Three pressure systems have been circling the islands this last week giving us weather that will change at the drop of a hat. For the most part the earlier part of the week was wind, wind and more wind with showers on and off. By Friday, Saturday and Sunday the days would sift constantly from nice sunshiny “wear a tank top” weather to the skies suddenly darkening and strong down spurts of rain making us run for cover. It’s been a week of not being able to count on to plan as far as the weather goes but it’s better than most places in our nation (I am told).

Road Widening Project

A question that I’ve been asked, and have asked myself, is “when is the new Safeway Shopping Center in Puhi going to break ground????” The answer to that question came in the form of an announcement of the Kaumualii Highway Road Widening Project this last week. Ground breaking officially took place last Wednesday in a ceremony attended by officials and the Mayor. The $39 million dollar project will take two years to complete and will bring many jobs here to Kauai.

Taking the 2 lane highway to 4 lanes will reduce traffic and make life easier for island residents and visitors alike. The 2 mile stretch of road to be worked on is between the old Lihu‘e Plantation mill bridge to Anonui Street at the entrance to Komohana Subdivision just west of the Puhi Road intersection. The widened Kaumuali‘i will include sidewalks and should have more room for bicyclists. Intersections will also be upgraded and improved the entire length of the project. Safeway has said they will delay their project until this work is completed. The Department of Transportation is saying they are “not taking the blame” for the delay but it makes sense that Safeway would put off their plans while this major project is being done near their new center.

New FHA Loaning Requirements

The Federal Housing Administration commands about 40% of the mortgage market and they have imposed new lending rules that some are calling a “healthy change”. The guidelines include a hefty down payment for low FICO score borrowers and an increase in the upfront mortgage insurance premium to 2.25% (it was 1.75%). The 10% down payment is required for borrowers with FICOs of less than 580. The MIP will be increased in a few months from the current charge of 1.75 basis points. This change is welcome yet long in coming, for the past four years FHA was an ‘anything goes’ environment.” Any change from the FHA being as big as they are will surely affect some housing market segments.

Bank of Hawaii Number One Bank on Forbes List

The number one national bank listed on Forbes ranking is our very own Bank of Hawaii. Citing the bank’s robust capital ratios, its stock performance and the small percentage of money tied up in bad loans, Another Hawaii bank, Central Pacific Bank, was near the bottom of the list, ranked 92nd out of 100.

 Citing Bank of Hawaii’s ultra conservative standards in the heat of the housing market this bank did not get in the trouble that it’s giant counterparts like Bank of America and Citigroup did. Additionally Bank of Hawaii did not take government TARP money last year, which diluted the stocks of many of the banks that took the bailout. Central Pacific was among them.

Kauai Real Estate News

Really, really nice sales activity last month as noted in my excel spreadsheet. We had 16 sales close last week and I’ve noticed a lot of properties going “contingent” on our MLS service. For a list of what came on the market and what sold last week CLICK HERE FOR SPREADSHEET

“Oahu Home Sales Continue At Fast Pace”  “Maui Home Sales Rise As Prices Fall” “Kauai homes sales jump 82 percent”   These are the headlines that we are now seeing on the front pages of our newspapers and they are accompanied by statistics to support their headlines.  Got my attention!  I thought I’d check out what Kauai did island wide for the month of February.  By using real statistics as inputted into our Multiple Listing Service here’s what I found: 

For the Month of February 2010 

The entire island had an increase in sales by 81.83% over February of 2009.  All areas of the island showed positive growth with the exception of the area of Waimea which had a decrease in their residential housing.  In the Kapaa area condos and commercial land were also down. 

The median price increased by 10.71% island wide.  Overall Island wide every sector improved modestly.  

Inventory needs to clear out before we see any price increases and I’ve seen similar figures like these for the last couple of months.

For a current list of what came on the market and what sold last week

 CLICK HERE 

Orange County California Benefits From New Flights Being Added to Hawaii 

Continental Airlines is adding three new flights from Honolulu and Kahului on Maui to the West Coast starting yesterday (Sunday, March 7^th).  Continental will launch a flight from Maui to Los Angeles and another from Maui to Orange County also a flight from Honolulu to Orange County.  These routes had been announced last December. 

Green Cars Come to Poipu

Warren Doi and Justin MacNaughton are bringing a new business to the south shore of Kauai along with a partner that you might have heard of, The Grand Hyatt.  Together they are offering “on-demand” transportation to the visitor industry.  Visitors can now rent their vehicles on an hourly basis and are provided with a “cost-effective, green alternative.”  For $15 an hour guests can rent one of four custom-made, family-friendly Ford Hybrid Escapes with all the latest technological frills.   

Currently visitors to the resort will rent a car that might sit in the parking lot unused for several days of their vacation.  Statistically 50% of the visitors to the Hyatt do not have cars and rely on shuttle, buses or taxis.  This service is available to everybody in the area and the duo hope that this is only the start of a new “Going Green” Win-Win method of tourists transporting themselves around the Garden Island of Kauai. 

Bethany Hamilton Movie 

The teenage surfer who lost her arm to a Tiger Shark on the north shore of this island has inspired millions of people who saw her appearances on shows like Oprah and The Ellen Degeneras Show.  Bethany Hamilton, who was 13 years old at the time of the attack, was surfing on the north shore off Makua Beach in October, 2003.  She lost her left arm from just below the shoulder to the Tiger Shark but was able to make a full recovery and is now surfing again. 

She’s poised and mature beyond her years and credits her faith to sustaining her through the recovery.  Her story is now being filmed on the north shore and is being directed by surfer Sean McNamara who spent several years directing the “Baywatch” television series and knows his way around surf and beaches.

Actress Anna Sophia Robb plays Bethany in the film and three days are being spent filming here in Kauai with the remainder will be done on Oahu.

Saturday morning started for my husband and I with a phone call at 5:45 a.m. from the Civil Defense Department warning us of an approaching tsunami.  We were awake anyways as we were planning on going golfing so we were watching the morning news when the call came.  I checked our phone book as the news had suggested to make sure that our home is not in a tsunami zone which it was not but, our main access road is Poipu Road which looked like it would be blocked off.  We decided to continue on with our plans to golf because the 9 hole Kukuiolono Golf Course is uphill in Kalaheo and well out the way of danger.  The golf course is also a park and has plenty of lawn areas and walking paths, a favorite for joggers and dog walkers.

We got to the deserted golf course (very unusual for a Saturday) and started our round with another local friend.  The three of us noticed car after car after car of tourists coming up to the course with the same idea about the safety of the location that we had.  By the end of our second round the parking lot was full, the driving range was closed since emergency helicopters were parked on it, hundreds people were camped all over the course in beach chairs and some had brought pillows, blankets and umbrellas.  The golf course snack shop was packed and well over capacity with people drinking beer and watching the news on the flat screen tv.  Those on the lawns all over the rest of the course were getting updates on their cell phones and sharing those updates with everybody around them.  On hole number 7 people had tents set up and acted as a gallery for us golfers, applauding good shots and being politely quiet when we missed pitch shots or par putts.  The atmosphere on the course was that of a “concert in the park” setting and I sensed no panic or distress from the displaced tourists.

The expanse of Poipu and Waimea was easily seen from our location and we kept up on the news by asking the people on the course what they have heard, by the end of our second round the tsunami was suppose to hit Kauai within the half hour but it had already proven to be a “no show” on Hilo where it was suppose to hit first.  Oahu and Maui didn’t have any real activity either, but that did not mean that we were a guaranteed the same.   So we decided to walk another nine holes while the course itself was almost deserted because now the golfers had parked their carts and joined the crowds of tsunami watchers. 

All over the rest of the island coastal roads were closed with Kauai Police standing guard at the roadblocks.  Resorts had evacuated their guests by 9 that morning and all outdoor activities were cancelled leaving some brides stranded that had planned a Saturday Kauai wedding.  Crowds formed outside of Walmart, Home Depot  etc. with people doing just what we were doing at Kukuiolono Golf Course.  Calling to the mainland got cut off to us at times and we all knew our loved ones were watching and worrying back on the mainland. 

As my husband and I were walking our third round of golf it became obvious that the tsunami was going to be a non-event on our island as well.  Thankfully and with good humor people made their way to their cars and filed out of the course and we did the same when we finished our 27^thhole of golf.  We saw as we left the course that the overflow of cars had people parking all over the residential neighborhood of Kalaheo and trucking up to the courses high ground on foot.  I would love to know the final count of people that actually were there that day. 

I can say that there was no panic, lots and lots of Aloha Spirit and good cheer from the tourists who obviously had not planned on this during their vacation.  This is the spirit of Kauai.  Our hearts go out to all those involved in the devastating earthquake and subsequent tsunami that hit Chile and by the end of our day there were efforts to help those in Chile that are in need.  This is also the spirit of Kauai and this is why I love living here.

Murder-Suicide in Lawai 

On Wednesday morning the South Shore was abuzz with an apparent murder-suicide that happened in the sleepy small town of Lawai.  Largely a residential community not much news is made in Lawai which is located right before you get to Kalaheo.

The dead man is Duane Bukoski, 38, of Lawa‘i. The female victim was an acquaintance of Bukoski named Clara Kaneshiro, 43, of Kapa‘a.  After completing their investigation Kauai Police Department said the female victim had been shot and the male had committed suicide.  The females name was originally held back so her husband could be notified.  Police are not speculating on the relationship between the Clara Kaneshiro and Duane Bukoski.

Clara Kaneshiro’s truck had been missing and was discovered at Bukoski’s Lawa‘i residence where both the bodies were also found.

Pirates Of The Caribbean Coming to Kauai?????

The Black Pearl, which is the pirate ship in the widely popular Pirates of the Caribbean movies, is “dry docked” in Oahu at the boat repair facility in Kalaeloa and attracting a LOT of attention.  Aggressive and curious movie fans are lined up outside the gates and security has a strong presence.

What is being done to the ship is not being discussed but the obvious fact is they are working on it for the next picture which is rumored to take place on Kauai and Oahu.

And from the shoreline, visitors can feast their eyes on a close-up view of the Black Pearl’s high, swooping stern — plus get a snapshot of the ship’s actual name: The Sunset.

Kauai Real Estate News

Again this week we had some really good number of completed sales.  The island is packed with people and I’m seeing a lot of properties going “contingent” on our MLS so these hopefully will be future sales to report.  Here is an excel spreadsheet on the activity island last week CLICK HERE

A week ago last Sunday Inter-Island Helicopters was doing a typical tour of the Kalalau Valley when the saw that “SOS” had been scrawled on the sand by the campers in the valley.  They notified the Police Department who sent a rescue specialist to the site.  One of the campers said that he had hiked back into the valley because a man who is in his late 50’s was overdue to come back.  Once there they found him dead in his sleeping bag.  The remains were turned over to the Kauai Police Department and on Wednesday the man was positively identified as Rodney Ahn, 58.  Rodney was a surfer and a waiter here on the South Shore before moving to the north shore.

Have Hands and Car Worked on Simultaneously!

Hair Razors and King Auto Center have teamed up to help the woman of Kauai multi task.  On Fridays between 9 and 1 you can have a technician working on your car and a nail technician working on your fingernails.  This program has been in existence for the last two weeks and is a hit!  The dealership and salon are experimenting with the times that work best.

Hawaii Hotel Occupancy Improves

Hawaii hotel occupancy overall improved 78.4 % February 6 to Feb. 13, this is a 2.1 percentage point increase as compared with the same week last year.

Room rates are still down but the numbers increase is encouraging and the first step toward stabilizing and raising rates.

Occupancy and room rates for the four main Hawaiian islands were as follows:

• Oahu occupancy was up slightly to 82.9 percent, while room rates slid 7.7 percent to $152;

• Maui occupancy jumped 9.1 percentage points to 81.5 percent, while room rates dipped 7.2 percent to $235;

• Kauai occupancy slipped 1 percentage point to 68.1 percent, while room rates dropped 6 percent to $189; and

• Big Island occupancy eased 2.1 percentage points downward to 64.5 percent, while room rates were off 2.1 percent to $170.

Nationwide hotel occupancy was down 1.3 percentage points to 53.7 percent

Hawaii Has Highest “Well-Being” in the U.S. for 2009

 “Individuals wanting to increase their personal well-being and enjoy the highest quality of life in America might want to consider relocating to Boulder, Colo. or the state of Hawaii,” according to the Gallup-Healthways Well-Being Index.

The survey questions were designed to measure how respondents are faring in all aspects of their lives: physically, emotionally, socially and professionally.

The top 10 states for well-being and their survey scores were Hawaii (70.2), Utah (68.3), Montana (68.3), Minnesota (67.8), Iowa (67.6), Vermont (67.4), Colorado (67.3), Alaska (67.3), North Dakota (67.3) and Kansas (67.2).

The bottom five states were West Virginia (60.5), Kentucky (62.3), Arkansas (62.8), Ohio (63.6) and Nevada (63.8).

The top 10 cities for well-being were Boulder (72.5), Holland, Mich. (71.0), Honolulu (70.8), Provo, Utah (70.6), Santa Rosa, Calif. (69.4) Santa Barbara, Calif. (69.3), San Jose, Calif. (69.2), Washington, D.C. (69.1), Ogden, Utah (69.1) and Oxnard, Calif. (69).

This was a national telephone survey completed by 353,849 adults between Jan. 1 and Dec. 31, 2009.

Waimea Town Celebration

Much like the Koloa Plantation Days that we have here in July the town of Waimea is alive with thousands of people turning out for the Waimea Town Celebration.  The weather has been perfect for residents and tourists alike to enjoy canoe races, lei contests, robotic show, music and much, much more.  Kirk Marois owner of Island Taco, Waimeas newest take out eatery, has reported record business and his team is staying super busy keeping up with the thousands of tourists.  Additionally the tour boats have been packed here on the south side enjoying booming business due to the fantastic weather we have been having.  

Kauai Gets Higher Bond Ratings Across Three Categories

Kauai Mayor Bernard Carvalho Jr. said the county has received record high credit ratings from three bond rating companies.  That means the interest rate for a new $120 million bond issuance will be lower than it would have been with the previous ratings and that will translate to a savings of $3 million in gross interest.  Moody’s Investors Service announced the county received an Aa3 rating, up from A1 and Standard & Poor’s Rating Services raised its rating and underlying rating for Kauai from AA- to AA, while Fitch Ratings assigned an AA- rating to the county and upgraded its general obligation debt to AA- from A+. 

Our market also looked good this week, here are the new listings and closed transactions for last week.  For an excel spreadsheet CLICK HERE

Still really chilly here at night and in the early mornings for us but the days have been filled with sunshine and happy tourists wearing shorts and tank tops. We read about the weather in the eastern part of the USA and feel so lucky to be here enjoying beautiful Kauai. Island wide we had many different events happening to celebrate the holiday weekend and Valentine’s Day. Occupancy levels are at very high levels for all over the island. I’m noticing a huge increase in Canadian visitors and I believe it’s due to the new direct flight from WestJet Airlines which offers a non-stop flight Vancouver BC to Lihue.

Third Traffic Fatality in 2010

A 59 year old Kalaheo resident died last Thursday when his Ford Mustang was hit head on by a Kauai Coffee delivery van. The driver of the van, a 61 year old Lihue resident, crossed the center line hitting the mustang head on killing the driver. The accident took place on Kaumuali’i Highway in Lawai. The other two accidents have also been on the Highway in the south shore area.

Helicopter Tour Abruptly Ends In Kalalau Valley

A sightseeing helicopter tour took a different turn last Friday when the pilot of a “Jack Harter Helicopters” noticed that something was not right with the engine. The pilot landed the helicopter without incident or injuries in the Kalalau Valley where another helicopter was dispatched to the scene. The tourists finished out the tour on a different helicopter. The original helicopter was flown out of the valley and has been fixed and is up and running. The company stated that this is first time that this has happened to their company and that all procedures were followed correctly. Additionally the passengers actually got to experience a part of Kalalau Valley which is inaccessible for many and campers in the valley extended “their aloha” to the tourists.

Ready for a Goat Hunt?

If so the State Department of Land and Natural Resources Division of Forestry and Wildlife announces an opportunity for interested individuals to participate in the control of feral goats on Kauai in Waimea Canyon. Weaponry and the amount of goats that you can hunt are limited and interested participants can contact the Lihu‘e office of the Division of Forestry and Wildlife at (808) 274-3433.

New Electrical Company in Town

American Electric Company, located in Oahu, is expanding its residential electrical service to Kauai and the Big Island. This is one of the largest electrical contractors in Hawaii who have done business with the government, commercial buildings, hotels, military and industrial. They have recently expanded to offer residential service. One service they offer is called CurrentSAFE which uses thermographic and ultrasonic testing equipment to detect concealed electrical problems within a home and provide homeowners with a report specifying electrical risk factors such as wiring and outlet problems.

Kauai Real Estate

Looking to buy a resort? The Makena Beach and Golf Resort in Maui will be sold at a foreclosure auction this April. It had been purchased by a Maui developer for $575 million in 2007. The resort’s hotel, formerly known as the Maui Prince Hotel, has been managed by Benchmark Hospitality International since September 17, 2009, under oversight by court-appointed receiver Miles Furutani, who will remain in possession of the resort until it transitions to a new owner and management. The resort which has the hotel and golf courses is to remain operational and was originally bought from the troubled Seibu Group from Japan in June of 2007. My husband and I had taken a weekend trip to this hotel in July of 2007 and loved the location as well as the hotel itself. The hotel was at the end of a long line of Kihei hotels but easily accessible to the great shopping and restaurants that are nearby.

In our local real estate market we had 12 Islander on the Beach units flood the market, they are being sold as short sales. The Islander on the Beach was one of those condo complexes that had caught the uptick of the market just right with many people buying and selling these units over and over again and prices insubstantially escalated. Like the game “Hot Potato” when the market lost the momentum lots of people were left holding something that they just could not hang on to. Financing had been hard to get but not it’s being offered at a 75% loan to value by First Hawaiian, this is good news since the project had not been able to get financing. Questions? Give me a call or email. For an excel spreadsheet of what came on the market and what sold here island wide CLICK HERE FOR SPREADSHEET

Here on Kaua’i I believe we’ve all seen it coming and now it’s officially here.  Kaua‘i County Council on Wednesday passed an ordinance that will bar drivers from using handheld electronic devices.  The law, which would fine drivers $50 for holding and using mobile electronic devices like cell phones, text messaging devices, pagers, digital assistants, laptop computers, video games and cameras, is slated to go into effect on May 3 and enforcement will begin promptly when the law takes effect in three months.

The fine would double to $100 for drivers who violate the ordinance in a school zone or construction area.  By comparison, a similar ban in the City and County of Honolulu has a maximum fine of $67 for the first offense, and the Big Island’s ordinance, which went into effect last month, charges up to $150 for each violation and up to $500 if illegal use of the device causes a crash.

Tourism Numbers Showing Signs of Recovery

Hawaii Tourism Authority is carefully looking at the statistics that inform marketing and other strategies in place for 2010 and into 2011, the year most analysts say will mark tourism’s recovery.

Yes, visitor arrivals and spending numbers were down in 2009, and the Neighbor Islands continue to feel the brunt.  But there also were sectors that showed promise and suggest where growth lies.

1.1 million Japanese still came to the Islands which is one-sixth of the total visitor count.  While down almost 5 percent from 2008, Japanese arrivals grew in the second half of the year. Air seats out of Japan were down only 0.5 percent for the year.

And, there was a 75 percent climb in the number of Japanese (28,185) who chose to stay in a time-share unit.  Good news is vacation rental condo use also was up, with growth in both accommodations coming at the expense of hotels.

The reviving Japanese market, coupled with a 20 percent jump in air seats from other Asian markets, supports the HTA’s belief that Asia remains vital to Hawaii.  Supporting this is the strong yen against the dollar, Japanese and Korean meetings, incentives, conferences and events in Hawaii.  In the Korean market the HTA states is ready to burst, as evidenced by the total number of Korean travelers to Hawaii rose almost 45% in 2009 as more Korean travelers take advantage of the visa waiver status with the United States that is identical to the one Japanese have long enjoyed.  Double digit growth is expected in 2010 with Korean Air’s announcement this last week that they will add 3 extra flights between Incheon and Honolulu.

The international market is not a big player in Kauai tourism but the tourism news that is reported for our state as a whole does play a part in consumer confidence.  Revenue generated from the rise in tourism also benefits the entire state and funds our marketing programs both internationally and domestically.

Locally the Grand Hyatt in Poipu will be undergoing a multi-million-dollar guestroom renovation beginning April 2010. The Poipu Bay Golf Course with close concurrently for greens renovations and other improvements including kitchen and bathroom renovations of the clubhouse resulting in a decision to temporarily close Po‘ipu Bay Clubhouse and Yum Cha restaurant.  Yum Chas is personally one of my very favorite places to eat and I know I will miss going there. 

Homes Bulldozed Along Wainiha Bay

North of Lumahai Beach on the North Shore lies Wainiha Bay where 10 to 15 native Hawaiian families had their dwellings bulldozed Thursday after county officials determined they were illegally erected on county park land along Wainiha Bay and Wainiha River.  Residents of the community and activists say the county does not own the land as it was given to the Native Hawaiian families who have been living in the area for years and farming taro on the mauka side of Kuhio Highway.  This system of living is known as “kuleana lands” tenancy.

As reported in the Garden Island Newspaper the county real-property tax records indicate Rose A. Andrade and others including some Haumea and Harada family members own a .292-acre parcel on Wainiha Bay that is referenced by tax-map-key number in some county communications to a Deilon Haumea, family member and representative for that parcel.  Unofficial reports indicate that coastal erosion may have caused loss of land involving some of the four beach-front parcels along Wainiha Bay, including Andrade’s, possibly causing the land owners to move structures away from the ocean and, possibly, onto county property.  The families owning the property owe around $300,000 in back real property taxes and the county wants to auction off the land.

County officials said in the summer of last year they began receiving complaints about alleged illegal structures and people living in the structures at Wainiha County Park.  Complainants asked that the structures be removed, and county officials conducted a survey of the property and verified that the illegal structures were indeed on county park land, said Tokioka.

Kauai Home Sales See Big Increase

As reported in the Pacific Business News (and on my blog last week!!); sales of single-family homes on Kauai in January increased three-fold, while the number of condominiums sold doubled.

There were 31 single-family homes sold on Kauai last month, more than three times the 10 houses that were sold in January 2009, according to the sales statistics.  There were 14 condos sold in January, twice as many sales as in the same month in 2009.  Prices didn’t fare as well as sales, however.  The median price of a single-family home on the Garden Isle in January was $375,000, a 20 percent drop from $466,785 in January 2009.  And the median price of a condo last month was $204,500, a 19 percent drop from $254,000 in January 2009.  However the first rule in prices solidifying is movement of the current inventory and these are good figures to start the year off.  For a list of what came on the market and what sold island wide CLICK HERE FOR SPREADSHEET

The long awaited arrival of the Living Foods Market opened this last week in Poipu.  Residents and visitors alike have been waiting for a healthy alternative store in the resort area and the location of the new Kukuiula Village is perfect. 

Living Foods Market with Local Resident Will Gill

My husband and I went in on Saturday to check it out and found a clean bustling store offering a coffee/pastry station, take out menu, huge wine selection along with local beers, health foods, produce section and organic soaps and lotions.  The store looked as if it’s still stocking products. 

Living Foods Menu

The menu looked really good (especially the pizzas!) and food could be eaten on tables provided outside on the interior section of the shopping village.  It was a very nice setting and a welcome addition to our community. 

Banking In Hawaii 

61% of banking done in our State is by First Hawaiian or Bank of Hawaii, they also both carry a four star rating nationally.  Having learned their lesson during the boom and crash of the 1980’s these two banks did not make loan choices that had gotten them into trouble several decades ago.  Not true for Central Pacific Bank which carries a 2 star rating and wrapped up the worst year in its 56-year history by losing $78 million in the fourth quarter, contributing to a staggering $292.8 million loss for 2009.  In its earnings statement, Central Pacific Bank said it sold $204 million worth of troubled loans in California and Hawaii in the fourth quarter at a 19 percent discount from their loan value. Of those loans, $53 million were listed as nonperforming.  

Despite dumping millions in bad loans in 2009, the percentage of nonperforming assets held by the bank rose from 8 percent in the third quarter to 10.6 percent in the fourth, reflecting “further deterioration in the Hawaii construction portfolios.” During the quarter, the bank added $57 million in Hawaii residential construction loans and $50 million in commercial loans to its lists of nonperforming assets.  Central Pacific is closing two of its Honolulu branches.  

Hotel Occupancy In Hawaii

Occupancy at Hawaii hotels inched up 2.8 percentage points to 73.8 percent for the week ending Jan. 23.  Comparatively mainland hotel occupancy remained flat at 46.8 percent, while room rates were off 9.4 percent to average $93 a night.  3 out of the 4 main islands were up in occupancy but only Kauai was up in its room rates by 9.5% leading the state in its average nightly rate at $212.  Hotel numbers will be reflective on the “condotel” numbers as they will follow the same trend.

Occupancy and room rates for the four main Hawaiian Islands were as follows:

• Oahu occupancy grew 5.1 percentage points to 78.1 percent, while room rates dove 9.5 percent to $146;

• Maui occupancy also grew 5.1 percentage points, to 77.8 percent, while room rates plummeted 21.2 percent to $202 

• Kauai occupancy grew by 1.8 percentage points to 67.9 percent, while room rates jumped 9.5 percent to $212; and

• Big Island occupancy slipped 7.7 percentage points to 56 percent, while room rates dove 9.2 percent to $155.

Huge Week In Kauai Real Estate Sales

January 2010 property sales for the island of Kauai ended at a staggering 160% gain for closed transactions compared to the month of January in 2009.  For the island last week we had 22 sales that closed escrow with 11 of those 22 being Short Sales or REO’s.  Overall the month of January had 52 sales compared to January of 2009 where there were only 20 sales.  Obviously the combination of the first time home buyer credit, low interest rates, tourism slightly turning around and short sale or REO low priced opportunities are making a very positive impact.  If you would like more information please contact me.  For a complete list of what came on the market and what sold here on the island CLICK HERE FOR SPREADSHEET

Two Fatal Crashes On the South Shore

A crash between a motorist and a motorcyclist occurred last Friday afternoon at 4 pm at the highway and Maluhia Road (Tree Tunnel Road).  The 46 year old motorcycle rider was pronounced dead after being transported to Wilcox hospital.  The driver of the sedan was turning left into tree tunnel road when she struck the Lihue man on the bike causing him to be thrown from his bike; he was not wearing a helmet.

In a separate incident, the Wednesday this accident, a pickup truck being driven by a Omao man crossed the center line and caused a head on collision which killed Tomas Garcia of Kapa’a who was an employee of and electric company.   This accident occurred on the highway as well by Kahili Mountain Park.  It is not known at this time if speed, drugs or alcohol are involved. 

Disney’s first resort in Hawaii has a name: Aulani 

The Disney resort, which is under construction at Ko Olina Resort on Oahu, is scheduled to open in the fall of 2011.  The name Aulani means “the place that speaks for the great ones,” or “the place that speaks with deep messages,” You can check out the progress on this resort by going to its website, www.disneyaulani.com which will provide updates on the resort’s development. The company hasn’t said how much the project costs but estimates put it at about $800 million.

When completed, the new resort will have 360 hotel rooms and 481 two-bedroom equivalent Disney Vacation Club villas. It will also include an 18,000 square-foot spa, two restaurants, 14,545 square-foot conference center, and 48,685 square feet of outdoor venues, including pools, hot tubs, a snorkeling lagoon and a variety of programs for children.

Maui Time Share Holders Taxed Out

A four-year-old tax on time shares on Maui is enraging property owners who say they are being hit with dramatically higher bills than local residents and resort property owners are paying.  Maui County created a separate tax rate for time share owners and they are not happy about it at all.  This graph will show the difference between the two categories.

 New Flights Being Added by Hawaiian Airlines!

Great news!  This June Hawaiian Airlines is offering new flights between Hawaii and the Mainland:

HA1 LAX-HNL  8:35 a.m. depart            11.15 a.m. arrive
HA2 HNL-LAX  1:15 p.m. depart           9:30 p.m. arrive
And Hawaiian Airlines Will Open These Flights For The Summer
HA3 LAX-HNL  10:45 a.m. depart  1:15 p.m. arrive  (June 18-Sept 6)
HA4 HNL-LAX  10:30 p.m. depart  6:55 a.m.   arrive  (June 17-Sept. 5)
HA23 OAK-OGG 12:20 p.m. depart 2:20 p.m. arrive  (June 18-Sept. 6)
HA24 OGG-OAK  9:35 p.m. depart   5:30 a.m. arrive   (June 17-Sept 6)
HA37 SAN-OGG  10:35 a.m. depart   1:05 p.m. arrive (June 18-Aug 24)
HA38 OGG-SAN 10:30 p.m. depart   6:35 a.m. arrive  (June 17-Aug 23)

Kauai Real Estate News
In real estate news I saw that a exclusive resort on the Big Island is claiming credit for the “biggest residential sale in Hawaii in 2009”.  A five-bedroom, 8,630-square-foot oceanfront home at Hualalai Resort sold for $26.25 million.  However here on Kauai we had a residential sale for $28 million recorded in November of 2009!  This was a 174 acre with a 15,000 square foot 6 bedroom house with 8.5 bathrooms on Papa’a Bay on the north shore.  What is noteworthy is the total 2009 sales at Hualalai Resort, which is north of Kailua-Kona, were more than $150 million for 2009.  So what sold last week here on Kauai?  For an excel spreadsheet on our activity CLICK HERE FOR SPREADSHEET

On Thursday night saw the astonishing Shanghi acrobats perform at the Kauai War Memorial Convention Hall in Lihue.  The Hall has the capacity to hold up to 1,092 and they were bringing chairs out to fill up the back portion of the room!  Born out of a tradition dating back 2,500 years, the new 2010 SHANGHAI CIRCUS combines artistry with athleticism.  The 2 hour show featured contortionists, plate spinners, traditional dragon dancers, tightrope walkers and more!  At one part of the show they had pulled four men from the audience to come up on the stage where they contortion-ed them into position to form a human table!  These acrobatic performers are from the People’s Republic of China and make yearly performances here in Kauai.  We paid $17.50 for the regular seats and the “gold” seating was $30.00 which gets you closer to the stage.  It was well worth the money and parking was an easy in and out.  I give “two thumbs up” to seeing this if you are in town this time next year.

Statewide Hotel Occupancy Number Up

Despite nationally hotel occupancy dropping 1.7% Hawaii statewide hotel occupancy grew 2.8% points to 65.4 percent for the week ending Jan. 9 as compared with the same week in 2009, however, room rates dropped 8.6 percent to average $183 a night. 

Occupancy and room rates for the four main Hawaiian Islands were as follows:

• Oahu occupancy was up 3.5 percentage points to 71.4 percent, while room rates fell 6.9 percent to $161;

• Maui occupancy increased 6.6 percentage points to 65.8 percent, while room rates dived 13.5 percent to $236

• Kauai occupancy remained flat at about 53 percent, while room rates slipped 7.5 percent to $194; and

• Big Island occupancy slid 3.8 percentage points to 51.4 percent, while room rates edged downward 6.5 percent to $171. 

Living Foods Market Update 

The Living Foods Market gained much attention with the publication that they would open in the new Kukui’ula shopping center on January 20^th2010.  The store has fantastic front row placement in the shopping center and it’s obvious they are not going to open this Wednesday.  I personally called and spoke with the owner Jim Moffatt who said they are committed to the opening date of January 27^th, that he has his refrigeration units in and perishables on the way so he is committed to that date.  He said he has numerous plans for the south shore whole foods store including gourmet delivery. 

 Correctional Health and Emergency Medical Services Workers Receive Pay Cuts and Furlough Days

Joining the Teachers here on Hawaii who have imposed “Furlough Fridays” the United Public Workers, which consist of 2,800 members are the latest to receive pay cuts and furlough days for the next 18 months, as a result of an arbitration panel’s final decision.  This news was released by Gov. Linda Lingle’s office announced late Friday.

The unit does not have the right to strike because it includes essential workers in jobs that require round-the-clock staffing.

The pay cuts and furloughs are as follows:

• Guards at Hawaii State Hospital, state prisons and the Hawaii Youth Correctional Facility will receive up to a 5.45 percent pay cut, effective Jan. 1, 2010 to June 30, 2011.

• Hawaii Health Systems Corporation:

Up to 14 furlough days, effective January 1, 2010 to June 30, 2010. Then, up to 24 furlough days, effective July 1, 2010 to June 30, 2011.

• City Emergency Medical Services:

No furloughs in fiscal year 2010 but up to 21 furlough days, effective July 1, 2010 to June 30, 2011.

Real Estate News

The occupancy here in Kauai is way up, I see a huge difference from this time a year ago.  Some hotels and condo resorts are at 100% occupancy at times.  Lots of visitors means more exposure to our Kauai real estate.  So what happened last week?  For an excel spreadsheet on what came on the market and what sold last week island wide CLICK HERE

For the second time in a week, a Hawaiian Airlines flight has been diverted because of a passenger disturbance. Flight 17 from Las Vegas to Honolulu was diverted to Los Angeles International Airport early Friday morning because of an incident involving a woman being harassed by a male passenger onboard,” Hawaiian spokesman Keoni Wagner said in a statement. “Law enforcement officials met the flight on arrival and interviewed the parties. The male passenger was removed from the flight and the flight resumed to Honolulu an hour and 10 minutes later.” On Wednesday, two F-15 fighter jets intercepted and escorted a Hawaiian flight back to Portland, Ore., after a passenger allegedly disrupted the flight. Flight 39, bound from Portland to Kahului, Maui, landed safely, refueled and resumed its route after two passengers, a man and a woman, were removed.

 Hawaiian Airlines Sets Company Record

Hawaiian Airlines carried 8.3 million passengers in 2009, a company record which is a 6.2% increase over the number of passengers in 2008.   Surprised? I am given the news we’ve heard all last year.  In 2009, Hawaiian saw its revenue passenger miles grow 3.7 percent to 8.1 million, the number of available seat miles increase 2.2 percent to 9.7 million. In both December and the fourth quarter, Hawaiian posted increases in passenger counts, revenue passenger miles and load factors.

Traffic Mess in Kauai is Here to Stay

The Wailua Bridge closed on Wednesday and will remain closed until July, at that time a new Acrow panel bridge will be in place. The bridge is on the ocean side of the highway (this is the bridge that goes off to the right when you are crossing the highway). Both existing lanes of Kuhio Highway that cross the river will remain open but there may be periodic lane closures to accommodate construction. The new bridge will consist of two lanes for northbound traffic. A bike/pedestrian path will also be added on the ocean side of the new bridge. Once the new bridge is open, the historic Wailua Bridge, which is part of Kuhio Highway and which has been renamed the Bryan J. Baptiste Memorial Bridge, will consist of two southbound lanes of traffic.

Good news for the fall opening but for now this has become a nightmare for people who are stuck trying to get from one side of the island to another. If you need to travel through this area and have any time constraints be very careful. This project is costing $25 million with Federal highway funds covering 80 percent; state funds will cover the rest.

Single Engine Plane Crashes on Oahu

Police and fire rescue personnel have sighted the wreckage of a single-engine, fixed-wing plane near the top of Lanipo Ridge in East Honolulu and are attempting to reach the site to look for possible survivors. Federal Aviation Administration spokesperson Ian Gregor said that a Piper Cherokee was en route from Lana’i to Honolulu when air traffic controllers lost radar and radio contact with the plane around 1:45 p.m. Gregor said the pilot did not issue a mayday and it is not known if the plane crashed or if the pilot made a safe landing. A group of hikers on the Wiliwilinui Trail reported hearing a crash and seeing flames. One of the hikers on the Lanipo Trail said she heard the plane’s engine having difficulty before the crash. “It sounded like a backfire,” said the hiker, who asked not to be identified. Another hiker, who also asked not to be identified, said she saw “big flames” followed by the sound of popping.

Kauai Real Estate News

As you will see on the spread sheet we had quite a few closings last week here on Kauai. The national home statistic news is; contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors®. The Pending Home Sales Index is a forward looking indicator based on contracts signed in November which fell from 114.3% to 96.0% but we’re still way ahead of November of 2008 when it was 83.1%. According to Lawrence Yun, the National Association of Realtors chief economist, the drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels show the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.” For an excel spreadsheet on last weeks new listings and closed transactions CLICK HERE FOR SPREADSHEET