Hawaii Randy's Real Estate Opinions: March 2008

Below is a copy of the press release I sent out to the media. 

Our community paper posted a story on the front page about our youngsters.  http://www.honoluluadvertiser.com/apps/pbcs.dll/article?AID=/200803260100/COMPUB0301/803260312

On a personal note: My oldest son Daniel played for the Mililani High School team and came home with the team state title and my youngest son Jacob tied for the 1st grade state title.

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PRESS RELEASE:

New Scholastic State Chess Champions Crowned.

Hawaii's best and brightest converged on Windward Community College.  Friday and Saturday March 14th & 15th saw a larger than normal amount of higher level thinking happening in the Hale Akoakoa Building. No, it was not college students taking finals, it was about 160 of the top scholastic chess players in the state testing their mettle against each other.

The field was made up of youngsters as young as kindergarten and as old as 12^th grade.  Several state titles were on the line and the competition was fierce.

The team results ended with Mililani Schools the big winners.  They took titles in three categories:  Mililani High School for the first time in school history won the High School State Title (K-12 Division).  Mililani Middle for the 2^nd straight year took the K-8 Division.  In the K-6 Division Mililani Ike and Kamehameha Schools finished as Co-Champions.  On computer determined tie breaks Kamehameha won the honor of keeping the perpetual trophy until next year.  The K-6 Division title was won by The Children's House ending the Kamehameha dynasty of the last three years.

In individual competition, Robert Lau and Ryan Jose`Palomares both from Mililani High School finished the day undefeated and will reign as 2008 High School Co-champions.  Robert & Ryan will have a playoff match in the next couple of weeks to determine who will represent Hawaii at the Denker Tournament of High School State Champions, August 2-5, 2008 in Dallas, Texas.  The Denker winner will be awarded a four year scholarship to the University of Texas at Dallas, along several other prizes.

The results for the other age groups and the grade level champions can be viewed on the Hawaii Chess Federation website http://www.hawaiichess.org/ under tournament results.  There is also a Champions page for historical information.

On April 12, 2008 the State Girl's Championships will be held to determine our representative to the Susan Polgar National Invitational for Girls, to be held July 27 - August 1 at Texas Tech University (TTU) in Lubbock, Texas. Texas Tech University agrees to award a four-year academic scholarship to the highest finishing player who has not graduated from high school by August. 
 The Polgar event faces off the top girl from each state. Unlike the Denker Tournament of High School Champions, the participants of the Polgar DO NOT have to be High School students. 

The tournament organizer for the 2008 State Championships was former legislator and owner of Alakai Engineering; Guy P. Ontai our current State Scholastic Director for the Hawaii Chess Federation.  Guy was assisted by Randy Prothero, an area REALTOR® with Century 21 Liberty Homes and the president of the Hawaii Chess Federation.

Results from the 2008 Hawaii State Scholastic Chess Championships:  http://www.hawaiichess.org/Tournaments.html

Local schedule and additional information at the Hawaii Chess Federation's home page, http://www.hawaiichess.org/.

The Hawaii Chess Federation is the state affiliate of the United States Chess Federation, the governing body of chess in the United States.

This Mililani sales report covers zip code 96789 which covers both the Mililani Area (which includes Mililani Town, Launani Valley, Waipio Acres and Melemanu) and Mililani Mauka.

Mililani real estate is still moving strong.  We are still seeing good real estate activity in the Mililani area.  With low interest rates and some selection in the inventory, buyers are still able to buy the home of their dreams, while sellers were seeing their properties move if priced and marketed correctly.

A few dynamics in the area:

• Castle and Cooke is almost finished with new home construction in Mililani Mauka.
• We have continued to see troop movements at Schofield Barracks, helping to turn some of the inventory turning in Mililani.

Single Family homes: Average sales prices in Mililani Town and the valleys stayed consistent for the last 12 month with the pervious 12 month period, while Mililani Mauka had a slight increase over the previous period.  Year to date Sales volume in the Mililani Town and the valleys have dropped, while inventory levels have remained reasonably low; accounting for the stability in prices.  Along with mortgage rates remaining low, buyers and sellers will continue to find the Mililani real estate market attractive.

Condo and townhouses:  Sales volume for the last 12 month period was down from the previous 12 months in Mililani Town and the valleys while Mililani Mauka sales volume stayed consistent with the previous 12 month period..  Average sales prices during the last 12 months in Mililani Mauka stayed consistent with the previous 12 months.  Mililani Town and the valleys saw a slight increase in the average sales price.

Currently Active for Sale (March 29, 2008): 

• 50 Single Family Homes - Mililani Area
• 39 Single Family Homes - Mililani Mauka
• 85 Condos/ Townhouses - Mililani Area
• 33 Condos/ Townhouses - Mililani Mauka

Currently in Escrow (March 29, 2008):

• 20 Single Family Homes - Mililani Area
• 16 Single Family Homes - Mililani Mauka
• 23 Condos/ Townhouses - Mililani Area
• 14 Condos/ Townhouses - Mililani Mauka

*These numbers were taken from the Honolulu Board of Realtors MLS system and are deemed to be accurate, but not guaranteed.

Mililani Links:

• Mililani Town Association: http://www.mililanitown.org/
• Mililani Drug Free: http://www.Mililanidrugfree.org/
• Mililani Chess Club: http://www.mililanichess.org/
• Mililani Real Estate: http://hawaiirandy.com/
•   
• Mililani Blog Posts:
• Welcome to Mililani - Part 1 the Shopping Centers
• Welcome to Mililani - Part 2 the Planned Community
• Welcome to Mililani - Part 3 the Surrounding Communities
• Mililani is Pet Friendly 
• Mililani, Hawaii Directory of Schools
•   
• 12 Great Reasons to Buy a Home in Mililani, Hawaii
• Mililani Chess Kids are Still Flashing Their Stuff
• Mililani Middle School Brings Home State Chess Title
• Mililani High School Cheerleaders Take Their First State Title
• A Sunny Day of Chess and Real Estate in Hawaii
• Mililani HS Wins OIA Softball Title
• Are You Involved in Your Community? If Not, Get to It.

I read a post today that caught my eye: Sellers Resort to Weird Deals  by Heather Joubran

She wrote about some of the creative things sellers have done in tough markets to try and sell their homes.  I enjoyed the post and thought I would add my twist to the topic.

I have a little different twist on that thought.  The creative ideas may not be what sell the home or yourself, but it may get you noticed in a sea of noise. 

If you have a home in a neighborhood that has a lot of listings for sale, how will you get yours noticed?  Step out of the box and make it stand out somehow.  How about park a nice shiny Harley Davidson on the front lawn with a sales sign on it.  For Sale $250,000.  We Will Throw the House in for Free.

Sounds silly, but think about it.  It may not sell the home, but I bet it will get more people noticing it and possibly a few more showings.

In my town I market myself with the slogan:  "Not Just Another Pretty Face"

Now that slogan does not make people hire me as their REALTOR®.  (I take that back a couple of clients specifically referenced my slogan.)  Let me rephrase that.  In general the slogan does not get me business, it gets me noticed.  Along with my other marketing efforts, I am one of the most recognized agents in my area.  It may not guarantee me business, but it definitely opens doors.

So when you are hitting the wall and getting no progress, consider stepping out of the box a little.  Lighten it up and you may get noticed.  Once you get noticed you still have to earn the business.

I am writing this post during the afternoon rounds of The Hawaii State Scholastic Chess Championships.  My good friend Guy and I are running the Championships in the big hall at Windward community college in Kaneohe, Hawaii.

Last evening we had two rounds for high school only.  Today we are running all five sections.  K-3, K-6, K-8 & K-12.  The K-12 section has more time on their clocks, thus the reason for the extra day to complete all six rounds.  This years high school section has become quite exciting.  Pearl City High School and Punahou have dominated this division for the last several years.  This year Mililani High School has joined them as a serious contender.  Lead by 2-time National Champion Robert Lau and Ryan Palomares who has several State Champions titles himself.  Filling out their ranks is my step son Daniel Macalino (offensive line for the football team) and our neighbor Daniel Strickland  (wide receiver and former rugby player from New Zealand).  Both Daniels are making a strong showing in the event.  Mililani High School has never won the state title in the history of the school.  Their top three players are 2-juniors and 1-freshman.

After the first 4 rounds Mililani High School and Punahou are tied for first place with 2-rounds to go.  Both Robert Lau and Ryan Palomares are undefeated with scores of 4-0 each.  In the fifth round they are matched up with tough opponents who also have state titles under their belts.  The tournament looks to finish in a tight race.

In the K-8 Division, Mililani Middle School is leading after 4 of 6 rounds, hoping to also win their first state title in school history also.

In the K-3 Division my youngest son Jacob who is a 1^st grader has a score of 3-1 and is fighting to finish in the top 1^st grade spot.  Last year he won the Kindergarten title.  This year the competition has gotten much tougher.

The final standings will be posted at:  http://www.hawaiichess.org/ 

A couple of nights ago I was asked to speak to the local Mililani Lion's Club about our community chess club and the Chess in the School's program I run.   It turned out to be a friendly crowd.  I knew several of the members well, including two REALTORS®, one from my office.

After giving my speech the president of the club told me to pass out my real estate cards to the members so that the group heard him.  I thought about it for a few seconds and then thanked him and declined out of respect to the real estate agents in their club, that are two of the best in our community.

A little later he spoke to me on the side and said it would be perfectly OK.  I again thanked him, but declined.

I know many agents would have passed out their cards in a heart beat. 

This is how I looked at it:

1. I am good friends with those two agents, why fish in their pond?
2. If someone from the club really wanted to use my services, I am very well known in the community and easy to find.
3. I think it would have been a low class thing to do.  I was invited there to talk about my education program, not to solicit their members.
4. I am also guessing I was invited to speak because of those REALTOR® member friends of mine.

I know how in many sales classes they talk about taking advantage of every opportunity.  I think sometimes it is better not to take advantage.

The February 2008 numbers are in.

Single Family Home sales began to slow the end of the year and continued on January and February.  Even though sales volume is considerably off, median sales prices have stayed fairly stable.

Condominium sales had a drop in volume while the median price has shown increase. 

With interest rates lowering, buyers should see it a good time to take advantage of the market conditions in most areas.

*These numbers were taken from the Honolulu Board of Realtors MLS system and Old Republic Title.  They are deemed to be accurate, but not guaranteed.

You can find out more about real estate in Hawaii at: http://www.hawaiirandy.com/

February 2008 numbers are in.

Single Family Home Sales have continued to show decreased sales volume.  In February we saw a dip in the Median Sales Prices.  It will be interesting to see how the March numbers look.  I am seeing increased activity in my area for the last few weeks, but it hard to tell if that is just my business or if it is a trend that is happening in a wider area.

Condominium Sales have also seen declines in sales volume in all counties except Maui which had a strong month.  Median Sales Prices saw a bump in all counties except Maui which had the volume increase.

*These numbers were taken from area MLS systems and Title Guaranty Escrow. The information listed here is deemed to be accurate, but not guaranteed.

You can find out more about real estate in Hawaii at: http://www.hawaiirandy.com/

Or at: http://www.localism.com/

Since the lending industry is in the shake up period, I am curious to see what have been the experiences of other professionals in our industry.  Many mortgage brokers and lenders have closed their doors or gotten absorbed by others.  Many of the loan programs have or are drying up. I am sure many of you have felt the impact in different ways.

During this period of change for the mortgage industry, have you changed your approach to how you give referrals to loan officers and lenders?  Do you still use brokers or do you find yourself giving more of your referrals to primary lenders?  Are you seeing more or less loans being done by internet and out of state lenders?

What types of loans are your clients getting these days?  Has there been much of a shift in the types of loans they are getting?  What are the challenges you are seeing in your market?

I am sure my experience is not typical.  I honestly have not seen much of a change in regards to my Oahu buyers.  I have always given the majority of referrals to local funding Hawaii lenders and have pushed to get my clients pre-approvals with full docs.  My buyer's loans have gone through and continue to go through smoothly.  A large percentage of my buyers are military so many utilize their VA benefits.  Sub prime has been a tiny percentage of my business.  The changes in the subprime market, really has no impact on my day to day business.

I have had a few less than desirable situations that resulted during transactions where I represented the seller and the buyer used a broker or an out of state lender, who dropped the ball. 

I am sure that many of you have faced this nightmare.  An out of state lender, the deadlines are passing and they can not be reached.  At the last minute or even after the deadlines have passed, there is a major problem.

In a market of change it is the professionals who will survive and thrive; all others will struggle or get out of the business.  Hopefully they will not leave a wake of destruction on their way out.

New on the Market - Priced to Move Fast!

Conveniently located near shopping and Schoifield Barracks. 

Partial Remodel in 2007:

• New Kitchen Lower Cabinets
• New Countertops
• New Butchers workstation
• New Carpet
• New Vanity, Mirror & Lighting
• New Washer/ Dryer
• New Refrigerator
• Convenient to Schofield and Shopping

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Mililani Links:

• Mililani Town Association: http://www.mililanitown.org/
• Mililani Drug Free: http://www.Mililanidrugfree.org/
• Mililani Chess Club: http://www.mililanichess.org/
• Mililani Real Estate: http://hawaiirandy.com/

Mililani Blog Posts:

• Welcome to Mililani - Part 1 the Shopping Centers
• Welcome to Mililani - Part 2 the Planned Community
• Welcome to Mililani - Part 3 the Surrounding Communities
• Mililani is Pet Friendly 
• Mililani, Hawaii Directory of Schools
•   
• 12 Great Reasons to Buy a Home in Mililani, Hawaii
• Mililani Chess Kids are Still Flashing Their Stuff
• Mililani Middle School Brings Home State Chess Title
• Mililani High School Cheerleaders Take Their First State Title
• A Sunny Day of Chess and Real Estate in Hawaii
• Mililani HS Wins OIA Softball Title
• Are You Involved in Your Community? If Not, Get to It.

http://www.housingpredictor.com/ chose Honolulu as their pick for the hottest housing market in the country.  All I can say is from their lips to God's ears.

While other parts of the country have suffered, Oahu (Honolulu County) has been a pretty stable market.  Even though the resale volume is down from the hot market in 2004 & 2005, prices have remained stable.

Why do I think things have been generally better in Hawaii? 

1. People in Hawaii pay their mortgages.  We constantly are among the lowest for foreclosures and delinquent mortgage payments.
2. Our unemployment rates have been among the lowest in the nation for a few years now.
3. We are on an island, the supply is limited.
4. There are several large military bases and a fair amount of troop movements.
5. The dollar exchange rate makes us look like a bargain to foreign investors, especially the Canadians.
6. Some west coast markets, not only are slower, but the prices are higher.  We look like a bargain to some of their folks.
7. According to http://www.housingpredictor.com/ the J-REIT (Japanese real estate investment trust) will allow capital to purchase in Hawaii.  Hawaii has been a favorite for Japanese investors and this change may provide a large influx of money from Japan.
8. We are in Hawaii, who wouldn't want to live or invest here?

I think No. 8 says it all.  Aloha From Sunny Hawaii!!