Real Estate Report


On the Big Island, the median price of a single-family home was $240,000, a 38 percent drop from the median price of $385,000 in April 2008. The April median price was based on 90 sales, a 22 percent decrease from the 116 sales recorded during the same month last year. Sales from January through April were also down 22 percent from the same period last year.

The median price of a Big Island condominium dropped 46 percent to $269,000 from $500,000 in April 2008. The median price for the first four months of the year was $282,500, down 43 percent from the median price of $495,000 during the same four-month period in 2008. Sales of condos in April were down by more than half. There were 21 units sold on the Big Island last month, a 53 percent drop from the 45 units sold in April 2008. Year-to-date sales of Big Island condos are down by 48 percent.

On Kauai, the median price of a single-family home was $600,000 last month, 4 percent higher than the median price in April 2008, which was $575,000. That price was based on 23 sales, 9.5 percent more than the 21 sales recorded in April 2008. Sales for the first four months of the year, however, were down by 32 percent.

Year-to-date, the median price of a single-family home on Kauai was $479,000, down 27 percent from the median price of $655,000 for the first four months of 2008.

The median price of a condominium on Kauai in April was $222,250, a 47 percent drop from the same month a year ago, when the median price was $420,000. That price was based on sales of just 12 units, down from 15 units in April 2008.

The median price of a Kauai condo for the first four months of the year was $238,000, a 58 percent drop from the median price for the first four months of 2008, when the median price was $570,000. Sales for the first four months of the year were down 42 percent. (Pacific Business News 05-06-2009)

High Definition Television

Want high definition television in your condo?  This is what you need (besides a HDTV):

  • an addressable box with remote ($7.52)
  • digital service (380 channels, pay-per-view, commercial-free music, and parental control: $11.02)
  • HD Entertainment Pak ($6.95)

For more information, visit Oceanic Time Warner Cable or Other Options.  If you use your condo as a rental unit, you may want to investigate a high definition entertainment system, and raise your rates to help pay for it.  You will pay for it in less than a year at a $6 per day increase.  Oh yes.  Which set should you buy: a 720p or a 1080p?  You will have a very hard time telling the difference on a 42" set, so save your money and go for 720p.

Portable Air Conditioners

Portable air conditioners are being installed at a fast pace in bedrooms, but are they the answer?  Read your webmaster's (outspoken) assessment of this trend in their editorial, The Great Portable Air Conditioner Fiasco.  Then check out Bob Ward's report on his air conditioner modifications.  We have updated this page with a three-month electricity savings table and other information.

Water Claims

David Gerlach (Insurance Associates) writes, "Water damage is one of the perils that are covered under your master Property Policy. The water damage must be "due to accidental discharge or leakage".

The master condominium policy insures only the interest of the Association and not the individual unit owner. The master policy covers the buildings and items
as originally conveyed by the developer. It insures the building, appliances, carpet, walls that make up the interior of the dwelling, cabinets, electrical and plumbing fixtures, ceiling and flooring all as originally built. Subject to the deductible the building is covered for perils like fire, lightning, windstorm, hurricane, vehicle damage, water overflow, smoke damage, etc. The master policy will not provide any coverage for the unit owner's personal contents, improvements, lost rent or extra expense to live elsewhere while the unit is being repaired.

In a normal water damage claim that is sudden and accidental and not intentional, the master policy has an obligation to respond to the damage. The AOAO should investigate
the damage and determine if it is over the master policy's deductible and if it is should report it to the insurance agent who in turn will report it to the Claims Department unless the AOAO wants to repair the damage themselves. At the same time, the unit owner should report the damage to their insurance agent.

If the damage is under the deductible, the unit owner if they have a Condominium Owner's policy (HO6), will have at least $5,000 of Dwelling or Tenant Improvement coverage. Damage to the structure would be covered under that policy.


However, if the damage is over the deductible, the AOAO has a responsibility to repair the damage to the structure. There should be no delay in determining the scope of damage, as there is always the possibility of resultant mold damage, which takes a relatively harmless claim and makes it potentially a very expensive claim.

If after the repairs are completed, the Board or AOAO determines that the damage was done by negligence on the part of the unit owner, they have the right to assess that owner the damage incurred by the AOAO
- either their deductible or the entire amount if repaired by the AOAO in its entirety. As you know, you also have in your bylaws the "Maintenance of Apartments" which states that owners must maintain their units in a condition that does not do damage to the structure, however, this does not relieve the AOAO from the responsibility of repairing the structure.

Unit Owners that have the HOG policy might also have Loss Assessment coverage that would take care of this assessment.

If the unit owner knows of a leak and does not have it repaired, the insurance carrier will not provide coverage for water damage because it is not sudden and accidental and then the owner would be legally liable for that damage incurred to the structure BUT the AOAO is not relieved from repairing the damage to the structure.

New Real Estate Developments in Our Neighborhood

Ke Ali'i Ocean Villas--a townhome condominium project above Kamaole Beach I.  The units are spacious, and some have nice views.  They all include a garage.  Town Island Homes will entertain offers! Prices begin at $550,390 for a two-bedroom condo.

Wailea Beach Villas--98 units including 60 penthouse condominiums and 38 ocean villas  (resales from $2,150,000)

 
Kai Malu at Wailea--150 luxurious 3BR/2.5BA townhomes with 2-car garages being built adjacent to the 7th Fairway of the Wailea Blue Golf Course.  Resales that began at $1,149,000 last year have dropped to $885,000
 
Kanani Wailea--38 single-family detached units in a residential condominium complex, located at the intersection of Piilani Highway and Kilohana Rd. Resales, that began at $1,489,000 last year have dropped to $850,000. 
 
Ho'olei--A very exclusive property located across the street from the Grand Wailea.  Ho'olei offers three different townhouse-style floor plans, all 3BR/3BA, minimum 2,563 sq. ft., with a 1-car garage and exquisite finishes and amenities.  Prices that originally started at $2,925,000 now begin at $1,695,000. 
 
Papali Wailea--Originally priced at $3,700,000, and now $3.398,000, these 24 single family homes in a gated residential condominium complex includes a pool pavilion, quality construction, and expansive ocean views. Adjacent to the Wailea Palms Residences, they boast copper roofs, spacious interiors, and attached garage.
 
Wailea Beach Resort and Residences, the long-awaited beachfront property to be built on the site of the Renaissance Hotel.  A 5-star project with 193 condominium units--1,2,3,and 4 BR's, with prices starting in the high $1 million's for 1BR units, to approximately $10 million for the 4BR front row units.  No building yet, and the required $250 million sales to begin construction is slow in coming. In fact, we understand it is dead in the water.

Maluaka--69 condominiumized residences, 2,3,and 4BR's, in an exclusive gated community on the ocean in Makena, just south of the Maui Prince Hotel.  Interior square footage for these unprecedented units will range from 2,300 to 5,400.  Prices are expected to start in the mid $4 million's. 

 
Hokulani Golf Villas--152 single-family residences in a residential condominium complex, featuring ocean and mountain views from a 40 acre parcel located mauka of the Piilani Highway surrounded by the Elleair Golf Course.  Six different floor plans starting at $1.2 million.
 
Kai Makani Beach Villas--This 102 unit complex across the street from the beach in north Kihei, features a mix of 2BR and 3BR condominium units.  Units originally sold in a range from the low $500's to the high $600's, with re-sales based on original sales prices plus market appreciation. 

On a balmy Saturday evening as the stars began to twinkle brightly, I joined scores of people at a talk by wildlife biologist Fern Duvall on the Wedge-Tailed Shearwaters (Puffinus pacificus chlororhynchus) ('ua'u'kani).  These birds have historically used Molokini to nest between March and November.  They usually select remote places where the habitat allows the prevailing winds to help them lift off.  As their numbers increased, they began looking for new sites to build their burrows, and they selected the area south of Kam III beach as well as Kamaole Point to nest.  Using red cellophane-covered flashlights, we gingerly picked our way along the new coral-lined trail to observe the birds first-hand.  As I stood there, I became aware of birds flying back and forth along the shore.  Occasionally, they would swoop over our heads. Soon it seemed the night air was filled with their loud groans, moans and wails which give them the name "moaning bird". Vocalizations occur primarily at night in breeding colonies.  Their courtship ritual begins shortly after arrival in late March. A pair will sit head to head, often near their burrow entrance, vocalizing two-part wailing duets. The birds return to the same nest site each year,  Chicks hatch during late-July through late August. 

A few yards further down the trail, I approached a biologist who was aiming his light at a burrow.  (Burrows average one to two meters in length.) There huddled two adult birds.  All shearwaters have trouble standing upright on their legs, and they have difficulty moving about on land.  Eventually, they waddled right over to us and almost moved over our toes.  It seemed they were totally unafraid of the intruders.  I walked away, contemplating the wonder of these beautiful birds who are flourishing near Kamaole Sands.  If you wish to observe these birds,  take a red cellophane-covered light and walk the trail between April and November joining the Kihei boat ramp with Kam III beach.  Stop where you see the warning signs to stay on the trail.  Walk quietly and speak in hushed tones.  Enjoy.  Incidentally, Buck Joiner is maintaining cat traps in the area.  If you see a cat or a bird in the trap, call the telephone number on the trap and Buck will tend to the trap immediately.

Why does Hawaii get so few hurricanes?  Hans Rosendal, retired meteorologist, provides the answer:

The reasons for the lack of hurricanes in Hawaii are several. We usually don't quite have sea surface temperatures warm enough (about 82 degrees) and deep  enough warm surface waters to sustain the development of hurricanes. If we get up to 80 degrees now and then in August and September, that is about max.  We therefore have to import the few hurricanes that we do get.
 
Secondly, the upper wind flow over our region usually features westerlies which is very detrimental to keeping a hurricane approaching from the east (intact). In countless cases we have been 'saved' by this upper flow pattern as storms move into our region and fall apart due to it being sheared. What is needed is easterlies at both the surface and aloft so the entire column of air can move along without ventilating out the latent heat derived from the convection which in turn cause the pressure drops and wind increases.
 
In the case of Iniki in 1992 (an El Nino year), we had an unusual flow pattern with less vertical wind shear and other things working to sustain the health of the storm. Just like living beings, a hurricane goes through a life cycle. Since Iniki formed on this side of 140W longitude about two or three days prior to it hitting Kauai on 9-11,  it was a healthy and growing youngster by the time it moved into our area. The health of storms also depend on what is going on, often far away from the storm.  Let me explain. 
 
This season with its many intense storms in the Atlantic basin has seen unusal high amplitude upper flow across North America with strong surface Highs and troughs along each coast. The pattern was so persistant that a drought was going much of the summer in the midwest. I would compare it to a flow pattern that prevailed during the early and middle 1930s across the U.S. with some areas the driest since then.  Also there was a severe drought in South America with the Amazon basin being the driest in memory and lots of suffering due to lack of water for transportation. These two drought areas, to the north and to the south of the active hurricane breeding trough of the Caribbean and Gulf of Mexico, kept strong subsidence over these land areas as an equilibrium to sustain rising motion over the trough in between them and to feed a moist low level flow of air into the trough.  The trough also enhanced the sea surface temperature warming over the basin.
 
The feed of air from the south means that it is being imported from the southern hemisphere (SH). During the past few months I have been looking at wind speed and direction at Galapagos Islands on the equator off South America at EQ and 90W. Winds there without fail have been out of the south at 10 to 15 mph flowing across the equator into the NH day in and day out. Then as the winds enter the NH, they become SW winds around 05N and flow across Panama and central America into the Caribbean where they make a left turn at 15N around the trough. This area where the winds make this left turn is where the hurricanes seem to have been forming including Wilma.
 
This is getting a little far away from Hawaii, but it kind of supports my own private ideas of the importance of the cross equatorial low level flow component needed, or at least being helpful, to sustain hurricane formation at low latitudes. Thus when storms threaten Hawaii it may be useful to look at what is going on at the equator and beyond to the south of us.
 
Your question about the effect of the mountain areas of Mauna Kea and Loa and Haleakala on hurricane motion, I prefer not to discuss here. No doubt the massive mountains have a great effect downwind, and some effect also a distance upwind during the stable stratified flow of trade winds. Thus a weak tropical depression coming in from the east and surrounded by an unstable showery air mass would likely not know the difference as it approaches the mountains. On the other hand, a more intense cyclone surrounded by subsiding ring of stable air could feel some effects. But again, I would not count on it, since at times the forcing is strong, and we have had cases of hurricanes striking the Big Island and Maui including the famous Kohala cyclone in the 19th century.
 
The track of Iniki northward after passing south of the Big Island was forecast quite well and the hurricane watch was issued the afternoon before on 9/10 as we realized that the storm would not pass as far west of Kauai as earlier thought. We did not get the full 36 hour lead time, we strive for.  I worked on the initial issuance of the watch, so I remember it well.

Friends of the Library is located in the old townsite of Pu'unene near the sugar mill.  Where Mokulele Highway turns into Pu'unene, turn toward the sugar mill on Hansen Road.  Turn right on South Pu'unene Avenue and drive past the HC&S sugar mill toward Haleakala.  Note the historic buildings along this stretch of the road.  Drive to the stop sign and turn left on East Camp 5 Road.  Note the tiny "Books" arrow. Sign #1 You will pass an old deserted church on the left and the old Pu'unene School that is now being used by social agencies.  Turn right into the driveway at another tiny "Books" arrow.  Wind your way back behind the school  to the old plantation building beneath huge trees housing the Friends of the Library.  Walk past the roosters and browse to your heart's content through over 180,000 books.  Magazines are free.  Thanks to Ed Heller (7-309) for reminding us of this wonderful resource.  He is currently volunteering his time at MFOL.

Selling Your Local Car

If you sell your local Maui car, be sure to send the bottom of your Certificate of Registration to the correct address (70 E. Ka'ahumanu Avenue, Kahului, HI 96732).  The address on your certificate may be out of date and the Post Office will not forward it.  Many locals have a strange notion that they save money by not transferring title.  And some locals know that if they don't transfer the title, the previous owner is liable for tow-away charges in the case the car is abandoned.  Further, liability for tickets and lawsuits stays in your name.  And always make a copy of the bottom of the certificate that you send in, and store it with the bill of sale.  Finally, heed this advice.  Do not sell your car unless the new owner agrees to accompany you to DMV to file the paperwork.

A new tourist attraction on Maui is being planned

A new Haleakala Ranch Visitor's Center on Crater Road has been approved by the Planning Department.  The visitors center will represent an  “eco-tourism master plan” aimed at “small-scale agricultural tourism.”  Eco-tourism already has begun in a small way, with Skyline Eco-Adventures, Pony Express Tours and Haleakala ATV Tours operating on the ranch.  A combination museum and retail center just past the cattle guard at about the 4,100-foot elevation is being planned. The visitors center will have a ranch museum and shop; facilities for the tours; a covered picnic area for both tourists and locals wanting to hold baby luau and the like; new quarters for Jim Heid’s protea packing sheds and retail store; an expanded Sunrise Country Market; and a lavender farm and herbal essence distillery.

Where can you buy Maui-grown beef?

Haleakala Ranch and seven other ranches have formed the Maui Cattle Co., whose goal is to “not have any live cattle leave the island.”  Already, demand exceeds supply.  You can buy Maui-raised no hormone, no steroid beef at Hana Ranch Store; Long’s in Lahaina, Kihei and Kahului; Kula Ace Hardware; Morihara Store; Ulupalakua Ranch Store; Hanzawa Store; Ah Fook’s Supermarket; Mana Foods; Rodeo General Store; Hard Rock Cafe Maui and on Oahu and the Big Island; Roma d’Italia; Compadres; Smokehouse BBQ; and Kamehameha Schools.

Hawaii ranks 8th on a list of healthiest states

Hawaii ranks 8th on a list of healthiest states in America, according to a new report released by CQ Press, Washington, D.C., a division of Congressional Quarterly Inc.

The state picked up one spot over last year and was measured by 21 factors including access to health care providers, an emphasis on preventative care, affordability of health care and the general health of the state's population.

Hawaii was ranked highly for its safety belt usage, low obesity rates, low level of adult smokers and strong health care coverage, according to the report.

Minnesota ranked first on the list of healthiest states, followed by New Hampshire. Rounding out the top five healthiest states were Vermont, Maine and Massachusetts. On the bottom of the rankings was Mississippi as the least healthy state. Others included Louisiana, New Mexico, Nevada and Florida.

Highway construction around Maui... 

The parking lot at the Kealia Pond National Wildlife Refuge boardwalk is being installed.  The parking area will provide four parallel parking stalls, two big stalls for buses and eight diagonal stalls along North Kihei Road. The project was expected to be completed around March, but there have been delays. The 2,200-foot boardwalk was completed more than five years ago - but remained closed when construction of a parking lot was stalled by a redesign required by a law that blocked cutting into the sand dunes, a funding shortfall and requirements for special permits for work in an area subject to coastal flooding.

The Kihei North-South Collector Road running the length of Kihei has been stalled because federal funds approved a four-lane road, but the community wants a two-lane road with greenways and bike paths.  The State wanted a four-lane road, but that's not what the community wants.  In order to be eligible for federal funds, the county would have to show how they will divert the extra traffic.  Pii;ani Highway cannot be widened to six lanes because of restricted right of way.  The route of the north-south collector road runs parallel to and between Piilani Highway and South Kihei Road, down the length of Kihei from Uwapo Road to Wailea.   On a more positive note, work is proceeding on sections of the road built by private developers under terms of approval of their subdivisions.  Towne Realty will build a “substantial segment” of the collector road fronting its Kealii Villas and Kealii Kai subdivisions.  

Kihei-Upcountry limited access road to run from the Haliimaile intersection with Haleakala Highway to the Piilani Highway at Kaonoulu will cost around $85 million.  A consultant to work on the planning is being sought.  The new route goes through 10 miles of sugar cane fields from the intersection of Piilani Highway and Kaonoulu Street in Kihei to the intersection of Haleakala Highway and Haliimaile Road.  As proposed, the road initially would be a two-lane highway, but there would be enough right-of-way available to widen the road to four lanes in the future.  Each lane would be 12 feet wide and have paved shoulders wide enough to accommodate bicyclists.  The road’s speed limit would be 45 mph in the urban area near Kihei and 55 mph in rural Upcountry.  When will it be built?  Some locals jest that 2099 is a good guess.

Hot Tub Warning

"The hotel hot tub may seem like a bubbly pool of joy for kids, but the risks can outweigh the fun, Gary Graham, M.D., warns.   Small bodies can't regulate temperatures well, upping their risk for heat stress, or, in extreme cases, heart damage, brain damage or death.  Kids under 10 should completely avoid hot tubs, but older kids can take a 20-minbute dip, provided the water's temp is no higher than 104 degrees F. 

Harry Bernstein, M.D. explains: "it is not safe to bring a five-month-old into a whirl pool or jacuzzi-type bath that has a high temperature. Most public spas or jacuzzis will have a sign posted stating that infants should not be allowed in it. The reason for this is that most of these types of spas have a water temperature of over 100 degrees. Young children, in particular, have a much more difficult time regulating their body temperature. When exposed to these high water temperatures, their body temperature can rise significantly and quickly, causing difficulty with a number of metabolic problems.

Adults have a more balanced thermostat and even after spending ten or fifteen minutes in a temperature of 105 degrees, can still maintain an appropriate body temperature that allows all the bodily functions to work properly. However, a child does not have this capability and thus it is not safe to take an infant into a spa. It's also not particularly appealing to the other adults who will be using the spa to have a child in diapers share it with them!

I would also avoid taking a young child (three to six) into a spa, partly for the reasons mentioned above, and partly because of the potential for drowning. The central area of many of these spas is one to two feet deeper than the edge, and children may falsely think that it is not over their heads. Also, the suction that pulls the water out can be very strong, and there have been reports of children who have been pulled under the water by the force of the suction."

Haleakula was the subject of a lecture by University of Hawaii geologist John Sinton, who believes that "we’ve been going through a quiet period for the last 300 years, but how long is it going to last? Is it going to last 1,000 years? Is it going to last 100 years? Is it going to last an hour and a half?”

Sinton believes that Haleakula might be the longest live volcano in the Hawaiian chain. The rift zones that streak up either side of the mountain, from Hana on one side to Keoneoio on the other, make everything along the way vulnerable to an eruption. Sinton acknowledges that while volcanologists have pushed back the date when they believe the last lava flow occurred at Keoneoio (La Perouse Bay) from 1790 to probably between 1450 and the 1600s, those same experts also agree that the mountain has never really stopped pumping. Haleakala continues to slowly rise and creep north. “There are a couple of reasons (for the rising) and one of them is magmatic,” said Sinton. 

Owners are reminded that fines will be levied for faulty air conditioners with excessive dripping where water collects on lanais below the unit.  Further, the owner is liable for all damages to walls and concrete.  In the long run, it is cheaper to replace old units than pay damage costs and high utility bills for constant running of the unit.

Kihei in the Old Days...

What was the Kihei-Wailea-Makena area like in 1970s? Your webmaster and his family visited Kihei when the original Azeka store was an old wooden-framed plantation-style shop near the family’s chicken farm. There were farms here and there with empty beaches stretching southward where hippies (often with limited clothing) congregated. Resort accommodations were limited to North Kihei, where the Maui Lu along with other condos and hotels attracted visitors. Kihei Road was a rustic, rural road that turned to dirt south of Kalama Park. Clusters of homes were spotted along the way. It was easier to get to Makena from Kula, using the Ulupalakua ranch road than along the shoreline south of Kihei. The Wailea Intercontinental Hotel (now the Marriott Outrigger Wailea Resort), was built in 1976.

Had you been on Maui in the 1950s, you would have found plantation towns in Wailuku, Paukukalo, Waihee and Waikapu.  Wailuku Sugar Company was the major employer.  Kahului hosted a scattering of plantation camps, sandy scrubland and a few stores.  Kihei was deserted, with a scattering of villages here and there along the shoreline.  The largest towns were Paia, Puunene, Hamakuapoko and Haiku.  The total population numbered less than 40,000.  The Kahului Railroad extended from Spreckelsville to Paia, into Wailuku and later Hamakuapoko (near Hookipa) and Haiku.  A passenger coach took children to the high school at Hamakuapoko.  The trains stopped in 1966.

Had you wanted to visit Lahaina prior to 1950 from Central Maui, you would have had to negotiate the torturous road that you see off to the side of the present highway.

Now let's go back to the World War II days.  At the north end of the Kama'ole I beach (known to most local residents as Young's Beach), the military took over this area and other surrounding parcels to build a Combat Demolition Training Station. The training was said to have been the most rigid and intense of any naval training at the time. Over forty teams of one hundred men each were thoroughly schooled in reconnaissance and demolition activities. The beaches of Ma'alaea, Kihei, Kama'ole, and Wailea were fortified to resemble enemy beachheads and they were assaulted in training exercises. At the south end of the beach at Kama'ole I, an old concrete pillbox is one of the few reminders left of the war years. Another pillbox is visible in front of the Marriot Wailea Resort.  After the war the barracks and other buildings at Young's Beach were torn down, and in 1950 the Youngs were finally able to build their home. 

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