August 2011 E-Mail Update

This is my 8/9/11 E-Mail Update. I send an Update out each month after the statistics for the preceding month have been posted on the Honolulu Board of Realtor’s website. If you want to be taken off the distribution list for our monthly E-Mail Update, hit reply and send me an e-mail stating that. Please include your first and last name to make it easier to identify you.

All the following figures reflect Oahu MLS sales data for the year to date (January through July) for 2011 compared to last year or 2010. Closed sales of houses 1,630 versus 1,748 (- 6.8%); closed sales of condos 2,316 versus 2,389 (- 3.1%); median sales price of houses $575,000 versus $585,000 (- 1.7%); median sales price of condos $300,000 versus $304,950 (- 1.6%). Although all these figures are negative, they would be positive were a comparison done of 2011 to 2009.
Hundreds of illegal vacation rentals on Oahu could be shut down under a proposed ordinance that would make it easier to enforce the law that bans short-term rentals. The proposed ordinance would require vacation rental owners to include their city permit numbers on any advertisements in an effort to deter illegal businesses. Under the plan, a vacation rental operator would face an initial fine of up to $1,000 for failing to post a permit number. If an advertisement without the number remains in place seven days after a warning, potential fines of $1,000 to $2,000 a day would kick in. The contentious debate over vacation rentals has long pitted neighbor against neighbor. Without a permit, a residence can be rented for no less than 30 days. A moratorium on issuing additional permits was instituted in 1989; however, effective enforcement of the law continues to be a problem.

Since 2006, the following national retailers have opened one or more stores in Hawaii: Bath & Body Works, Bed, Bath & Beyond, Chico’s, David’s Bridal, Forever 21, Nordstrom, Petco, Target, Victoria’s Secret, Walgreen’s (11 stores), and Whole Foods Market.

National retailers now searching for space: Anthropologie, Applebee’s, The Capital Grill, H&M, Olive Garden, PetSmart, and Urban Outfitters.

The annual Asia-Pacific Economic Conference (APEC) is the premier forum for Asia-Pacific economies to cooperate on regional trade and investment issues. The annual meeting is held in a different country each year. The 2011 meeting is being held in the United States for the first time since 1993. President Obama selected his birthplace, Honolulu, to be the host city. The APEC meeting involves economies that account for 54% of global gross domestic product, 44% of world trade and 61% of U.S. exports.

Some 20,000 people are expected including at least 19 heads of state and double or triple that number of ministers and cabinet officials. Both President Obama and Secretary of State Hillary Clinton will be here as well as an estimated 2,000 journalists. Local officials have been planning this event for two years. This will be a huge opportunity for Hawaii to put its best foot forward and garner favorable worldwide publicity. More than $137 million is being spent in public and private funds on a host of upgrades and makeovers. The event is expected to boost Hawaii’s economy by $120 million and even more if attendees return home with favorable impressions of Hawaii.

Those of you that may have been caught up in a travel gridlock created by the President visiting Hawaii may be wondering how they’re going to handle 19 heads of state, all coming and going at the same time. However, that may be of minor concern compared to what they’re going to do with the homeless and protestors in high visible areas like adjacent to the Hawaii Convention Center. Part of Gov. Abercrombie’s plan has been to encourage churches and other groups to stop feeding the homeless in high visibility areas to get them out of those areas. However, this plan has met with only limited success.

As for gridlock, the 19 leaders will attend a Nov 12th (Saturday) reception and dinner at the Hale Koa Hotel in Waikiki. On Nov 13th (Sunday) the leaders will attend a meeting hosted by President Obama at the JW Marriott Ihilani Resort & Spa at Ko Olina Resort & Marina. Other meetings will be held at the Hawaii Convention Center. The various meetings of leaders will be relatively small in terms of participants, but will obviously involve the heaviest security measures.

Restaurants in Hawaii are adjusting to a total ban on shark fins, a pricey Chinese delicacy used in shark fin soup. The state law took effect July 1, 2010 but gave restaurants a year to use up any remaining inventory. Restaurants serving fins will now be fined $5,000 to $15,000 the first time they are caught. A third offense will result in up to a year in prison and a fine of $35,000 to $50,000. The new law replaces a prior law that banned the landing of shark fins at Hawaii ports. Now the aim is to choke-off demand for the product at restaurants. Shark fining, the act of cutting off shark fins and dumping the carcasses in the ocean has resulted in excessive over-fishing. Data from the International Union for the Conservation of Nature say that about one-third of open-ocean shark species are in danger of becoming extinct due to over-fishing. A shark fin is essentially tasteless; the flavor comes from ingredients it’s cooked with, usually a rich savory sauce. Local restaurants are experimenting with imitation replacements that will be significantly less expensive for diners.

There are no snakes indigenous to Hawaii. Allowed to be loose in the wild, a pregnant female snake could create havoc. The state has an amnesty program in which owners can turn in illegal animals with no penalty. Still some owners let their pet snakes loose. Pig hunters in Waiawa Gulch found the most recent snake, a 9-foot-3-inch, 57-pound boa constrictor, on July 4th. Officials believe it was likely someone’s pet in view of its smooth skin and docile behavior. It was the third live snake captured on Oahu this year.

Hawaii is the 47th thinnest state according to a 2011 analysis by CalorieLab, Inc. The Company uses data for adults collected by the Centers for Disease Control and Prevention and then averaged over three years in order to smooth out statistical fluctuations, Colorado in the nation’s thinnest state while Mississippi was the fattest for the 6th consecutive year.

Western Athletic Conference (WAC) football media preview reporters have voted UH quarterback Bryant Moniz as the league’s preseason offensive player of the year. Moniz led the entire nation in passing yards and touchdown throws as a junior in 2010. Largely as a result of Moniz’s skill, Hawaii has been ranked No.1 in both the media and coaches WAC preseason polls despite the fact that they return only two offensive starters from their 10-4 team in 2010. UH, Fresno State and Nevada are in their final year of WAC membership

Governor Neil Abercrombie promised a more collaborative, less adversarial approach to public-sector labor unions, however, the Democrat finds himself in a similar position as his predecessor, GOP Governor Linda Lingle. The Hawaii State Teachers Association has indicated it will file a legal challenge to Abercrombie’s decision to unilaterally implement a 5% pay cut and an equal split on health insurance premium costs for 12,700 teachers. Lingle took tons of political static, negative letters to the editor, etc for implementing forced furloughs of teachers and other state workers. I wonder if she takes some delight in seeing that her successor, a leading labor ally for four decades, is encountering similar union problems.

Following is the text of an e-mail sent to me by Bob Thomas: I have two properties on Oahu, both covered by policies issued by American Home Shield. On my current renewal, they overcharged the General Excise Tax (GET) by $23.27, Instead of charging $17.29 (4.712%) I was charged $40.56 (11.05%). They claim it was a mistake but I wonder how many others didn’t realize this overcharge. Perhaps you might want to make mention of it in your next newsletter.

The final two items have little to do with Hawaii or real estate; however, I thought they might be of interest. As our baby boomers reach retirement age, an increasing number of stores, restaurants, hotels, airlines, etc. are offering discounts for the about 60 and older crowd. Since many senior discounts are not advertised to the public it may be to your advantage to always ask. Here are a couple examples from a list recently sent to me:

Burger King 10% (60+)

Subway 10% (60+)

Greyhound 5% (62+)

Alamo 25% (AARP members)

Kmart 20% (50+)

The end of August, my wife, Mary Lou, and I shall be on our annual fishing trip (silvers and halibut) to Ketchikan, Alaska. We fly Alaska Airlines with overnights both coming and going at the Seattle Airport Marriott. Discounts: Alaska Airlines 10% (65+); Marriott Hotels 15% (62+). As I’ve done in the past, I may combine the September E-Mail Update with one to be sent in October.
And finally, I recently came across the following quote by Theodore Roosevelt, 26th president of the United States. With all the recent debt-ceiling-related anger directed towards members of both parties in Congress, I thought the quote was apropos: When they call the roll in the Senate, the Senators do not know whether to answer “Present” or “Not Guilty.”