Though Dr Yun agreed that real estate is local, especially when it comes to vacation home sales, he provided current statistics for nationwide second home sales.  While these national figures do not in any way represent the median statistics for West Hawaii vacation home property sales, they are interesting.

Median sales price – $679,000
Median number of miles from primary residence – 348
Percentage of buyers who purchase with financing – 70%
Median buyer income – $87,500

Second home real estate prices are much higher in West Hawaii, especially those neighborhoods which allow short term rentals.  Of course our “miles from primary residence” is in the thousands.  My educated guess is those buyers who purchase with financing, 70%, is about the same in our market.  I believe the median buyer income for West Hawaii is significantly higher. Unfortunately, I am unable to separate second home sales and primary residences from our data.  Even though the following numbers include primary residences, the data is still interesting.  Here are sales statistics for North Kona and South Kohala (Kohala Coast resort) condos and single family (SF) January-August 2010 vs 2009.

Compared to 2009, sales are up and prices are down.  Lower prices are most definitely encouraging sales.   Second home owners buy almost all of the condos, and they have noticed the low prices.  I attribute the high single family unit sales to locals buying homes in the spring with the now expired tax credit.

 Dr Yun commented on our frustration with the lack of loan products to finance second homes which will be used occasionally as short term vacation rentals.  Currently only portfolio loans are available for these properties, as the government is not backing second home purchases, regardless of the excellent qualifications of ready buyers or the subject property.

 He explained that banks shed jobs in 2009 in response to the lack of funds which froze the real estate market.  Of course the freeze was due to the banks’ own decision to turn off the availability of funds.  Though the taxpayers bailed out the banks, the banks are now so risk adverse they are not ready to start lending again.  Yes, the bailout loans have been repaid to the federal government, and bank profits have soared to pre-crisis levels, according to Yun.  But banks fear a double dip recession.  So instead of providing funds to the very taxpayers that bailed them out, the banks’ fear of lending is now fueling the foreclosure market. 

Taxpayers can neither buy nor sell when credit is unavailable.  If a homeowner is unable to sell his vacation home because his fully qualified, ready, willing and able buyers are denied  credit, he could end up in foreclosure.  This is a nasty cycle that can only be cured by the return of sensible lending guidelines for vacation homes.

I just returned from the National Association of Realtor’s (NAR) Resort and Second Home Symposium, held this year at Incline Village, Lake Tahoe, Nevada. As a certified Resort and Second Home Property Specialist (RSPS), the Resort Symposium is an opportunity to meet with other brokers who specialize in resort and vacation home properties. We gather to share ideas and solutions, and to hear the latest from industry experts. The headline speaker June 13 was Dr Lawrence Yun, NAR’s chief economist. For the purpose of this discussion, vacation homes and second homes are defined as distinct from investment properties. The later are not intended for use by the owner, and are purchased specifically for return on investment rather than for enjoyment by the owner.

Dr Yun summarized his interpretation of current US second home ownership trends. First, he argued that we have reasons to be optimistic. Claiming the future outlook is bright, he then asked when will the future arrive? We are still in the middle of the the collapse, he said, but according to various data sources, the second home market appears to be holding steady at the apparent bottom of the cycle. Noting that real estate is very local when it comes to second and vacation homes, prices appear to have fallen so low an increase in unit sales is underway in many resort markets.

That certainly appears to be the case in Hawaii Island’s South Kohala resort district. January through May 2010, 70 condo units closed with a median sales price of $400,500. That’s quite a jump from the 33 unit sales during the same time period in 2009, and the $410,000 median price wasn’t much different. In North Kona, which is Kona town, 62 condo units sold in early 2009 with a median sales price of $322,250. For the same time period in 2010, unit sales in Kona totaled 126 with a median price of $262,500.

If Yun is correct, the second half of 2010 should see a continued increase in unit sales, with price declines waning.

“Interest in travel,” “time available to travel,” and “money available for travel,” variables from which the index is derived, have risen. Unfortunately, the increased cost to travel, and lingering concern about job loss may keep people at home.  However, financial factors that influence near-term leisure travel are mostly positive.  For example, the percentage of U.S. adults citing a “high level of personal credit card debt” fell from 56% in April 2009 to 46% in April 2010.  

The airlines serving Hawaii have recently indicated more seats will be added.  More travelers to Hawaii is good news for real estate sellers.  The West Hawaii Island’s entry level market (to $500,000) had already recovered.  Excess inventory has been mopped up, and prices are creeping up.  If you have been thinking about buying West Hawaii at the market’s low point, now is the time to visit with your checkbook. 

Take a look at Hawaiian Airlines’ reduced fares beginining August 9^th.   Tickets must be purchased by June 11, so now is definitely the time.  While you are here I can put together a short tour of homes for you.

Those who vacation in resort neighborhoods of the Kohala Coast may not know they are eating Hawaii Regional Cuisine when they visit Roy’s and Merriman’s restaurants, but they are.  Chefs Peter Merriman and Roy Yamaguchi are two of the 12 (some say 19) gifted chefs who, in the late 1980s, established a culinary movement that blends Hawaii’s diverse ethnic, cross-cultural flavors.  Honolulu Magazine has named Merriman’s in Waimea (Kamuela) the best Big Island Restaurant for 13 consecutive years. Roy Yamaguchi is a James Beard Award winner based in Oahu, but there’s also a Roy’s in Waikoloa Beach Resort.

The main idea of Hawaii Regional Cuisine is to take advantage of fresh local island ingredients and incorporate them into creative and beautifully presented dishes.   The cuisine focuses on grass fed cattle raised upcountry on deep, lush pastures, tropical fruits and vegetables grown in rich volcanic soil, and large deep sea fish. If you are a red meat fan, I highly recommend a night at Kahua Ranch, or a tour of Parker Ranch to learn about Hawaii Island’s paniolo (Hawaiian cowboy) past.

Previously, Hawaii’s food scene was sliced pineapple on a pizza.  Pricey Honolulu restaurants served meals made from frozen, picked-before-it’s-ripe food from distant lands.  Traditional Hawaiian cooking was distorted to meet mainland tastes.  When my parents think about dining in Hawaii, they think of poi, laulau, kalua pig and lomi salmon. This traditional Waikiki lu’au fare was soon followed by the “tiki” cooking style, which was mostly Cantonese with a fruity Hawaiian twist. Then came Hawaii Regional Cuisine which put the Aloha State on the international fine dining map.

Menus may include items such as seared albacore tuna with coconut ginger sauce; panko oysters with spicy, vine-ripened yomato relish; grilled mahimahi with poha, mango and papaya relish; furikake crusted salmon; Chinese pasta with sesame crusted opah and baked coconut taro.  Thank you to Sam Choy and my Choy of Seafood cookbook.

If you are visiting Hawaii in June, the state’s largest “foodie” festival happens on Oahu. Flavors of Honolulu is a three-day event showcasing dishes from more than 25 of the island’s best restaurants. There’s live musical entertainment, cooking demonstrations, wine tastings, a beer garden and exhibits.  The event takes place at the Honolulu Hale on South King Street. For more information call (808) 532-2115.

The personal attachment we all have to our homes is part of the reason it can be difficult to sell a Hawaii home.

• Homeowners who associate positive memories with a house are more likely to value it at higher than the market rate. This can make it difficult to find a balance between what you think your home is worth and what it will reasonably sell for.
• Staging a home you love (and still live in) can be more challenging than staging an empty space. Packing away your personal belongings (e.g., pictures, knick knacks, books) to give your home a more streamlined and sell-able look for up to months at a time can put a strain on your enjoyment of the home selling and buying process.
• It can also be hard to put all your trust in another person’s hands. Selling a home in Kona and the outlying areas often requires that you have open houses, walk-throughs, and open doors to everyone from real estate agents to nosy neighbors. Having others view your home – oftentimes while you are not there – requires that you put personal reservations about privacy aside.

Although this paints a rather bleak portrait of what selling a home entails, the truth is that people buy and sell homes every day. They upgrade to new family homes in Kona suburbs and move to downtown condos with chic views – and are usually more than happy with the outcome.

One way to get past issues of trust and privacy is to put your home in the hands of a real estate agent you trust. Your agent works as an advocate for you and your house, making sure that everything proceeds safely and with a minimal hassle. And because your agent knows the Kohala real estate landscape, it’s easier to settle on a price and a staging set up that will get you faster results.

Diana Woods has been working in the Hawaii area for years, and knows exactly what it is that makes local homebuyers interested. To minimize your anxiety and sell a HI home quickly and easily, feel free to call our office today.

Kona and Kohala homes for sale are noted for their family-friendly communities and idyllic backdrop, but that doesn’t mean that every home is ideally placed. Before you purchase a home in any Hawaii city, it’s important to research what the rest of the neighborhood has to offer.

Schools

Schools are the number one consideration when it comes to choosing a good neighborhood in HI. If you have kids, the reasons are easy to spot: you want your children to have access to a good, safe education. However, even homeowners without kids need to keep this issue in mind, especially if you plan on selling the house some day. Top-rated schools will not only keep your property value high, but they’ll also serve as an appeal to potential homebuyers in the future.

Crime and Sex Offenders

Few people want to live where they feel unsafe or fear for their families. That’s why you should always check the crime rate and search for registered sex offenders in the area. Never take a neighborhood at face value; a place that looks charming during the day might have a high rate of break-ins, while a neighborhood that looks less savory might actually have a strict neighborhood watch program in place and several policeman living nearby.

Walkability/Livability

Suburbs in the region of Kona are generally good places for a slower pace of life, but the ability to walk to the market, the park, or to run simple errands might not be as high as what you can find in a more urban center. At the same time, Kona suburbs might be better for taking a scenic evening stroll. When determining where you want to live in Hawaii, keep in mind what is more important for your lifestyle: being near amenities, or being near other families with similar goals as you.

The same is true for things like construction zones, local garbage plants, train tracks, playgrounds, dogs, or industrial zones nearby. Make sure you take a walk through your potential neighborhood during the day and in the evening to see what types of noises, smells, and sights you will have to get used to.

The Neighbors

Nothing tells you more about a neighborhood in Kohala than the neighbors. Does everyone keep their homes and yards in good order? If a visually-appealing community is important to you, you might want to look around to make sure everyone else feels the same way. You might also want to investigate why. Is upkeep important to the neighbors, or is it held in place by strict homeowners’ association rules? Are you ready to make the same level of commitment?

Also, you’ll want to determine the types of people who live nearby. Is there a large percentage of young families? Teenagers? Professionals who are rarely at home? Although these things can and will change, they will tell you a lot about the overall neighborhood culture.

Neighbors also matter when it comes to the type and sizes of homes they have. Are there a large number of foreclosures? That could indicate a lowering neighborhood value. Are the other houses very different than yours in terms of value? (Note: Being surrounded in houses much higher in value than yours means that you may pay more in property taxes. Houses with a lower value means that you may end up having a difficult time selling in the future.)

Buying Your New Kona Home

Buying a home, whether it’s in the center of Kona or on the outskirts of Mauna Kea Resort, is a big undertaking. It’s important to look beyond the physical structure of your dream house to notice all that’s going on around you. After all, the place you call home is about more than four bedrooms and three baths; it’s about your way of life.

If you’re ready to learn more about purchasing a home in HI, contact Diana Woods today. We’ll match you with the perfect home—including neighborhood amenities.

Sight

When selling a Kohala home or preparing your Kona home for viewing, you should pay attention to both the big picture and the details of your house.

For a bigger picture viewpoint, try to see everything with fresh eyes. When you pull into the driveway, what overall impression does the house give you? Is it clean and well-cared for? Does it look like the sort of place a family would want to live?

Then, as you walk up to the front door, pay closer attention to the little things: the state of the flowerbeds, a cracked panel of siding, or an unsightly satellite dish at one corner of the house. These little things are often the easiest to fix in terms of time and money.

Do the same thing as you walk through each room of your house. Take a quick survey from the doorway, and then walk through to make note of smaller defects. Different homebuyers look at different things, so it’s best to ensure that even the littlest problems are attended to.

Sound

The sounds of an ideal Hawaii home are pleasing to the ear, and you should do your best to keep them that way. Avoid running any noisy appliances when you’re expecting potential homebuyers to stop by. Televisions, radios, and even kids playing outside can all contribute negatively to the experience. When possible, you should either opt for silence (to demonstrate the peacefulness of your home) or use light background music that won’t be offensive to anyone. If you live near the water or wilderness, you might also open a few key windows to let in the most natural sounds.

Smell

It’s long been held as a “rule” of real estate that you should bake cookies or light a vanilla-scented candle when you show your home. These traditional smells are ones that most people associate with happy memories, which can trigger better feelings about your HI home for sale.

While you don’t have to stick to traditional baking smells, the idea is a good one. However, if you use scents, choose ones that are inoffensive, are hypo-allergenic, and aren’t too obvious. You can also choose smells suited to particular rooms. Light and airy scents are well-suited to bathrooms, while the baking smells tend to do better in living rooms and kitchens.

Touch

In most cases, you don’t want people walking through your home to touch your personal possessions. However, the sense of touch can be important. Plush carpeting is welcoming in bedrooms and living spaces, while cool hardwood or tile makes a kitchen feel cleaner and more efficient. Crisp, clean appliances promise a treat for the fingertips even if the potential homebuyers don’t make actual physical contact.

For the sense of touch, it’s best to promise a great tactile experience, rather than actually provide one. Place soft furnishings next to clean architectural lines. Throw a cozy blanket over some leather furniture. Choose draperies that are either light and airy or heavy and warm, depending on the mood you want to set.

Taste

When you have an open house in Kona, keeping appetizer trays on hand can go a long way in making a good impression. Elegant sandwiches, tasty tarts, and other bite-sized treats cause people to linger and take a better stock of their surroundings. Food at a open house, while potentially messy, is also more likely to draw other real estate agents. At the end of the day, greater exposure – whether it’s potential buyers or real estate professionals other than your own Diana Woods – means a greater likelihood that your home will sell quickly and easily.

Selling a HI Home

A house is more likely to sell if it seems like a home. When you engage all the senses, you’re doing more than showcasing the physical features of your house – you’re demonstrating how comfortable and welcoming it is. And in today’s market, taking those few extra steps can make a huge difference in how quickly your Kona, Kohala, Mauna Kea Resort home sells.

What is an Eco-Friendly Home?

An eco-friendly home is any house that strives to reduce energy usage either during the building process or for average, everyday use. Green Home Building Standards have been established by the National Association of Homebuilders (NAHB), which strives to ensure that ecologically sound building practices meet structurally sound ones no matter where you live.

Some of the components of a “green” home include:

• Energy-efficient features, including appliances and windows with the Energy Star rating. This can also be accomplished by doing simple things like using more efficient lighting fixtures and light bulbs.

• Water-efficient features, including Energy Star ratings on toilets, showers, faucets, dishwashers, and washing machines. At a more advanced level, this can include water recirculation systems and on-site wastewater treatment systems.

• Resource-efficient features, which generally come from structural changes that have to do with house size and layout, window placement, heat conservation efforts, and even using fast-renewing resources (like bamboo) for the floor or other building materials.

• Quality air features, which provide good ventilation without introducing toxins into the air either inside or outside the home.

• Outdoor features, including landscaping that contributes to the local vegetation, and the use of permeable materials for driveways and walkway. Water waste should also be reduced wherever possible.

Purchasing a Green Home

One of the greatest things about eco-friendly homes in the Kona region is that most of the costs are figured in during the building process. This means that if you’re in the market to purchase a green home, you will only have to help maintain the work that’s already been done. While this can increase the initial price tag of your new HI home, chances are that it will save you large amounts of money as the years progress.

In an age where it’s becoming increasingly more important to give back to the environment, more and more homeowners in the Kona area are loHIing for ways to reduce their carbon footprint. It doesn’t matter whether you purchase a new home in Mauna Kea Resort or an older building with recent renovations in Kohala, Diana Woods can help you find a way to combine your love of the environment with the home of your dreams.

The truth is, there’s no reason why your Kona home has to be the size of a small country in order to appeal to homebuyers. Small spaces, while more of a challenge to decorate and stage, have quite a bit of potential for appealing to those looking for charm, coziness, and class. If you’re doing the staging for your home yourself, here are few important tips in making your small home look like it’s worth every penny.

1. Get rid of the stuff. In any home staging effort, you want to get rid of personalized items and all the miscellaneous knickknacks that find their way into your home – including paintings and even overly unique drapes. This is never more important than when you’re trying to make a small house look bigger in HI.

2. Go for neutral colors. Dark colors make rooms look smaller in size. By using light, airy colors, you’ll give the appearance of more light – and therefore, more space.

3. Offer storage options. Most people need to really “see” themselves in a Kona home before they buy it. If you find creative ways to set up storage (such as in hidden cupboards, in strategic locations behind the couch, or even in a great set of shelves), you’ll give the impression that the house is not only beautiful, but livable.

4. Go for high-end details. Many of today’s homebuyers are willing to overlook a smaller space as long as it still retains a high value. Things like crown molding, built-ins, great appliances, and hardwood floors can go a long way in adding to the charm factor.

5. Use bright, strategic lighting. As with choosing lighter colors for wall paint, the idea of using light to give the impression of space is a good one. This is especially true if you can use track or recessed lighting to streamline the space even more.

Remember, there is no such thing as a typical homebuyer. By neutralizing your space and offering the little luxuries that allow people to envision themselves in your home, you’re allowing them to look beyond square footage to see how your Kona house for sale will help them create a lifetime of memories.