March Points-of-Interest

Aloha Owners!

I hope you've all been enjoying the last of these blustery winter weeks. We've got a lot to cover in this month's "Points-of-Interest", so let's jump right on in:

SHORT TERM RENTALS
Requests are continuing to come in waves with most at $500-600/nt, staying March - May, and nearly all asking for a discount. Below are a few examples of what your fellow homeowners are booking at:

• Example A: Home advertised at $650/nt is taking offers of $500 - 550/nt.
• Example C: Home advertised at $850/nt is taking offers of $600 - 650/nt.
• Example B: Home advertised at $2750/nt is taking offers of $1250 - 1500/nt.

Our goal is the same: To maximize the return on your investment. If you receive an offer that seems insulting, please know that we are simply trying to keep your home occupied and what you ultimately decide to take or pass on is up to you. We will not present an offer that we do not feel is a good offer. We will not present an offer that is far below the scope of what we are finding the market will bear. Working together, despite all circumstance, we are confident it will be a successful 2009!

LONG TERM RENTALS
The increase in inventory for long term rentals surpasses that of short term rentals hands-down. We receive several requests a week from owners looking to rent their homes long term and I will tell you first-hand that they are not picky about what they get for rent. We have passed so far on most all of these requests as it is our duty to you to make sure that we are able to fill the inventory that we have before taking on much of anything new. Here are a few recent examples:

• Example A: Fully furnished, moderate and across street from Lanikai beach, no view, 4 bedroom home asking $5K/month. Had serious offer of $4300/month but drawn out negotiations. Status: Still fielding offers.
• Example B: Fully furnished, brand new and luxurious, Lanikai beachfront, pool, 3 bedroom home rented at $11K/month for 6 months. Status: Occupied.

What you should garner from this is two-fold: 1) desperate owners and increasing inventories make for lower rents in the market, and 2) if a reasonable offer presents itself, act quickly.

MARKETING:

• New Alliance: HawaiianBeachRentals.com. Hooray! This additional exposure has already resulted in bookings for some of you!
• New Trinity Website: Experienced some setbacks and is currently behind schedule. We will keep you posted on the progress.
• New Opportunity: HomeAway.com. This has resulted in tremendous lead generation for those owners currently participating. Because of the results we've experienced, we would like to enroll your home and deduct the $300/year cost from your monthly proceeds. To OPT OUT, please contact Carissa by March 31. We will call you to discuss over these next few weeks as well.

SALES UPDATE:
presented by
Annie Kwock, R
(808) 780-4444
"Please call me anytime to discuss your home value or to search for investment opportunities."

I just returned from a presentation by Paul Brewbaker, one of Hawaii's most respected economists. According to Paul:

• No longer is there a time lag between the mainland (and specifically the West Coast). Hawaii's real estate market is in "real time" with the US mainland and the rest of the world.
• Hawaii's median prices have dropped slightly, however, we have not seen the same precipitous fall that is plagueing California. Our selling prices on the whole are steady in most markets. The number of sales has dropped and days on the market is longer but the selling prices in the luxury market have remained steady.
• Hawaii's unemployment rate remains relatively low at about 4% vs 8-10% in California, indicating an underlying strength in the Hawaii economy. According to Warren Buffet we will see sales rebound when "greed overcomes fear" and you won't know where the bottom of the market is until it is behind you.... That means that NOW is a great time to buy real estate.

Economist Views 2009 As Bottom For Hawaii Real Estate
February 12th, 2009 categories: Honolulu Real Estate 101
Bank of Hawaii senior veep and chief economist, Paul Brewbaker, spoke to the Maui Chamber of Commerce this past Friday. Over the 17 years I have been following Paul he has been dead on with his predictions. He called the early 90’s recession and a median price for Honolulu homes in the range of $650,000. Brewbaker thinks 2009 is the bottom of our woes.

“The economy is sickly for now, but it could pick up in the second half of this year and continue on the upswing in 2010, economist Paul Brewbaker said Friday. That rebound could come sooner if Congress quickly passes an economic stimulus plan meant to speed up the nation’s recovery, he said. A deal on an economic stimulus measure was announced Friday after Brewbaker’s talk. “I’m pretty sure 2009 is the bottom,” he said. Brewbaker, senior vice president and chief economist for Bank of Hawaii, spoke at the Maui Chamber of Commerce’s annual Paul Brewbaker Ph.D. Economic Forecast Luncheon, sponsored by Bank of Hawaii. CLICK HERE TO READ THE MAUI NEWS ARTICLE.

Note that in the past Honolulu has led the Oahu real estate market out of economic down turns. Honolulu real estate may be poised for foreign investors to take advantage of differences between their currency and the American dollar. Check this quote from and article at Pacific Business News: “The dollar’s fall against foreign moneys is affecting consumer purchases — from the flow of cash at currency exchange shops in Waikiki to foreign visitors buying real estate. The euro and the Chinese yuan and everything in between are moving higher against the dollar,” said Paul Brewbaker, chief economist for Bank of Hawaii.” READ THE WHOLE ARTICLE BY CLICKING HERE.

While the economy persists in a very weak state nationwide, the local real estate industry, thankfully, remains steady. Research shows that the Oahu housing market has been performing differently from the mainland market. According to Harvey Shapiro, research economist for the Kaimuki-based Honolulu Board of Realtors, the mainland housing prices have been dropping by double-digit percentage points, and some cities' have dropped over 30 percent in just one year. In Honolulu, our housing prices are stable. READ THE WHOLE ARTICLE BY CLICKING HERE.

That about wraps it up for this month's "Points-of-Interest". We are always here to answer any questions you may have regarding Hawaii's real estate market and thank you again for the opportunity to be of service.

Warm Regards,
Carissa Leonida
Director of Operations

Trinity Properties LLC
Sales, Rentals, and Property Management
Toll Free (888) 939-0444
Office (808) 247-7521
Direct (808) 673-6800
carissa.leonida@trinityproperties.com
www.trinityproperties.com