On Top of the Aloha Beat BLOG

Today's Garden Island has an interesting article about the modernization of our Bureau of Conveyances. The Bureau of Conveyances is where property that is in the Regular system of Hawaii is recorded. It's an archaic system where each property is manual recorded. When you purchase a home here, someone actually physically goes to the Bureau and has a document stamped to make it official. The Garden Island article by Nathan Eagle describes the process of modernization and the possibility of moving the state of Hawaii's real estate market into the 21st century with, can you believe it, digital records.

According to the governments website, http://www.state.hi.us/dlnr/bc/,

The Bureau...

Maintains an accurate, timely and permanent record system for title to real property is the responsibility of the Bureau of Conveyances. The Bureau examines, records, indexes, and microfilms over 344,000 Regular System and Land Court documents and maps annually; issues Land Court Certificates of Title; certifies copies of matters of record; and researches UCC requests. Hawaii is the only state in the nation with a single statewide recording office.

Can you believe we are still microfilming? After 14 years of crticism about our archaic system, it sounds like the times they are a changin'.

When the top research scientists get together and discuss the serious issues of our environment,more and more people become aware. Here in Hawaii big issues include sea-level rise and the destruction of ecosystems like our coral reefs. Watch KGMB Channel 9's report 
on coral reefs in danger.

Check out Ken Stokes' SUSHI blog to read more insights and feedback about the UH conference this week on Oahu.

I'm disappointed that Ken did not make it onto the board of KIUC. But, he came pretty close. Mebbe' next year. 

First Hawaiian Bank, Central Pacific Bank and Bank of Hawaii lowered their base rates the week before last , following in the Federal Reserve’s footsteps. Hawai‘i banks’ prime lending rates went from 6 percent to 5.25 percent, effective Wednesday March 19th.
The prime rate is a benchmark for interest rates on many types of loans.
The Fed on Tuesday March 18th cut interest rates by three-quarters of a percentage point to 2.25 percent, the lowest level since December 2004. You may have been noticing that just because the fed cuts its rate of lending, the price of fixed mortgages does not go down. That's because the fixed market is tied to the bond market.

As of this morning, here are the rates with ZERO points from central pacific bank, one of Hawaii's most aggressive lenders.

The APR (Annual Percentage rate) is derived from adding additional costs of the loan such as origination fees, processing fees, etc. As you probably are aware, the lending limits for conforming loans was raised earlier in the month allowing Hawaiian buyers to afford more of the properties they wish to buy. 

Hawai`i benefits from increased lending limits.

The Economic Stimulus Act of 2008 is a $168 billion plan intended to jumpstart the sliding U.S. economy. While a lot of media attention has been focused on the $600-$1,200 rebate checks that millions of taxpayers will begin receiving this Spring, the new bill is also designed to help certain "high-cost regions" of the struggling housing market by:



Temporarily increasing the "conforming loan limit" from $417,000 to as high as $729,750 in specified areas; and

Temporarily increasing the size of loans the Federal Housing Administration (FHA) can insure from $362,000 to as high as $729,750 in specified areas.



If you're looking to purchase or refinance a home in a "high-cost region," this is great news. These temporary increases could help you avoid the higher interest rates associated with "non-conforming," or jumbo, loans. Although these new limits only apply until the end of 2008, the legislation does not exclude the refinancing of any past mortgages into these new "conforming loans." That means, if you qualify, you can take advantage of the new limits no matter how many years have passed since you obtained your mortgage.



Given the prices of Kauai real estate, this new act will certainly help out sales in the midrange of our market, say from $750,000 to around $1.2 Million. A high-cost region is typically determined by the median value of its homes. The median value is the specific price that is halfway between the least expensive and most expensive home sold in an area over a given period of time. Do not confuse this with the average home price. The median home price is the price at which half of all buyers bought more expensive homes and half of all buyers bought less expensive homes.



Kauai` homes are currently at a median price in the lower $600,000 range and that will qualify our island for this new program. FHA lending is starting to take up the space in the market previously occupied by the sub-prime loans. So with FHA, you often can put very little down. You CAN use FHA for your 2nd home in Hawaii, however the loan to value ratio will be lowering than on a primary residence where you can purchase with only 3% down. Now, with the increase on FHA amounts, that will assist a lot of folks, including first time home buyers, in getting a new home.



With all the Fed is doing to catalyze more real estate business, this year looks to be a good time for buyer's in our island market. Unfortunately, mortgage rates are creeping up daily.

Great values! Their loss may be your gain

The Kauai real estate market is holding its own and yet, there continue to be an evolving selection of motivated, even distressed sellers, who over-extended in Kauai. Whether it's a condo or a new home, there are some great values being offered by sellers who, for one circumstance or another, must sell their properties. Here are a few samples. If you have an interest in seeing a full list of current short sales & foreclosures, drop me a line, and I will email you directly.

Princeville Condo Foreclosures - Unit 26B at Puamana and Mauna Kai F6 appear headed for foreclosure. 26B needs renovations, but F6 is in very nice shape and has a view of the ocean as well. Both are scheduled for auction the first week in March.

Popular Puamana located next to new Starwood Westin Timeshare in Princville.

Mauna Kai F6 is clean and white inside and has distant ocean views too!

North Shore Ag Foreclosure - This home on Kalihiwai Road, on the way to Anini Beach, is almost 3,000 sq. ft. It has a partially built garage and is located on 2.5 acres. This property was on the market last year for $2.4 million and has now been reduced to $1.175 million. As it is a short sale, all offers are subject to the bank's approval. For more information about short sales in Kauai, click the previous link.
Kalihiwai Short Sale - home and 2nd bldg. on 2.5 acres.

East Side New Construction: Located on almost half an acre on Hauiki Road, in the mountains of Waipouli above Kapa`a, is a new construction single family home. The 2 bedroom, 2.5 bath home is just under 1800 sq. ft. with a separate 600 sq. ft. garage. China Green granite slab counters, 3/4 inch hardwood floors, and an office with separate entrance and half-bath are some of the special features. It has a great private lanai looking into the woods across the back. Originally listed at $1.1 Million, at $795,000 it is being sold below cost.

After several years of rumors, press releases, and delays, the Princeville Resort announced this week that beginning Sept. 19, 2008, they will be closing during renovations to re-brand the hotel as The St. Regis Resort, part of the Starwood Hotels & Resorts luxury series.

The marble lobby of the Princeville Hotel,
which is expected to be replaced with Hawaiian hardwoods.

Princeville managment cited recent economic conditions as having prompted the hotels decision to close rather than stay open during the renovations. The renovation will completely transform the 252-room hotel, including a redesign of the guest rooms, renovated public areas like the lobby and swimming pool and addition of an on-site luxury spa.

The 366 employees along with many independent contractors including local musicians may be out of work during the time period of the renovation. Let's hope the seven-month estimate is being rendered on mainland time and NOT Hawaiian Standard Time.... My notion is that this untimely closing will put added duress on the Princeville real estate market. Many tourists who buy here stay at the Princeville hotel. We'll see what happens this fall.