October 2011 E-Mail Update

This is my 10/13/11 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, hit reply and send me an e-mail stating that. Please include your first and last name to make it easier to identify you. The third quarter newsletter has been posted on our website at stott.com where it can be downloaded.

In September, sales of both houses and condos on Oahu improved compared to a year ago. Sales of houses increased to 284 compared to 273 a year ago while sales of condos increased to 364 compared to 306 a year ago. Year-to-date sales (January through September) have steadied out over the nine-month period. Sales of houses were at 2,200 compared to 2,252 a year ago while sales of condos were at 3,030 compared to 2,898 a year ago. Total sales (houses plus condos) were at 5,150 compared to 5,230 a year ago.

Sales prices, though, have continued to decline.The median (midway) sales price of houses for the month of September was $570,000 compared to $620,000 a year ago (-8.1%) while the median sales price of houses for the nine-month, year-to-date period was $570,000 compared to $598,000 a year ago (-4.7%). For condos the median sales price for September was $316,600 compared to $330,000 a year ago (-4.1%) while the median sales price for the year-to-date was $302,500 compared to $305,000 a year ago (-0.8%).

The Housing Affordability Index is a measure of the affordability of an area comparing the median priced home to the median priced household income. An index of 120% means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability. The figures are year-to-date for the past three years for houses and condos: 2011: 131 condos; 74 houses; 2010: 121 condos; 66 houses; 2009: 115 condo; 64 houses. Looking at the first nine months of the past three years, housing has become increasingly more affordable on Oahu for both condos and houses.

The developer of a regional mall in East Kapolei, similar in size to Pearlridge Center, plans to open the first phase in 2014. The complex to be named Ka Makana Alii will be built in two phases and will consist of 1.1 million square feet of retail space, the same size as Pearlridge Center, and 200,000 square feet each of hotel and office buildings. The complex will be built between Renton Road and Kapolei Parkway.

The first phase will be a relatively small, neighborhood retail center of about 200,000 square feet on 20 acres. The much larger second phase to be built on 47 acres is expected to open in 2015. Ka Makana Alii was first announced in 2006 and represents an ambitious goal to develop an open-air complex of 22 buildings in an area envisioned to accommodate most of Oahu’s population growth. The project is designed to have 4,500 parking spaces including 2,000 in an underground garage.
Hawaii is the most Democratic state in the nation while the GOP holds the most sway in Utah according to a Gallup Poll released in August. The poll ranked the states based on the difference in the state residents who identify as or lean Democratic and the percentage who identify as or lean Republican. Democrats had a 24-percentage-point advantage over Republicans in Hawaii. Nationwide, Democrats had a slight advantage in the first half of 2011 according to Gallup with 44 percent of Americans identifying as or leaning Democratic and 40 percent identifying as or leaning Republican. Democrats currently have a 43-8 majority in the Hawaii House and a 24-1 majority in the Hawaii Senate. The Governor of Hawaii, the Mayor of Honolulu and the four members of Congress are Democrats When GOP Linda Lingle achieved her victory in the 2002 gubernatorial race; she became the first Republican governor of Hawaii in forty years, subsequently serving two four-year terms.

Hilo won the Senior League World Series (15 & 16 year-olds) going undefeated in the World Series. It was only the third time a team has gone undefeated. For Hilo, it was the second time they won the World Series, having also won it in 2003.

Seventeen gambling bills were submitted to the state this year with most of them designed to provide Hawaii some form of financial relief. Hawaii and Utah are hyped as the only states in the nation with no legalized gambling; however, this is not technically correct. One form of gambling that has thrived in Hawaii for decades is bingo played at military bases. Every night of the week, bingo games are held at one or more military facilities on Oahu. They are open to both military and non-military patrons. Most involve a buffet dinner where bingo sheets are provided to diners along with their meal. This may be coming to an end. The Navy Captain who has held command of Joint Base Pearl Harbor-Hickam since June has temporarily suspended the games at both the Hickam enlisted club and the Hickam officers club while conducting a review to ensure the current program is consistent with regulation and policy
UH is studying hosting a regular-season football game in Japan. UH Athletic Director, Jim Donovan, met with officials in August at the Kyocera Dome in Osaka about playing a game as early as 2014. Without sponsorship, the cost would be $500,000 to $600,000 to rent the stadium, take care of the hotel and travel for UH and another team. However, Donovan is hopeful of securing sponsors for what would probably be a four-day trip. The UH opponent would likely come from the Mountain West Conference, which UH will join in 2012, or the Pac-12.

Aloha shirts will adorn five U.S. postage stamps next year. Two of the shirts showcase surfers and their boards; one shows fish, shells and starfish; another shows the bird of paradise flower; and one shows the Kilauea volcano. The stamps will be sold at 29 cents, the postcard rate, sometime next year.

Canoe pavilions, a café, concession stands, a marina and an ocean activity center are among the activities the state is proposing in a master plan for Sand Island. The improvements would be paid for largely by private investors who would then be allowed to develop and operate a 400-500-slip marina on public land.