May 2018 Whaler Update

Whaler Update

May 2018

LOCAL MAUI NEWS

Aloha Fellow Whaler Owners,

We were treated to one of Japan's tall training ships earlier this month. The Kaiwo Maru ( King of the Sea) , was celebrating the 150th anniversary of the gannenmono or first-year men, of Japanese immigrants to Hawaii. * Hawaii may become the first state to ban sunscreens containing oxybenzone and octinoxate, two ingredients that have been found to harm coral and other marine life. Senate Bill 2571, awaiting Gov. Ige's signature, would make Hawaii the first state to implement the ban, which would take effect January 1, 2021. Hawaiian Airlines, Outrigger Hotels & Resorts, and Aqua Aston Hospitality have all made deals with reef-safe sunscreen retailers to offer to their customers.

For the first time since 2007, the Annual Hawaii Bowl will not take place on Christmas Eve this year. Instead, the 2018 college football bowl game will be played on Saturday, December 22nd at Aloha Stadium. * Turning to the

yummy department ... if you've enjoyed Bubbies Homemade Mochi Ice Cream here on Maui ... now you'll be able to get it all over the mainland thanks to a new deal with Whole Foods Stores. That self-serve freezer, referred to as "mochi bars," will also be available in some locations.

CURRENT MARKET ANALYSIS

The son of Star Trek creator Gene Roddenberry plans to build a nearly 8,000-square-foot home near Kahekili Beach, also known as Airport Beach. Maui County Urban Design and Review Board approved design plans for Rod Roddenberry's construction of an oceanfront home at 10 Kai Ala Place in Kaanapali. Will he boldly go where no man has gone before? Well his plans call for a 7,825 sq ft home with a 770 sf garage, a 658 sf ohana unit, a 100 sf pergola, 318 sf cabana, 219 sf covered lanai, and a 6 foot deep infinity pool and spa. * The Blackstone Group secured a $510 million mortgage from JP Morgan Chase and Deutsche Bank for its $1.1 billion purchase of the Grand Wailea Hotel on Maui, which recorded earlier this month.

Hawaii's resort real estate market recorded the highest number of closings since 2014 in the fourth quarter of 2017, while statewide sales for all of 2017 grew by 16% to the highest number of sales since the recession.

Condominium sales on Maui soared last month compared to a year ago. There were 174 condominium units sold in April, a 48.7% increase from 117 units sold in April 2017. The median sales price of those units was $508,513 ... a 3.8% increase over the median price of $490,000 in April 2017. The median sales price of a single family home of $725,000 was a 7.7% more than the median price a year ago of $673,000. While prices were up, the number of sales decreased 7.1% from 98 homes sold in April last year, compared to 91 homes last month.

Now l et's take a look at The Whaler :

Status	Unit	Bd	Ba	List $	Sold $	Close
Active	269	1	2	899,000
Active	508	1	2	1,150,000
Active	370	1	2	1,198,000
Active	274	1	2	1,198,000
Active	573	2	2	1,650,000
Active	102/104	2	2	2,975,000
Active	552	2	2	3,250,000

Escrow	364	0	1	650,000
Escrow	1264	0	1	775,000
Escrow	208	1	2	1,100,000

Sold	757	1	2	1,235,000	1,050,000	01/04/18
Sold	1060	1	2	1,400,000	1,180,000	02/12/18
Sold	1223	2	2	2,395,000	2,150,000	04/02/18

Figures from Realtors Association of Maui

TOURISM

The economic outlook for Hawaii is positive, with the state's expansion "showing no signs of letting up" according to the University of Hawaii Economic Research Organization (UHERO). In fact Hawaii tourism is hurtling toward a 10 million-arrivals benchmark this year. Visitors to Hawaii spent a total of $4.8 billion in the first quarter, an increase of 10.1% compared to the first quarter of 2017. Maui visitor spending increase 12.7% to $1.46 billion in the first quarter this year. Arrivals to Maui also increased 7.2% to 708,003 in the first quarter. Hotel occupancy rates have averaged more than 80% in the first quarter ... levels not seen since the mid 2000s. This boost has allowed hotels to raise room rates by double digits. So with packed hotels and more and more tourists arriving ... how are we sustaining it? Home vacation rentals are producing a boom in accommodations supply.

But not all home and condominium vacation rental programs are created equal. You have to balance the price with the services your guests will receive in order to become repeat clients. Believe me, I get asked about this all the time. You own a Maui property but only use it a few times a year ... how can you offset the cost of ownership ... where do you start? Personally, I keep all my vacation rentals with Maui Beachfront Rentals. Sure I could use any program on the Island ... but I've found I can keep my guests happy by having them avoid all those inflated fees by travel agencies, and having a local staff that's available to them 24/7. They get more bang for their buck ... fully equipped kitchens, laundry, free parking, and amenities. I get a lot of repeat guests. AND MBR takes all the hassle out of it for me. They cover all the bases plus extra advertising on sites like VRBO, HomeAway, Flip Key and others ... all at no additional cost to me.

TRAVEL

Hawaiian Airlines flew a record-breaking 2 million passengers to Hawaii last year. And now Hawaiian has started new daily nonstop flights between Maui and San Diego International Airport. They've been flying from San Diego to Honolulu since 2001. The airlines will expand its presence in California at the end of this month when it launches daily service between Honolulu and Long Beach Airport.

Southwest Airlines says it plans to service four Hawaiian airports, Honolulu on Oahu, Lihue on Kauai, Kona on the Big Island, and Kahului Airport on Maui. They've also announced that they will begin service to the Islands from four California cities: Oakland, San Diego, San Jose and Sacramento. The airline still hope to launch ticket sales by the end of this year, or the beginning of next.

United Airlines is bolstering its onboard menu of food and beverage in time for the busy summer travel season. United will be rolling out a beer no competitor has on board - Stella Artois.

MORTGAGES

Dean Rathbun of Avis Mortgage can share that at this month's Federal Reserve meeting, the Federal Open Markets Committee voted to keep rates the same and maintain the target range at 1.5% to 1.75%. Mortgage rates are not directly tied to the Fed's benchmark rate, but they do tend to be influenced by them. * Freddie Mac rolled out conventional mortgages with 3% down more than three years ago for qualified applicants. Now Dean says Freddie Mac will introduce the HomeOne mortgage to compliment their Home Possible products. the 3% down loans will be offered for conforming fixed rate mortgages secured by a one-unit primary residence, and at least one of the borrowers must be a first-time buyer.

Mortgage rates reversed course and soared to the highest averages in seven years this past week. But just how much does a slight change in mortgage interest rate really change your payment and minimum qualifying income?

Dean offered this chart as an example of a $550,990 home with a 20% down.

MAUI HAPPENINGS


	Maui Film Festival

6/1-3: 14th Annual Waa Kiakahi Kaanapali Beach

6/2: Lahaina Shingon Mission Obon Dance 7:30pm

6/2-3: 4th Annual Maui Jim Ocean Shootout waterfront

Kaanapali Beach Hotel

6/3: First Sunday Jazz Concert 11am Queen Kaahumanu Cntr

6/7-10: Kapalua Wine & Food Festival tix on sale now

6/8: World Oceans Day Activities

6/9: Puunene Nichiren Obon Dance 7pm Kahului

6/13-17: Maui Film Festival Schedule/Tix

6/15: Wailuku Jodo Mission Obon Dance 7:30pm

6/15-16: Duo Diorama Violin & piano Info

6/16: Wailuku Shingon Mission Obon Dance 7:30pm

6/17-18: Na Kamehameha Commemorative Pau Parade & Hoolaulea

6/17: Hoolaulea under Banyan Tree

6/18: Parade on Front Street 9:45am

6/22: Kahului Jodo Mission Obon Dance 7:30pm

6/29-30: East Meets West Jazz & Dance Festival Details

Maui OnStage Iao Theater tickets

5/25-27: Maui Chamber Orchestra - Musicals

7/13-8/5: Singin' In The Rain

Maui Theater Monday, Tuesday, Thursday Friday tickets

"Ulalena" Hawaiian Show 5pm

"Burn'n Love" Relive Elvis in Hawaii Concert 7:30pm

Maui Arts & Cultural Center
tickets

5/25: Artist to Artist: Henry Kapono & Malani Bilyeu

6/02: MAMo at the MACC wearable art show

6/09: ArT=Mixx: SUPERNOVA

6/10: The Crystal Method electronic music

6/15: Sylvia St. James gospel, blues, jazz singer

6/16: Taime "Elemental" CD release tour

6/22: Naomi Shihab Nye and Cathy Song poetry

6/23: Zenshin Daiko's 19th Annual Taiko Festival Concert

6/24: 27th Annual Ki Ho 'alu Guitar Festival slack key

6/30: Intentions of Portraiture with Melissa Ann Pinney

and Documenting History through Photography with Ai Iwane

Mulligans On The Blue Tuesdays

6:30 pm Free Magic Show

9:00 pm Open Mic Comedy

As you read above, Maui is teeming with tourists who are spending more and staying longer. Many of them want to own a piece of paradise that they can come back to again and again. While still low, mortgage rates are rising and inventory for sale is still tight. If you're even thinking about selling your property, give me a call and I'll give you a confidential no obligation estimate of your property's value. Likewise, if you're considering adding to your real estate portfolio, you might want to lock in those interest rates now before the Fed raises their rates again. As a fellow Whaler owner with over 30 years experience in the Maui market, you can't put yourself in better hands. Remember, we are the only Berkshire Hathaway Real Estate Brokerages on Maui. Our offices are located in Lahaina-Kapalua and Wailea-Makena. I'm available to you 7 days a week.

John

Broker/Owner