Not surprisingly, the majority of real estate figures throughout the Maui area are down in the first quarter of 2009. However, some investors are keen to point out that some areas actually showed higher sales figures suggesting that hope is on the horizon. The last two months for Maui real estate have been the worst in the last two years but with some pockets of increased sales figures might indicate that the downturn has reached its lowest point and figures will start improving.
Trends are a bit early to read and many cautious real estate experts are advising that at least 3 or 4 months of real estate sales data needs to be collected before any definitive statements can be made. As far as overall sales numbers are concerned, the first quarter of 2009 showed a marked decline. Declining statistics were also seen in average and median sales prices and dollars generated. Minor improvements on these first quarter trends may or may not be merely an anomaly.
The following are more specific statistics:
- Compared to the first quarter of 2008, 50 percent fewer single-family homes were sold. This represents a drop from 228 sales in 2008 to 113 sales in 2009.
- Single-family home sales averages also dropped from about $910,000 to $805,000 which is an 11% dip.
- Median single-family home sales prices also dropped 11% from around $603,000 to $538,000.
- Finally, the total dollars generated on single-family homes came down a staggering 56% from $207.5 million in 2008 to $91 million in 2009
- Comparatively, figures for condominium sales faced similar drops.
- The total number of condos sold fell sharply. In 2008, 276 sales were finalized in the first quarter but only 148 this year.
- Average condo prices took a larger dip than housing prices going from $940,000 in 2008 to around $721,000 this year. This represents a 23% decline.
- Similarly, median sales prices tumbled 22% from $587,000 to $456,000.
- And finally, the total dollars generated through condo sales fell nearly 60% from about $260 million to $106 million.
Still, there appears to be a glimmer of hope. Some regional figures fared much better than the averages throughout Maui suggesting that things may be looking up in the near future. Central Maui, for example, was the most active region for sales of single-family dwellings. In this location, average housing prices actually increased a modest 5% despite a drop in the number of transactions. While 103 first quarter single-family house sales were tallied in 2008, only 47 were completed in 2009. Another example of modest increases in average housing prices is Kihei. Sales activity did drop 13%, from 36 sales last year to 23 for the first quarter this year; average sales prices actually increased an impressive 9%. This means the average single-family home increased from nearly $650,000 to over $700,000.
Resort areas like Lahaina and Wailea-Makena also had improved figures with regard to median price of single-family homes. In Lahaina, median sales prices raised a very impressive 57% and average sales prices went up around 20%. Similarly, Wailea-Makena benefitted from a 26% rise in both median and average sales prices.
As far as condo owners are concerned, positive growth for condo sales was much less likely. Still, in Kaanapali condo prices were 27% higher this year than last and median prices were up 22%. In fact, the sales of Kaanapali condos also showed positive growth compared to a year ago with 37 condos sold in the first quarter this year compared to 12 last year.
Nonetheless, now is the perfect time to buy! Housing and condo prices are at the lowest point they’ve been in years and it’s not likely that prices will drop much more. The market is tightening up and there are fewer available properties as home owners are reluctant to sell in the current market.
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A ruling by the U.S. Supreme Court gave both sides of the ceded lands dispute some good news. On Tuesday, March 31st the Supreme Court ruled the congressional resolution that apologized for the ousting of the Hawaiian monarch in 1863 did not strip the state of property rights with regard to 1.2 million acres of former crown lands. The unanimous ruling overturned the Hawaii Supreme Court’s previous ruling that used the 1993 Congressional Apology Resolution to prevent the sale of land passed on to Hawaii when it joined the Union and became the 50th state.
This new ruling by the U.S. Supreme Court prevents the OHA from relying on the 1993 Resolution in further court proceedings. Since a resolution is not a law, it comes as little surprise that the U.S. Supreme Court overturned the previous ruling by the Hawaiian Supreme Court. The success of the OHA in selling land should not be dependent on the 1993 Apology Resolution as there are a number of state laws, resolutions, and legal precedents that lend support to its position. Moreover, before the final decision is made by the Supreme Court, ceded land parcels can still be sold off by the state, although this is unlikely. Ceded land sales and transfers would be inadvisable politically as the current state’s Republican government hopes to replace Gov. Linda Lingle with Lt. Gov. James Aiona.
Nonetheless, current state Attorney General Mark Bennett, who lead the appeal of the Hawaiian Supreme Court’s 2008 decision, feels that the U.S. Supreme Court has given the state control over ceded lands. Because the U.S. Supreme Court’s decision ultimately mandates that the Apology Resolution has no effect over the rights of the State of Hawaii, the land that was originally in absolute fee by the United States should now be under the control of the state. The U.S. Supreme Court’s decision clearly supports the argument that there is no implication in the Apology Resolution that Hawaii does not have sovereign right to control its own land. The Republican Party has consistently maintained that the state executive branch has total power to sell or transfer ceded lands according to the 1995 State Admissions Act.
In 2008, the Hawaii Supreme Court created an injunction opposing the sale or transfer of ceded land which constitutes more than a fourth of the land on the islands. This equates to several billion dollars worth of real estate. However, the U.S. Supreme Court’s decision changes nothing of the original arguments. Ultimately, they deemed the Hawaii decision as inaccurate and therefore the argument returns to square one. Both sides of the issue will revisit their original arguments, this time ignoring the Apology resolution. Some believe it will still be possible to halt the sale of ceded lands through legislation pending in the Capitol. Therefore, according to the Supreme Court, the State must still decide the fate of this issue.
Clearly, Native Hawaiians look to protect what they feel is their land. Some government representatives feel that there is a financial responsibility to these Native Hawaiians and that ceded lands should not be sold until these people have been fairly compensated. There is even the possibility that ceded lands be relinquished to family land claims as many would argue that the lands were stolen.
Still, both sides of this issue have solid arguments. According to some, the Admission Act recognizes the legality of the sale and transfer of these lands as does state law and the Hawaiian Constitution. In opposition of this position is the Akaka Bill. This bill has been before congress for nearly nine years and supporters feel there is a hope for this bill to be passed due to endorsement of President Barack Obama. The most current version of the Akaka Bill, presented to Congress on February 4th, seeks to create a process by which Native Hawaiians can gain self-governance, recognizes Native Hawaiians as the indigenous people of Hawaii, and strengthens the trust relationship between Native Hawaiians and a governing body within the U.S. government. However, the bill does not call for a suspension on ceded land sales and transfers and this would have to be an amendment to this or another bill. For example, Senate Bill 1677 calls for two-thirds approval from the Legislature with regards to transactions involving ceded lands. This bill provides an excellent opportunity to legislate the transfer, by sale or otherwise, of ceded lands. Essentially, this bill would ensure that Hawaii, its citizens and government, have final say over transactions involving these lands. Future legislation could also be developed to ensure the protection of ceded lands.
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- Apr
- 02
Announcement
The Smith Team proudly announces the addition of our latest member. Waiaulia (Graceful Flowing Water) Smith born March 31, 2009 at 8:53 A.M. Mom (Melissa), Dad (Greg), and baby are all doing well. Below are some photos taken at 8 hours after birth.
Baby
Baby Close-Up
Baby With Dad
Grandpa Ken and Waiauli
Mom and Baby
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