March 2018 Whaler Update

Whaler Update

March 2018

LOCAL MAUI NEWS

Aloha Fellow Whaler Owners,

My local news has a little something for everyone. Our foodie friends on the mainland can look forward to enjoying some items that up 'til now were only available here. The folks at Shaka Tea will begin national distribution this May. They use Mamaki leaves which are only found in the Hawaiian Archipelago. Also, Maui-based Fork & Salad Restaurant just signed a deal to franchise on the mainland. * Golfers have a "refresher course" coming their way (sorry, couldn't resist). After the PGA's Sentry Tournament of Champions kicks off the 2019 season, the Plantation Course at Kapalua will get a multimillion-dollar renovation. They also plan to renovate the Plantation Golf Ship, relocate the Bay Course Operations and Golf Shop to the Village Center, and redesign the Kapalua Golf Academy practice facility.

And we turn to the topic of money . State tax collections are expected to come in about $50 million higher than previously forecast for this fiscal year, giving legislators a little more room to work with as they craft the overall budget in the coming weeks. * But let's move on to the big money - Forbes' 2018 ranking of the world's billionaires. Facebook CEO Mark Zuckerberg, who owns hundreds of acres of land in Hawaii, held on to his #5 ranking. eBay founder Pierre Omidyar, Hawaii's only full-time resident on the list to #145 this year with a net worth of $10.5 billion, from #166 in 2017 when he had a fortune of only $8 billion.

Some good news for our friends under the sea. The Hawaiian monk seal is one of the most endangered marine mammals in the world. BUT their count is going up ... a steady 2% since 2013. * There's a bill making its' way through the state Legislature that would protect sharks and expand protections to all rays within state waters. Why rays? They are vulnerable; long-living, slow-growing and begin reproducing at an advanced age with relatively few offspring annually.

CURRENT MARKET ANALYSIS

Nationally homeowners with mortgages have seen their equity increase 12.2% year over year, according to CoreLogic's new Home Equity Report. Homeowners gained more than $15,000 in home equity between the fourth quarter of 2016 and the fourth quarter of 2017. That's the highest growth in home equity in four years. Meanwhile, the number of borrowers who are in a negative equity territory is decreasing. That figure dropped to 2.5 million homes, or 4.9% of all mortgage properties in the fourth quarter of 2017.

Maui real estate sales rose last month across the board. Single-family home sales saw an increase of 50.8% to 95 homes, compared to 63 in February 2017. The median price of those homes was $685,000 last month, an increase of 1.8% from $672,575 in February 2017. Condominium sales on Maui increased 8.9% to 122 units sold last month, from 112 sold during the same month last year. The median price of a condo increased 1.6% to $472,500 from $465,000 in February 2017.

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

Status	Unit	Bd	Ba	List $	Sold $	Close
Active	364	0	1	650,000
Active	269	1	2	899,000
Active	370	1	2	1,198,000
Active	1169	1	2	1,250,000
Active	274	1	2	1,500,000
Active	573	2	2	1,650,000
Active	102/104	2	2	2,975,000
Active	552	2	2	3,250,000

Escrow	1264	0	1	775,000
Escrow	508	1	2	1,150,000
Escrow	1223	2	2	2,395,000

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

Figures from Realtors Association of Maui

TOURISM

Hawaii's tourism industry continues to see success with increased air service, sold-out hotel occupancy levels and a record number of visitors spending a record amount of money. The millennial demographic poses some interesting challenges. There are the millennial backpackers interested in experiential tourism. Then there are the millennials who'll only stay in the best suites and shop at Louis Vuitton. The Hawaii Tourism Authority is going to try and lure more of them from New York - through a widespread social media marketing campaign.

You already know last year we broke all kinds of tourism records, but what about this year? The figures for January have come out ... and they're crazy good. Visitors to Hawaii spent a total of $1.69 billion in January - the highest statewide total ever recorded for a single month in Hawaii's history. On Maui, visitor spending rose 18% to $548.5 million, the highest monthly total ever recorded! Arrivals on Maui increased 5.6% to 230,581. There was also a 5% increase in visitor days and higher average daily spending per person.

The House Finance Committee passed Senate Bill 648 SD1 HD1, which increases the amount of the Transient Accommodations Tax or "TAT" revenues for the neighbor islands. For Maui that means there's an additional $15 million in TAT revenues, going from the current $23.4 million to $38.3 million.

I get asked all the time for a recommendation for a great vacation rental company, and my answer is always the same Maui Beachfront Rentals. That's where I keep my vacation rentals, and my guests save money by avoiding all those inflated fees by travel agencies. Their service doesn't stop with the booking - locally based staff is available 24/7. For me, it means no hassles. No more trying to cover all my bases with a local rental agency here plus extra advertising on sites like VRBO, HomeAway, Flip Key and others to try and get a decent return. MBR covers it all and at no additional cost.

TRAVEL

Hawaiian Airlines new purchase of 10 Boeing 787 aircraft could make the Hawaii carrier the first to bring the Aloha to London! Don't start packing your bags right away ... it's still a long ways off. Hawaiian Airlines is doing a booming business - with a 6.4% increase in passenger count so far this year.

Air Canada will launch seasonal flights to Kauai starting in December, and is also doubling the frequency of its flights from Western Canada to Hawaii - Honolulu, Maui, and Kona.

Southwest Airlines has been issued a temporary permit at Honolulu's Daniel K. Inouye International Airport. While that's all they can confirm at this time, hopes are high that they will launch ticket sales in Hawaii sometime this year. If you've ever flown on Southwest, you know about the optional Early Boarding Pass. Well now, United Airlines is rolling out their new product - Priority Boarding. Fees will start at $9.

MORTGAGES

Dean Rathbun of Avis Mortgage wanted to share some information on a bill making its' way through the Senate: The Economic Growth, Regulatory Relief and Consumer Protection Act, S 2155. The bill could open up more lending to households aspiring to become homeowners. The bill includes a requirement that Fannie Mae and Freddie Mac accept rent and utility payment history as part of loan applicants' credit scores. The bill also reduces some regulatory burdens on credit unions and smaller community banks, which are often the main source of home mortgage financing in rural areas. The House has already passed its version, The Financial Choice Act. If the Senate passes its version, the bills will have to be reconciled.

According to Dean, mortgage rates have been inching higher for the last 9 weeks, but borrowers finally got some relief this week on mortgage rates. The 30-year-fixed-rate mortgage posted its first week-over-week decrease of 2018. Dean still feels that the strong job growth numbers assures at least 3 interest rate hikes by the Federal Reserve this year.

MAUI HAPPENINGS


	*Matsuri Festival*

On Sale Now: Kapalua Wine & Food Festival tickets

3/23: Tom Arnold LIVE at The Dirty Monkey Lahaina tickets

3/24: Keiki Tilapia Fishing Tournament Kaanapali Golf Resort 7:30am

3/31-4/1: Prince Kuhio Festival Lahaina Banyan Tree 9-5

4/01: Jazz Maui's First Sunday Concert info

4/6-7: Chinese Kite Festival details

4/13-14: Maui Hawaiian Steel Guitar Festival free

4/21: 26th Annual East Maui Taro Festival schedule

4/27 & 5/3-5: 18th Annual Maui Matsuri Festival details

Free Movie Night Under the Stars at Whalers Village 5pm

3/20 "Turbo"

3/27 "Ice Age"

Maui OnStage Iao Theater tickets

3/24-25: Maui Chamber Orchestra - Americana

4/27-5/13: Of Mice and Men

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

3/22: Complexions Contemporary Ballet: Stardust a tribute to David Bowie

3/23: An Evening of Mindfulness with Steven Snyder. Mindfulness Movie

3/28: Kenny Broberg classical pianist

3/29: An Evening with Kuana Torres Kahele

4/01: Color Festival Hawaii music, food & Color

4/06: Brother Noland Jawaiian music

4/06: Starry Night Cinema: The LEGO Batman Movie

4/07: 30th Annual Pundy Yokouchi Golf Tournament

4/08: Jackson Browne concert

4/12: Vieux Farka Toure' Mali music and dancing

4/13: Three Maui Divas concert

4/18: Bill McKibben environmentalist author

4/19: Artist 2 Artist: Henry Kapono & Jerry Santos

4/20: Primus alt/punk

4/28: Cazimero Lei Day Concert

Mulligans On The Blue Tuesdays

6:30 pm Free Magic Show

9:00 pm Open Mic Comedy

Easter Egg Hunts

3/30: 8am Lahaina Regional Park

3/30: Noon Kihei Kalama Park

3/30: 4pm Pukalani Community

3/31: 10am Keopuolani Park

4/01: 9:30am King's Cathedral, 777 Mokulele Hwy

In addition almost all Resorts hold an Easter Egg Hunt and have Sunday Brunch. Many Churches also hold Easter Egg hunts on their grounds.

Maui is very busy right now. Thought things would slow down at the start of the new year? No Way. As you read above, tourism is breaking all kinds of records and real estate sales are up across the board. So many visitors who come here to vacation, want to get in on the dream of owning their own piece of paradise, and inventory is limited. 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 low 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