedroom at $859,000 would appear to be our best buy in this case. If you would like any help in identifying a best buy or if you are interested in viewing any of the listings mentioned in this article I can be reached on my cell 503 475 6872. Mahalo!
For example 3 bed room condos are relatively in short supply in both the Waikiki and Kakaako area. For our best buy in this area my favorite building would be Koolani. Generally 3 bed rooms in this building sell for over a million dollars. Currently there are three 3 bedroom units on the market. They all come with two parking stalls. Unit 2609 boasts 1,392 square feet. It list at $949,000. Unit 3901 Boast 1,374 square feet and sells at $980,000. Finally there is Unit 1002 which boast 1,561 square feet and list at $1,195,000. Two units have sold in 2009. Unit 4409 at 1,393 square feet sold 3/3/09 for $1,040,000 and unit 2602 which boast 1,561 square feet sold 1/9/09 for $1,250,000. From this information unite 2609 would be the best buy of the three.
For single family homes an area that is very sought after where the inventory is in short supply is Aina Haina Beach. There are currently three properties on the market. Also since January of 2009 there has only been one sale. Although properties generally sell for well over $2,000,000 there is currently a 3 bedroom, 1,128 square foot unit is average condition selling for $859,000. The other two homes on the market are 3 bedrooms, one 2,152 square feet, average condition and a 5 bedroom, 3,731 square feet; they both list at $3,475,000. The one sale in this area was September 1st 2009. It was 5 bedroom home at 6,930 square feet which, sold for $5,500,000. The 3 bedroom at $859,000 would appear to be our best buy in this case. If you would like any help in identifying a best buy or if you are interested in viewing any of the listings mentioned in this article I can be reached on my cell 503 475 6872. Mahalo!
Monday, September 28, 2009
Real Estate Market at a Glance
FHA REQUIREMENTS FOR LOANS ARE BEING INCREASED
As the housing market struggles nationally to gain ground and post postive growth, challenges and changes continue to create obstacles to achieving that growth. Once such challenge has recently been implemented with one of the bright lights in the home buyer process.
FHA insured loans have steadily grown as owner occupants have found the low down payment of 3.5% very attractive vs other types of loans.
However, the requirements for Borrowers to qualify for FHA insured loans are being changed.
Due to the increase of FHA insured loans increasing from 3% of all mortgages issued to nearly 25% today and the default rate increasing from 5.4% to 8%, the FHA is running out of money. The recent shortfall of FHA funds to below the 2% threshold required by Congress requires implementing changes in their lending guidelines that will effect the ability of Borrower's to qualify for loans.
For Borrowers, the following changes are anticipated:
Appraisal policies will be based on the Fannie Mae and Freddie Mac
requirements. This has made the 30 day close for a purchase requiring financing virtually obsolete.
Income documentation will be required for all types of loans eliminating the streamlined reduced documentation previously available for refinances
Higher mimimum credit scores will be required which will reduce the pool of qualified Borrowers
A proposed increase in the minimum down payment on purchase transactions could also affect the pool of qualified Borrowers.*
Also, the list of FHA approved condos will be modified to delete those condos approved BEFORE 10/1/08. This will be effective 11/2/09. These unapproved condos will need to be resubmitted for FHA approval. The procedures for this process are still to be determined.
This could have an affect on the number of buildings available for FHA loans and options for Buyers. **
Thus, the housing market recovery period will likely face further delay caused by these additional government regulations.
If you're a prospective Buyer and want to take advantage of the $8000 Tax Credit for First Time Buyers , you should be sure to discuss your financing needs with a Knowledgable lender who is familiar with these changes and how they can affect you.
If you'd like a REFERRAL to a lender with this knowledge and expertise, contact Dwight Ellis at 808 351-1507.
* Info from Alan Zukerkorn, President of Hawaii Mortgage Co, Inc
** Info from Darren Wong, Loan Officer, Pacific Access Mortgage.
Dwight M EllisRealtor Associate
“Your Hawaiian Real Estate Connection! “Designations:
Graduate Realtor Institute (GRI)
Certified Home Marketing Specialist (CHMS)
Certified Mobility Relocation Specialist (CMRS)
Certified Affinity Relocation Specialist (CMAS)
E-Pro
NumbersMobile 808-351-1507Office 808-944-1888Fax 808-748-8024Email
DwightE@CBPacific.com
Website www.CBPacific.com/DwightECOLDWELL BANKERPACIFIC PROPERTIES1909 Ala Wai Blvd, Ste C-2
Honolulu, HI 96815
As the housing market struggles nationally to gain ground and post postive growth, challenges and changes continue to create obstacles to achieving that growth. Once such challenge has recently been implemented with one of the bright lights in the home buyer process.
FHA insured loans have steadily grown as owner occupants have found the low down payment of 3.5% very attractive vs other types of loans.
However, the requirements for Borrowers to qualify for FHA insured loans are being changed.
Due to the increase of FHA insured loans increasing from 3% of all mortgages issued to nearly 25% today and the default rate increasing from 5.4% to 8%, the FHA is running out of money. The recent shortfall of FHA funds to below the 2% threshold required by Congress requires implementing changes in their lending guidelines that will effect the ability of Borrower's to qualify for loans.
For Borrowers, the following changes are anticipated:
Appraisal policies will be based on the Fannie Mae and Freddie Mac
requirements. This has made the 30 day close for a purchase requiring financing virtually obsolete.
Income documentation will be required for all types of loans eliminating the streamlined reduced documentation previously available for refinances
Higher mimimum credit scores will be required which will reduce the pool of qualified Borrowers
A proposed increase in the minimum down payment on purchase transactions could also affect the pool of qualified Borrowers.*
Also, the list of FHA approved condos will be modified to delete those condos approved BEFORE 10/1/08. This will be effective 11/2/09. These unapproved condos will need to be resubmitted for FHA approval. The procedures for this process are still to be determined.
This could have an affect on the number of buildings available for FHA loans and options for Buyers. **
Thus, the housing market recovery period will likely face further delay caused by these additional government regulations.
If you're a prospective Buyer and want to take advantage of the $8000 Tax Credit for First Time Buyers , you should be sure to discuss your financing needs with a Knowledgable lender who is familiar with these changes and how they can affect you.
If you'd like a REFERRAL to a lender with this knowledge and expertise, contact Dwight Ellis at 808 351-1507.
* Info from Alan Zukerkorn, President of Hawaii Mortgage Co, Inc
** Info from Darren Wong, Loan Officer, Pacific Access Mortgage.
Dwight M EllisRealtor Associate
“Your Hawaiian Real Estate Connection! “Designations:
Graduate Realtor Institute (GRI)
Certified Home Marketing Specialist (CHMS)
Certified Mobility Relocation Specialist (CMRS)
Certified Affinity Relocation Specialist (CMAS)
E-Pro
NumbersMobile 808-351-1507Office 808-944-1888Fax 808-748-8024Email
DwightE@CBPacific.com
Website www.CBPacific.com/DwightECOLDWELL BANKERPACIFIC PROPERTIES1909 Ala Wai Blvd, Ste C-2
Honolulu, HI 96815
Saturday, September 26, 2009
Wow, Bank Owned Property (REO) Available on the North Shore!
Coldwell Banker Pacific Properties has one of the largest and oldest REO organizations on Oahu. Periodically, this blog will highlight bank owned properties with unique opportunities such as the one indicated below:
59-366 Pupukea Road, located in Haleiwa, near the surfing capital of the world, is a residence with 3 bedrooms. The home was built in 2006 on approximately 1 acre. Zoned agricultural, it’s an ideal spot for animal lovers since there are separate structures that formerly served as kennels and space for horses. Listed at $910,000 courtesy of Patrick De Silva, Realtor Associate.
Contact me to represent you on the purchase of this property or if you are interesting in obtaining information on other REO’s or foreclosed homes.
Rosemary Smith, RA
(808) 271-5220 Cellular
rosemarys@cbpacific.com
Licensed in Hawaii and New York
59-366 Pupukea Road, located in Haleiwa, near the surfing capital of the world, is a residence with 3 bedrooms. The home was built in 2006 on approximately 1 acre. Zoned agricultural, it’s an ideal spot for animal lovers since there are separate structures that formerly served as kennels and space for horses. Listed at $910,000 courtesy of Patrick De Silva, Realtor Associate.
Contact me to represent you on the purchase of this property or if you are interesting in obtaining information on other REO’s or foreclosed homes.
Rosemary Smith, RA
(808) 271-5220 Cellular
rosemarys@cbpacific.com
Licensed in Hawaii and New York
Friday, September 25, 2009
Don’t qualify for the loan yourself? There is hope…
FHA loan's have a number of advantages such as low down payment for 1st time homebuyers. It is also one of the only loan programs that allow non occupying co-borrowers income to be used in qualifying for the loan. Remember the buyer stills needs to be gainfully employed and have good credit.
Non-Occupying Co-Borrowers:
A co-borrower who will not occupy the property, but is being added to the loan application to strengthen the profile is permitted. Maximum financing is available under the following:
The Co-Borrower must be a close family member or demonstrate a long-standing family relationship with the primary Borrower. If no such relationship can be verified, the LTV cannot exceed 75%.
The subject property is a single family detached, PUD, or an approved condo unit.
Co-Borrower must have a primary residence in the United States of America.
A complete credit underwriting analysis will be performed for the non-occupant co-borrower. The income, assets and debt will be included and will be weighed equally with the borrower.
Remember, when purchasing a home using an FHA loan, the condo must be approved be an FHA approved condo as well as the current owner occupant ratio must be 51%.
Non-Occupying Co-Borrowers:
A co-borrower who will not occupy the property, but is being added to the loan application to strengthen the profile is permitted. Maximum financing is available under the following:
The Co-Borrower must be a close family member or demonstrate a long-standing family relationship with the primary Borrower. If no such relationship can be verified, the LTV cannot exceed 75%.
The subject property is a single family detached, PUD, or an approved condo unit.
Co-Borrower must have a primary residence in the United States of America.
A complete credit underwriting analysis will be performed for the non-occupant co-borrower. The income, assets and debt will be included and will be weighed equally with the borrower.
Remember, when purchasing a home using an FHA loan, the condo must be approved be an FHA approved condo as well as the current owner occupant ratio must be 51%.
Lanikai Beachside Balinese Style
I saw a home that stuck in my mind this past week because of it's uniquen finishes and design.
Breathtaking home designed by Peter Vincent is currently for sale for $5,995,000.
Custom built in 2003, the goal of this home was to design a custom residence to fit within the scale and context of Lanikai while fulfilling the desire for a Balinese style home favorable to an active lifestyle and tropical indoor/outdoor living. The house is characterized by custom workmanship throughout. Several notable amenities include a smart house automation system, an outdoor spa, a large saltwater aquarium, and a “secret door.” A permitted seawall with stairwell provides direct access to the crystal clear blue water of Lanikai. Interior finishes include exotic hardwoods, a theatre room, and a top of the line kitchen.
For more information or pictures of this property or any other Peter Vincent masterpiece call me, Mandy Berner, RA... 808-286-5845.
Breathtaking home designed by Peter Vincent is currently for sale for $5,995,000.
Custom built in 2003, the goal of this home was to design a custom residence to fit within the scale and context of Lanikai while fulfilling the desire for a Balinese style home favorable to an active lifestyle and tropical indoor/outdoor living. The house is characterized by custom workmanship throughout. Several notable amenities include a smart house automation system, an outdoor spa, a large saltwater aquarium, and a “secret door.” A permitted seawall with stairwell provides direct access to the crystal clear blue water of Lanikai. Interior finishes include exotic hardwoods, a theatre room, and a top of the line kitchen.
For more information or pictures of this property or any other Peter Vincent masterpiece call me, Mandy Berner, RA... 808-286-5845.
Wednesday, September 23, 2009
Knock Out The Nerves When Buying For The First Time!
Is this the first time you are buying a home? Are you nervous about such a big step? Here is some information that will calm your nerves a bit.
This is a GREAT time to buy. Maybe the best buying situation in history. Interest rates are incredibly low (well below 5%) and the buyer has the negotiation leverage that will help you get that perfect home at the right price. However, there are still several things you need to know about buying a home.
First, figure out how much you can afford. Your credit history, income, debt, down payment (if any) and the current interest rate will help you determine what you qualify for. Your lifestyle will help you determine how much of a monthly payment you can live with. A lender can give you an estimate of what price range you should be looking at just by talking to them for 5 minutes. The lender will also give you an idea of how much money you will need in your bank account to complete the transaction.
Second, there are several programs that can help someone like you who is buying their first home. FHA offers programs where you only need to put down 3.5% of the purchase price. If you qualify for a VA loan you can finance 100% of the price. Same goes for USDA loans. That's right, no money down is still around.
Third, Find a professional real estate agent to help you find your home. You can locate agents online and then interview them over the phone or in person. It is very important that you interview agents before you choose the one for you. The level of service provided varies tremendously from agent to agent. The best agents will help determine the right home for you, negotiate the best price/terms and facilitate a smooth transaction so you don't have to worry about the purchase.
Fourth, when you find a home you like, jump to it. There number of homes for sale has dwindled over the past 4 years. Thus, we find that we are usually competing with other buyers when we find the right home. Being decisive helps in getting you into your new home. Otherwise, your search could last for months and even years.
If you need someone to help you through this first time home buying process, call Tiare Dutcher 808-753-5327.
This is a GREAT time to buy. Maybe the best buying situation in history. Interest rates are incredibly low (well below 5%) and the buyer has the negotiation leverage that will help you get that perfect home at the right price. However, there are still several things you need to know about buying a home.
First, figure out how much you can afford. Your credit history, income, debt, down payment (if any) and the current interest rate will help you determine what you qualify for. Your lifestyle will help you determine how much of a monthly payment you can live with. A lender can give you an estimate of what price range you should be looking at just by talking to them for 5 minutes. The lender will also give you an idea of how much money you will need in your bank account to complete the transaction.
Second, there are several programs that can help someone like you who is buying their first home. FHA offers programs where you only need to put down 3.5% of the purchase price. If you qualify for a VA loan you can finance 100% of the price. Same goes for USDA loans. That's right, no money down is still around.
Third, Find a professional real estate agent to help you find your home. You can locate agents online and then interview them over the phone or in person. It is very important that you interview agents before you choose the one for you. The level of service provided varies tremendously from agent to agent. The best agents will help determine the right home for you, negotiate the best price/terms and facilitate a smooth transaction so you don't have to worry about the purchase.
Fourth, when you find a home you like, jump to it. There number of homes for sale has dwindled over the past 4 years. Thus, we find that we are usually competing with other buyers when we find the right home. Being decisive helps in getting you into your new home. Otherwise, your search could last for months and even years.
If you need someone to help you through this first time home buying process, call Tiare Dutcher 808-753-5327.
Monday, September 21, 2009
Market at A Glance
HIGH DEMAND NEIGHBORHOODS
In high demand neighborhoods where the months of remaining inventory is under 5 months, Seller's have a decided advantage over Buyers in getting their price. Months Remaining Inventory defines how long it would take to sell all of the homes in the market given the current rate of sales and number of properties for sale.
The strategy for purchasing a home in these types of neighborhoods is more focused on the financial strength of the Buyer and being able to act QUICKLY when a property that fits their price range and needs comes on the market. Their Realtor needs to keep them abreast of current inventory and have them ready to make their strongest offer QUICKLY, to compete with other Buyers!
Strong offers are those that are all CASH or with LARGE DOWN PAYMENTS and quick closing times. Between 30 days for cash and 45 days for conventional financing are good time parameters.
Having a PREAPPROVAL letter or VERIFICATION of FUNDS statement ready and included with your offer is also important to set your offer apart from others.
Cover letters introducing you to the Seller and offering a personal perspective about your family and of why you like the home and neighborhood, etc, can also have a positive effect in setting your offer apart from other Buyers.
Finally, your Realtor should find out as much information about the Seller and their motivation for selling as well as any other info that can be useful in negotiating a Satisfactory offer and WIN WIN situation for both parties.
If you plan to compete for a home in these High Demand Neighborhoods, it's important to keep your FICO score up and not make any late payments or take on any major purchases during this time period. Any previous delinquencies or issues should be resolved expeditiously to insure the strongest possible credit rating..
Some High Demand Neighborhoods in August were as follows:
Single Family Homes:*
North Shore 3.2 months
Windward Coast 3.4
Makaha-Nanakuli 3.4
Aina Haina-Kuliouou 4.3
Moanalua-Kalihi 4.7
Pearl City-Aiea 4.9
Condos:
Windward Coast 2.5 months*
North Shore 2.8
Waipahu 3.1
Kaneohe 3.7
Makiki-Moiliili 3.7
Ewa Plain 4.2
Moanalua-Salt Lake 4.3
Kapahulu-Kuliouou 4.7
Identifying these Best Buys in High Demand Neighborhoods and negotiating a strong offer for acceptance from a Seller requires the assistance of a knowledgable and diligent Realtor.
You can contact me,
Dwight Ellis, "Your Hawaiian Real Estate Connection"
at 808 351-1507.
*Stats provided by Kalama Kim, AOM Waikiki Office, Coldwell Banker Pacific Properties.
In high demand neighborhoods where the months of remaining inventory is under 5 months, Seller's have a decided advantage over Buyers in getting their price. Months Remaining Inventory defines how long it would take to sell all of the homes in the market given the current rate of sales and number of properties for sale.
The strategy for purchasing a home in these types of neighborhoods is more focused on the financial strength of the Buyer and being able to act QUICKLY when a property that fits their price range and needs comes on the market. Their Realtor needs to keep them abreast of current inventory and have them ready to make their strongest offer QUICKLY, to compete with other Buyers!
Strong offers are those that are all CASH or with LARGE DOWN PAYMENTS and quick closing times. Between 30 days for cash and 45 days for conventional financing are good time parameters.
Having a PREAPPROVAL letter or VERIFICATION of FUNDS statement ready and included with your offer is also important to set your offer apart from others.
Cover letters introducing you to the Seller and offering a personal perspective about your family and of why you like the home and neighborhood, etc, can also have a positive effect in setting your offer apart from other Buyers.
Finally, your Realtor should find out as much information about the Seller and their motivation for selling as well as any other info that can be useful in negotiating a Satisfactory offer and WIN WIN situation for both parties.
If you plan to compete for a home in these High Demand Neighborhoods, it's important to keep your FICO score up and not make any late payments or take on any major purchases during this time period. Any previous delinquencies or issues should be resolved expeditiously to insure the strongest possible credit rating..
Some High Demand Neighborhoods in August were as follows:
Single Family Homes:*
North Shore 3.2 months
Windward Coast 3.4
Makaha-Nanakuli 3.4
Aina Haina-Kuliouou 4.3
Moanalua-Kalihi 4.7
Pearl City-Aiea 4.9
Condos:
Windward Coast 2.5 months*
North Shore 2.8
Waipahu 3.1
Kaneohe 3.7
Makiki-Moiliili 3.7
Ewa Plain 4.2
Moanalua-Salt Lake 4.3
Kapahulu-Kuliouou 4.7
Identifying these Best Buys in High Demand Neighborhoods and negotiating a strong offer for acceptance from a Seller requires the assistance of a knowledgable and diligent Realtor.
You can contact me,
Dwight Ellis, "Your Hawaiian Real Estate Connection"
at 808 351-1507.
*Stats provided by Kalama Kim, AOM Waikiki Office, Coldwell Banker Pacific Properties.
Saturday, September 19, 2009
Why Not Consider Investing in Hawaii Commercial Real Estate?
Have you ever contemplated owning/expanding an existing business or possibly becoming a landlord of a multi-family complex in Hawaii?
Prior to last year's economic downturn, Hawaii commercial properties were often unobtainable for many entrepreneurs.
Today’s changing economic climate has created great opportunities. Here are just a few:
· 3,936 s.f. Air conditioned warehouse with showroom; located in the Kalihi neighborhood listed at $1,285,000
· Centrally located on Kapiolani Blvd a .49 acres parcel zoned BMX-3 with the possibility of a residential high rise listed at $5,988,877
· Fee simple 4,204 s.f. multi-family home in Kalihi listed at $1,400,000
Contact me at (808) 271-5220 to obtain information on these or other commercial properties listed with our affiliate, Coldwell Banker Commercial Pacific Properties.
Rosemary Smith, RA
Prior to last year's economic downturn, Hawaii commercial properties were often unobtainable for many entrepreneurs.
Today’s changing economic climate has created great opportunities. Here are just a few:
· 3,936 s.f. Air conditioned warehouse with showroom; located in the Kalihi neighborhood listed at $1,285,000
· Centrally located on Kapiolani Blvd a .49 acres parcel zoned BMX-3 with the possibility of a residential high rise listed at $5,988,877
· Fee simple 4,204 s.f. multi-family home in Kalihi listed at $1,400,000
Contact me at (808) 271-5220 to obtain information on these or other commercial properties listed with our affiliate, Coldwell Banker Commercial Pacific Properties.
Rosemary Smith, RA
Friday, September 18, 2009
Luxury Properties are on the Move! Who is Buying Them?
The return of the economy has spurned on the luxury market.
In 2009 there have been 36 properties sold for $2,000,000 or more. These properties were located in various areas of the island from the beaches of Lanikai, Kailua, and the North Shore to the hillsides of Maunawili, Tantalus, and Hawaii Loa Ridge. Who are the buyers for these luxury properties?
3,200+ sq. ft. 4 bed/3 bath home in the Kahala area ($2,750,000) was purchased by a retired gentleman from Beverly Hills who also purchased a 3,900+ sq. ft. 3 bed/3 bath in the Kahala area ($2,600,000) because he liked the setting better.
5,500+ sq. ft. 5 bed/4.5 bath home in the Tantalus area ($2,990,000) was purchased by a gentleman from the East Coast who does a lot of business in Japan and Hawaii was the perfect “stop over” destination for a 2nd home. What he liked about the home was the space and the views and felt it was the best value.
2,800+ sq. ft. 3 bed/2 bath home in the Niu Beach area ($2,650,000) was purchased by siblings from different areas as a vacation home as they liked the oceanfront location as well as the privacy and thought the property was the best value at the time.
5,200+ sq. ft. 6 bed/6.5 bath home in Black Point ($3,625,000) was purchased by a local couple who had always wanted a home developed by Tom Nicholson.
6,900+ sq. ft. 5 bed/6.5 bath home in the Aina Haina area ($5,500,000) was purchased by an Asian Corporation.
4,700+ sq. ft. 6 bed/6 bath in the Beachside area ($7,100,000) was purchased by a developer from the mainland who bought as a second home. The same developer also bought a home in Diamond Head which he is restoring.
2,700+ sq. ft. 6 bed/4 bath in Lanikai ($3,500,000) was purchased by a retired writer from Los Angeles.
4,200+ sq. ft. 6 bed/4.5 bath home in Diamond Head was purchased by a commercial developer from the mainland who is fixing up the home to use as a vacation home.
2,900 (approx.) sq. ft. 3 bed/3 bath home in Koko Kai ($2,100,000) was purchased by a local family who wanted a single level home with a view in Hawaii Kai.
4,300+ sq. ft. 4 bed/4.5 bath home in Black Point ($5,200,000) was purchased by an off-shore investor.
If you are looking to put your luxury home on the market and need to know who to target to get your luxury property sold, call me today… 808-286-5845
- Mandy Berner, RA
In 2009 there have been 36 properties sold for $2,000,000 or more. These properties were located in various areas of the island from the beaches of Lanikai, Kailua, and the North Shore to the hillsides of Maunawili, Tantalus, and Hawaii Loa Ridge. Who are the buyers for these luxury properties?
3,200+ sq. ft. 4 bed/3 bath home in the Kahala area ($2,750,000) was purchased by a retired gentleman from Beverly Hills who also purchased a 3,900+ sq. ft. 3 bed/3 bath in the Kahala area ($2,600,000) because he liked the setting better.
5,500+ sq. ft. 5 bed/4.5 bath home in the Tantalus area ($2,990,000) was purchased by a gentleman from the East Coast who does a lot of business in Japan and Hawaii was the perfect “stop over” destination for a 2nd home. What he liked about the home was the space and the views and felt it was the best value.
2,800+ sq. ft. 3 bed/2 bath home in the Niu Beach area ($2,650,000) was purchased by siblings from different areas as a vacation home as they liked the oceanfront location as well as the privacy and thought the property was the best value at the time.
5,200+ sq. ft. 6 bed/6.5 bath home in Black Point ($3,625,000) was purchased by a local couple who had always wanted a home developed by Tom Nicholson.
6,900+ sq. ft. 5 bed/6.5 bath home in the Aina Haina area ($5,500,000) was purchased by an Asian Corporation.
4,700+ sq. ft. 6 bed/6 bath in the Beachside area ($7,100,000) was purchased by a developer from the mainland who bought as a second home. The same developer also bought a home in Diamond Head which he is restoring.
2,700+ sq. ft. 6 bed/4 bath in Lanikai ($3,500,000) was purchased by a retired writer from Los Angeles.
4,200+ sq. ft. 6 bed/4.5 bath home in Diamond Head was purchased by a commercial developer from the mainland who is fixing up the home to use as a vacation home.
2,900 (approx.) sq. ft. 3 bed/3 bath home in Koko Kai ($2,100,000) was purchased by a local family who wanted a single level home with a view in Hawaii Kai.
4,300+ sq. ft. 4 bed/4.5 bath home in Black Point ($5,200,000) was purchased by an off-shore investor.
If you are looking to put your luxury home on the market and need to know who to target to get your luxury property sold, call me today… 808-286-5845
- Mandy Berner, RA
Financing Tip of the Week
Government Loans (VA, FHA & USDA) have been become very popular in today’s market due to the low down payment options.
Please keep the following in mind when previewing properties for these types of loan programs:
All appliances (Stove, Refrigerator & Sink) need to be properly installed and in working condition.
All repairs and damages notated on the appraisal report will need to be completed prior to Final Loan Approval. - Linda Le, Pacific Access Mortgage
Please keep the following in mind when previewing properties for these types of loan programs:
All appliances (Stove, Refrigerator & Sink) need to be properly installed and in working condition.
All repairs and damages notated on the appraisal report will need to be completed prior to Final Loan Approval. - Linda Le, Pacific Access Mortgage
Thursday, September 17, 2009
The Foreclosure and Short Sale Hype
Every buyer in today's market seems to have a mantra. Let me see the foreclosures first!
They may have a point. Properties that are in the foreclosure process or have been foreclosed upon can many times be purchased at a bargain.
Properties in the foreclosure process which are on the market for sale are usually short sale listings. Short sales occur when the purchase price of the property will fall short of the oustanding liens on the property (like a mortgage) and the costs associated with the sale. In these situations, the lien holders will be asked to release their lien allowing the sale to occur. Since the seller is in a "distressed" situation they are willing to sell the property at below market price to find a buyer quickly. The lender may approve the short sale because it is less costly than conducting a foreclosure and rehabilitating the property back to health after the foreclosure occurs. What's the catch? Short Sale Buyers need to be very patient and accomodating as short sales take 4 months to a year to complete if they go through at all. Less than 20% of the short sale properties on the market actually sell. Additionally, since the seller does not have any money the buyer is usually asked to pay for some of the escrow expenses (ie Termite Inspection) which they usually would not pay under normal sale circumstances.
A Foreclosed property has already been seized by the lien holder and has been placed on the market to sell within 30 days. Unlike short sales, these properties can be sold quickly. The lien holder who now owns the property is motivated to sell quickly at an attractive price because they need cash fast because of the financial struggles facing financial institutions. Addtionally, they do not want to follow the market down by pricing at or above the market. Therefore, the buyers benefit from good pricing and a good value buy.
For a free list of foreclosures in your preferred area, contact one of our columnists today.
-Kalama Kim, Realtor, BIC
Coldwell Banker Pacific Properties
They may have a point. Properties that are in the foreclosure process or have been foreclosed upon can many times be purchased at a bargain.
Properties in the foreclosure process which are on the market for sale are usually short sale listings. Short sales occur when the purchase price of the property will fall short of the oustanding liens on the property (like a mortgage) and the costs associated with the sale. In these situations, the lien holders will be asked to release their lien allowing the sale to occur. Since the seller is in a "distressed" situation they are willing to sell the property at below market price to find a buyer quickly. The lender may approve the short sale because it is less costly than conducting a foreclosure and rehabilitating the property back to health after the foreclosure occurs. What's the catch? Short Sale Buyers need to be very patient and accomodating as short sales take 4 months to a year to complete if they go through at all. Less than 20% of the short sale properties on the market actually sell. Additionally, since the seller does not have any money the buyer is usually asked to pay for some of the escrow expenses (ie Termite Inspection) which they usually would not pay under normal sale circumstances.
A Foreclosed property has already been seized by the lien holder and has been placed on the market to sell within 30 days. Unlike short sales, these properties can be sold quickly. The lien holder who now owns the property is motivated to sell quickly at an attractive price because they need cash fast because of the financial struggles facing financial institutions. Addtionally, they do not want to follow the market down by pricing at or above the market. Therefore, the buyers benefit from good pricing and a good value buy.
For a free list of foreclosures in your preferred area, contact one of our columnists today.
-Kalama Kim, Realtor, BIC
Coldwell Banker Pacific Properties
Wednesday, September 16, 2009
Attention First Time Homebuyers! The Clock is Ticking!
If you are a first time home buyer, you are helping the US Economy get back on track... In July, first time home buyers were responsible for one third of all home purchases.
The $8000 federal tax credit was a primary motivation to buy a home for almost 11% of buyers, according to Realtor.com.
The deadline to buy that home is fast approaching. Only 11 weeks left to get your property closed, if you want to take advantage of that $8000 tax credit. It takes approximately 45 to 60 days to close a property once the offer has been accepted, and sometimes, that acceptance process can take a week or so.
Ask yourself some questions:
Do you know what area you want to live in? This will help eliminate many properties if you know WHERE you want to live.
Have you pre-qualified yourself with a bank or mortgage lender so you know how much you can afford to spend on a property? Now, today, is the time to call that lender. They can tell you in a short period of time what you can afford to purchase.
Do you have money in the bank for down payment or closing costs? There are still 100% financing programs for those with credit at or above 720. There are also FHA, VA, USDA, and other government loan programs. In most cases, you will still need to provide your own finances for closing costs.
Please call a realtor today if you need help with prequalification, talking about different areas in which to live, and the whole purchase process. Call now! Buy now!
-Tiare Dutcher, RA
Coldwell Banker Pacific Properties
The $8000 federal tax credit was a primary motivation to buy a home for almost 11% of buyers, according to Realtor.com.
The deadline to buy that home is fast approaching. Only 11 weeks left to get your property closed, if you want to take advantage of that $8000 tax credit. It takes approximately 45 to 60 days to close a property once the offer has been accepted, and sometimes, that acceptance process can take a week or so.
Ask yourself some questions:
Do you know what area you want to live in? This will help eliminate many properties if you know WHERE you want to live.
Have you pre-qualified yourself with a bank or mortgage lender so you know how much you can afford to spend on a property? Now, today, is the time to call that lender. They can tell you in a short period of time what you can afford to purchase.
Do you have money in the bank for down payment or closing costs? There are still 100% financing programs for those with credit at or above 720. There are also FHA, VA, USDA, and other government loan programs. In most cases, you will still need to provide your own finances for closing costs.
Please call a realtor today if you need help with prequalification, talking about different areas in which to live, and the whole purchase process. Call now! Buy now!
-Tiare Dutcher, RA
Coldwell Banker Pacific Properties
Tuesday, September 15, 2009
Best Buy Properties
There are three ways to determine if a property is a best buy:1.) Property that yields a positive cash flow with minimal down payment typical for the area.2.) Property asking price is substantially below like kind homes that have sold within the last six months.3.) Property that is a quality structure and highly sought after in neighborhoods where the inventory for sale is relatively nonexistent and are selling at or below market value.This week the focus will be on topic number 2.) Properties where the asking price is substantially below like homes that have sold within the last six months. According to the Honolulu Board of Realtors the average price of a single family home on Oahu has dropped 16.2%. While the average price for a condo on Oahu has dropped 11.1%. This means that condos that are in better than average condition and are selling below 11.1% may satisfy the best buy criteria. For example, take a condo, one bedroom, unit-3608, Villa on Eaton Square, 582 square feet. It sold for $330,000 in March of 2008, Compare that with unit-3607, Villa on Eaton Square, 681 square feet selling on the same floor today for $310,000. At first glance this only appears to be about a 6.5% drop in value, making it a so-so best buy. However upon closer examination when the difference in square footage is taken into account the picture improves dramatically. For example, the cost per square foot of the unit sold in the 2008 is $567.01. While the cost per square foot of the unit currently for sale is $455.21. This reflects a 24.6% drop in price over the one year period which now solidly meets the best buy criteria of being substantially below market value. There are not many units available for sale in this building and there is a strong possibility a value of this type will not last long. If you are interested in viewing this unit I can be reached on my cell 503 475 6872. Mahalo!
Monday, September 14, 2009
Market At A Glance
In Search of Neighborhoods With Deals For Buyers
As the months of inventory continues to increase in various neighborhoods around the island, opportunities present themselves to Buyers looking for properties with Sellers who are MOTIVATED and willing to negotiate their sales price. In August, some of these neighborhoods were the following:
SINGLE FAMILY HOMES:
Neighborhoods: Months of Inventory Remaining:*
Waipahu 10.1
Waialea-Kahala 10.2
Makakilo 12.0
Ewa Plain 14.0
Kaneohe 14.6
Wahiawa 24.6
CONDOMINIUMS:
Neighborhoods: Months of Inventory Remaining:*
Mililani 9.7
Makaha-Nanakuli 11.2
Kailua-Waimanalo 19.0
Makakilo 21.2
Downtown-Nuuanu 45.0
Generally, when months of inventory increase to 9 months or more, Sellers tend to be more receptive to negotiating prices to sell their homes. This is especially true of homes in these neighborhoods with Days on Market in excess of 90 days.
These Best Buys are available for Buyers who work with diligent ahd knowledgable Realtors. Email me for more info if you would like this kind of assistance.
-Dwight Ellis, RA
*Stats courtesy of Kalama Kim, AOM Waikiki CBPP
As the months of inventory continues to increase in various neighborhoods around the island, opportunities present themselves to Buyers looking for properties with Sellers who are MOTIVATED and willing to negotiate their sales price. In August, some of these neighborhoods were the following:
SINGLE FAMILY HOMES:
Neighborhoods: Months of Inventory Remaining:*
Waipahu 10.1
Waialea-Kahala 10.2
Makakilo 12.0
Ewa Plain 14.0
Kaneohe 14.6
Wahiawa 24.6
CONDOMINIUMS:
Neighborhoods: Months of Inventory Remaining:*
Mililani 9.7
Makaha-Nanakuli 11.2
Kailua-Waimanalo 19.0
Makakilo 21.2
Downtown-Nuuanu 45.0
Generally, when months of inventory increase to 9 months or more, Sellers tend to be more receptive to negotiating prices to sell their homes. This is especially true of homes in these neighborhoods with Days on Market in excess of 90 days.
These Best Buys are available for Buyers who work with diligent ahd knowledgable Realtors. Email me for more info if you would like this kind of assistance.
-Dwight Ellis, RA
*Stats courtesy of Kalama Kim, AOM Waikiki CBPP
Saturday, September 12, 2009
Investors Forum - You Too Can Own a Piece of Paradise!
You too can own a piece of paradise! Here are a few ways:
Have a property in Florida, California or Nevada that you’re considering selling? Why not take advantage of the IRS tax code “1031” to purchase a piece of paradise as part of the exchange. There are excellent opportunities whether you are seeking a multi-million dollar beach front home or a condo hotel a.k.a. “condotel” for less than $100,000.
If you are looking for a deal why not consider the 200 single family short sale homes ranging from as low as $100,000 to $1,967,000.
In the market for a Waikiki 4,286 s.f. Penthouse that boasts a spacious lanai/balcony with ocean and mountain views. Well it’s a short sale listed at $2,900,000.
Coldwell Banker Pacific Properties handles the largest number of REO, Bank Owned properties in the state of Hawaii.
Tune in to this blog for a list of upcoming properties
Rosemary Smith, RA
Have a property in Florida, California or Nevada that you’re considering selling? Why not take advantage of the IRS tax code “1031” to purchase a piece of paradise as part of the exchange. There are excellent opportunities whether you are seeking a multi-million dollar beach front home or a condo hotel a.k.a. “condotel” for less than $100,000.
If you are looking for a deal why not consider the 200 single family short sale homes ranging from as low as $100,000 to $1,967,000.
In the market for a Waikiki 4,286 s.f. Penthouse that boasts a spacious lanai/balcony with ocean and mountain views. Well it’s a short sale listed at $2,900,000.
Coldwell Banker Pacific Properties handles the largest number of REO, Bank Owned properties in the state of Hawaii.
Tune in to this blog for a list of upcoming properties
Rosemary Smith, RA
Friday, September 11, 2009
Luxury Market – A Glimpse of the Light at the End of the Tunnel
The Shock felt around the world on September 15th, 2008 shook our Luxury Market to it’s core as Lehman Brothers collapsed and the stock market tumbled. October 2008 was said to be the worst month in the stock market in 21 years. Massive amounts of money was lost on paper which resulted in the affluent buyers leaving the luxury market. Luxury home sales on the island dropped by 62.5% in one month and remained at that level through November also.
Fast forward to August 2009. The stock market is on it’s way up again as it saw it’s 5th consecutive day of gains climbing over 9,500 and the press is reporting the country is now out of recession. In the luxury real estate market the dust has settled and offers are beginning to fly in. During the first 10 days of September we have already seen 5 accepted offers on listings over $2,500,000 which is equal to the entire month of August. It may be due to the fact that inventory has dropped to only 191 active listings priced above $2,500,000 which is the lowest active count since January 2008 and prices have dropped by 12.1%. This may be the light at the end of the tunnel. The question I have is “How long is the tunnel?”
-Mandy Berner, RA
Fast forward to August 2009. The stock market is on it’s way up again as it saw it’s 5th consecutive day of gains climbing over 9,500 and the press is reporting the country is now out of recession. In the luxury real estate market the dust has settled and offers are beginning to fly in. During the first 10 days of September we have already seen 5 accepted offers on listings over $2,500,000 which is equal to the entire month of August. It may be due to the fact that inventory has dropped to only 191 active listings priced above $2,500,000 which is the lowest active count since January 2008 and prices have dropped by 12.1%. This may be the light at the end of the tunnel. The question I have is “How long is the tunnel?”
-Mandy Berner, RA
Thursday, September 10, 2009
Financing News!
Hawaii Has Extremely High Loan Limits
Do you ever get wonder what are the loan limits for each program? Every state has different loan limits. For example, California conforming loan limit is $417,000 while Hawaii is $625,500.
Hawaii has one of the highest loan limits among other states.
Below are a few of the popular loan program limits:
Conforming - $625,500
Jumbo Conforming - $793,750
Jumbo - $1 million
FHA - $625,500
FHA Jumbo - $793,750
VA - $625,500
VA Jumbo - $793,750
The interest rate on each loan limit and program will vary. Keep in mind that while these loan limits are available, the restrictions and guidelines for each one will vary and may change at any time. With lending guidelines tighten; always check with a reliable loan officer to help guide you through your mortgage financing.
-Linda Le
Do you ever get wonder what are the loan limits for each program? Every state has different loan limits. For example, California conforming loan limit is $417,000 while Hawaii is $625,500.
Hawaii has one of the highest loan limits among other states.
Below are a few of the popular loan program limits:
Conforming - $625,500
Jumbo Conforming - $793,750
Jumbo - $1 million
FHA - $625,500
FHA Jumbo - $793,750
VA - $625,500
VA Jumbo - $793,750
The interest rate on each loan limit and program will vary. Keep in mind that while these loan limits are available, the restrictions and guidelines for each one will vary and may change at any time. With lending guidelines tighten; always check with a reliable loan officer to help guide you through your mortgage financing.
-Linda Le
Wednesday, September 9, 2009
Time is Running out on the Stimulus Credit!
First Time Home Buyers can put up to $8,000 in their pocket if they act soon.
According to the US Government, you are a first time home buyer if you have not purchased a home in the past three years. You must buy this home to live in yourself, as an owner occupant. In addition, once you purchase this home, the Government is offering, as part of the Stimulus Program, up to $8,000 as a Tax Credit. If, for example, you paid $3,000 in taxes, you will receive a check for $5,000. If you paid no taxes at all, you will receive $8,000.
Now is the time to buy, but the deadline is fast approaching. You must have your property closed by December 1, 2009. It is taking approximately 60 days from offer to closing. You have until (approximately) September 30 to make a decision on which property to purchase, and to get your offer accepted….
In addition to the $8,000 tax credit, another Stimulus plan is the 100% financing of a home loan, in which 80% of your home loan would be financed at a relatively low rate of interest (5% for example), and 20% of your home loan would be financed at a higher rate (9% for example). This 100% financing is available to people with credit scores of 720 or higher. In order to find out your credit score, you can go online to check it free.
Both of these Stimulus plans are available now, and the $8,000 tax credit won’t be around for that much longer. Act now! See a real estate agent today.
-Tiare Dutcher, RA
According to the US Government, you are a first time home buyer if you have not purchased a home in the past three years. You must buy this home to live in yourself, as an owner occupant. In addition, once you purchase this home, the Government is offering, as part of the Stimulus Program, up to $8,000 as a Tax Credit. If, for example, you paid $3,000 in taxes, you will receive a check for $5,000. If you paid no taxes at all, you will receive $8,000.
Now is the time to buy, but the deadline is fast approaching. You must have your property closed by December 1, 2009. It is taking approximately 60 days from offer to closing. You have until (approximately) September 30 to make a decision on which property to purchase, and to get your offer accepted….
In addition to the $8,000 tax credit, another Stimulus plan is the 100% financing of a home loan, in which 80% of your home loan would be financed at a relatively low rate of interest (5% for example), and 20% of your home loan would be financed at a higher rate (9% for example). This 100% financing is available to people with credit scores of 720 or higher. In order to find out your credit score, you can go online to check it free.
Both of these Stimulus plans are available now, and the $8,000 tax credit won’t be around for that much longer. Act now! See a real estate agent today.
-Tiare Dutcher, RA
Tuesday, September 8, 2009
3 Ways To Identify A Best Buy Property
There are three ways to determine if a property is a best buy:
1.) Property that yields a positive cash flow with minimal down payment typical for the area.
2.) Property asking price is substantially below like kind homes that have sold within the last six months.
3.) Property that is a quality structure and highly sought after in neighborhoods where the inventory for sale is relatively nonexistent and are selling at or below market value.
This week we will address item number one where the focus is on properties that yield a positive cash flow with a minimal down payment. Positive cash flow is defined as a property where the monthly expenses are less than the monthly income. Generally expenses are fees, (like utilities and maintenance), plus, taxes, insurance, mortgage principle and interest. The income is generally considered rents. As a result positive cash flow is monthly income minus expenses where the rents are notably higher than monthly cost associated with sustaining the property. It is important to note that mortgage payments will vary depending on down payment, loan principal, interest rate and term of the loan. In an area like Waikiki, it is considered a good buy if positive cash flow is generated with a down payment of less than 35%. Here are this week’s best buy properties.
$295,000, Fee Simple 1 Bed/Bath, Seaside Towers #907, 435 Seaside Ave
Listing Courtesy of Coldwell Banker Pacific Properties, Betty Saleh, RA
$258,000, Leasehold Fee Available, 1 Bed/1 Bath, Waikiki Banyan #2407
Listing Courtesy of Coldwell Banker Pacific Properties, Liza Erickson, R.
$525,000, Fee Simple, 3 Bed/1 Bath, 47-125A Okana Rd, Kaneohe, 63,946 sqft of land
Listing Courtesy of Coldwell Banker Pacific Properties, Teri Lynn Sato, RA
-Abron Toure, RA
1.) Property that yields a positive cash flow with minimal down payment typical for the area.
2.) Property asking price is substantially below like kind homes that have sold within the last six months.
3.) Property that is a quality structure and highly sought after in neighborhoods where the inventory for sale is relatively nonexistent and are selling at or below market value.
This week we will address item number one where the focus is on properties that yield a positive cash flow with a minimal down payment. Positive cash flow is defined as a property where the monthly expenses are less than the monthly income. Generally expenses are fees, (like utilities and maintenance), plus, taxes, insurance, mortgage principle and interest. The income is generally considered rents. As a result positive cash flow is monthly income minus expenses where the rents are notably higher than monthly cost associated with sustaining the property. It is important to note that mortgage payments will vary depending on down payment, loan principal, interest rate and term of the loan. In an area like Waikiki, it is considered a good buy if positive cash flow is generated with a down payment of less than 35%. Here are this week’s best buy properties.
$295,000, Fee Simple 1 Bed/Bath, Seaside Towers #907, 435 Seaside Ave
Listing Courtesy of Coldwell Banker Pacific Properties, Betty Saleh, RA
$258,000, Leasehold Fee Available, 1 Bed/1 Bath, Waikiki Banyan #2407
Listing Courtesy of Coldwell Banker Pacific Properties, Liza Erickson, R.
$525,000, Fee Simple, 3 Bed/1 Bath, 47-125A Okana Rd, Kaneohe, 63,946 sqft of land
Listing Courtesy of Coldwell Banker Pacific Properties, Teri Lynn Sato, RA
-Abron Toure, RA
Monday, September 7, 2009
Hawaii Real Estate Market At A Glance
Stabilizing Sales May Signal A Buying Opportunity
The Honolulu Board of Realtor's August Statistical Report has been released and the market continues to stablize which may signal the bottom of the market.
The report shows that there were 8 fewer single family home sales than last year( 247 vs 255) and 4 more condo sales as compared to prior year( 351 in 2009 vs 345 in 2008). Thus, no significant change in total unit sales vs prior year.
Median Sales Prices were below prior year for both single family homes and condos. $566,000 for single family homes as compared to $635,000 during the same month in 2008 while condos dropped by $38,000 from $290,000 to $328,000.
Since we are seeing a leveling of unit sales and prices continue to drop this may indicate that we are approaching the bottom of market and the end of Stage 4 of the Real Estate Cycle. Here is a breakdown on the 4 Stages.
Stage 1 - Unit Sales Flat, Prices Flat or Down
Stage 2 - Unit Sales Up, Prices Up
Stage 3 - Unit Sales Down, Prices Up
Stage 4 - Unit Sales Down, Prices Flat or Down
Stages 4 and 1 represent the best time for Buyers to purchase real estate since home values will be on the bottom of the median price curve and buyers can reap the rewards when prices go up again.
The average days on market for August was 48 days for single family homes and 51 days for condos. This represents a balanced market for both Buyers and Sellers.
There were 6.5 months of remaining inventory for single family homes and 6 months remaining for condos. 6 months of remaining inventory also represents a balanced market to Buyer's and Sellers.
Take advantage of opportunities in this balanced market, by hiring a knowledgable, experienced Realtor with specific neighborhood and market knowledge to assist you in identifying these opportunities.
- Dwight Ellis, Realtor Associate
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