AN UNUSUAL DOCUMENT RELEASE
March 9th, 2007Normally the President's Council of Economic Advisers' Weekly Bulletin is only distributed within the Administration. For some reason, this week's is available online. Here are the key thoughts:
WHAT DOES THE SUB-PRIME COLLAPSE MEAN?
March 8th, 2007As usual, there is a difference of opinion. Subprime lenders are frequently special purpose companies set up for the express purpose of making mortgage loans to people with credit scores which are too low to qualify for an ordinary mortgage. Such subprime lenders charge higher interest rates and fees to lenders who use them and hope that the higher default rate that necessarily comes with higher risk lending is more than overcome by the higher rates and fees. Like most financial institutions, these companies are very heavily leveraged and rely on the capital markets for additional financing to assure growth. In the past few weeks, as the default rates for some of these firms have become uncomfortably high, the equity markets have killed their stocks and lenders have stopped making loans. As a result, several of these subprime lenders will probably seek bankruptcy protection.
A MAUI MEADOWS CLOSING!
March 8th, 2007645 Laniolu, a 1992 square foot pole house with cottage and big ocean views has sold for $1.150 million. That represents over a 30% discount to its initial asking price of $1.55 million and less than $600 per square foot for a remodeled home with huge ocean views.
A NEW LAHAINA DEVELOPMENT
March 8th, 2007The Villas at The Royal Lahaina will be built on the 27 acres that the Royal Lahaina Hotel now occupies at the north end of the Ka'anapali Resort. The hotel itself, having just gone through a major renovation will continue to operate. The new development will consist of approximately 125 condominiums in seven buildings. The floorplans will be very, very large. The largest will be approximately 8000 square feet of interior and lanai space with most others exceeding 3000 square feet. Owners of the condominiums will likely have access to the facilities of the Royal Lahaina Hotel as well as several private pools, a gated entries, underground parking and top of the line materials and finishes. While no prices can be discussed yet, we note that comparable kinds of properties have sold recently for between $1500 and $2000 per square foot.
CITIGROUP GOES BULLISH ON HOMEBUILDERS
March 6th, 2007LEVIATHANS
March 4th, 2007Preliminary findings in the largest-ever study of endangered humpback whales throughout the Pacific show that the healthiest populations seem to be in Hawaii and Alaska.
MAUI MEADOWS FEBRUARY RESULTS
March 4th, 2007Thus far in 2007, exactly ONE Maui Meadows home has gone into escrow. That compares to five in the same period last year. There is simply no way to put a positive spin on those facts. This neighborhood, one of our favorites, is simply not getting much attention. Why? A couple of possible reasons. First, are prices simply too high? Sellers really don't seem to think so and are not moving them much. Second, is the privacy offered by half-acre lots no longer worth the burden of caring for them? We have an aging population and this may be playing a role. Third, are new "home-like" condominium projects in Wailea, with the usual neat and clean Wailea look bringing a negative contrast to Maui Meadows' more bucolic atmosphere?
A WAILEA DEAL
March 2nd, 2007Today, Maui buyers want immaculate property, ease of use, big views, three bedrooms (at least) and garages. Well, Kanani Wailea certainly fits that bill. Located within the Wailea resort, this brand new condominium complex offers 38 condominiums that share no walls with neighbors! They also boast two car garages and excellent materials. These units were sold-out on a pre-construction basis in 2005. Now several are available on a resale basis. Easily the most attractive in Unit 20. It has panoramic ocean views, 2300+ square feet of air conditioned space, three bedrooms, 2.5 baths, granite countertops, Wolfe and Sub Zero appliances, stereo throughout, tiled bathrooms, walk-in closets and a two-car garage. It has never been occupied.
A VIEW FROM THE LANAI
March 1st, 2007We will be bringing a new listing to market shortly. While we were previewing it today, from the lanai we saw a competition pod of humpback whales. That's a situation in which several males are competing for the right to mate with a particular female.
TWO MORE TOM AND SEAN CLOSINGS
March 1st, 2007
We remain among the most active Realtors in South Maui. Today we closed a sale at the Palms at Wailea, unit 1210, a one-bedroom unit for a record price of $860,000. We also assisted the buyer in the purchase of a lovely four bedroom home in Kihei Ali'i Kai for $960,000. We will announce another Kamaole Sands closing tomorrow.
