Home Prices Increase 13.2 Percent in October 2012

According to a report released by CoreLogic, home prices in Hawaii increased by 13.2 percent in October as compared to the same month a year prior. This increase ranked Hawaii as the second highest state in the country in terms of home price increases behind Arizona which saw a 21.3 percent increase. Nevada and Idaho tied for third with 12.4 percent increases. CoreLogic’s study, showed that home prices nationally had increased 6.3 percent from October 2011 to October 2012.

The University of Hawaii Economic Research Organization (UHERO) had predicted that single family home prices for the island of Oahu would increase by 6.8 percent in 2013, 7.7 percent in 2014 and 10.8 percent in 2015. If accurate, this would increase the median home price to $800,100 in just three years. UHERO believed that condominium prices on Oahu would increase by 5.9 percent in 2013, 7 percent in 2014, and 8.6 percent in 2015. This would mean that the median condominium price on Oahu would be $387,300 by 2015.

Source: Honolulu Star Advertiser, 12-5-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Hawaii Bankruptcy – Filing Down in November 2012

According to the U.S. Bankruptcy Court, District of Hawaii, there were a total of 211 new personal and business bankruptcy filings in November 2012.  This was a decrease of 12.8 percent as compared to the same month a year prior and represented the 21st consecutive month of decrease in bankruptcy filings for the state.  Out of these 128 were filed in Honolulu County, a decrease of 7.2 percent, 45 were filed in Maui County, a decrease of 18.2 percent, 29 were filed in Hawaii (Big Island) County, a decrease of 17.1 percent and 9 were filed on Kauai, a decrease of 35.7 percent.

Source: Honolulu Star Advertiser, 12-4-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Honolulu Rail Project – First Audit Finds Flaws But No Material Weaknesses

The Honolulu Authority for Rapid Transportation had hired PKF Pacific Hawaii to do an outside audit of the financial books for the first year of the $5.27 Billion Honolulu Rail Project.  What PKF Pacific Hawaii found was several minor flaws and mistakes in the accounting practices, but in general found no material weaknesses.  Specifically, the audit found that HART staff members had placed sums of money into wrong categories for accounting purposes, but the money did turn up and was spent correctly.  PKF Pacific Hawaii suggests that the Honolulu Authority for Rapid Transportation hires additional staff members and improves on their financial reporting process.

City officials stated that the mistakes were made in part because the Honolulu Rail Project was originally under the Department of Transportation Services (DTS) before being transferred to the Honolulu Authority for Rapid Transportation (HART).  Chief Financial Officer of HART, Diane Arakaki stated, “As a newly formed agency, HART acknowledges its lack of accounting and financial reporting resources, and has placed a high priority on developing a qualified and experienced accounting staff.” Arakaki assured the public that these problems should not reoccur in future years.

Source: Honolulu Star Advertiser, 12-4-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Hawaiian Airlines to Offer Service to Taipei

Hawaiian Airlines has announced that starting the summer of 2013, they will be offering nonstop service from Honolulu to Taipei. President and CEO of Hawaiian Airlines, Mark Dunkerley, stated, “We have long known that there is demand for a Hawaii vacation in Taiwan, but visits have been impeded by the cost, complexity and time it has taken its citizens to apply for a U.S. visitor visa. Now that Taiwan is part of the U.S. Visa Waiver Program, we are delighted to be adding Taipei as the latest city in Hawaiian’s growing Asia network. This new flight will help to further increase arrivals from this region. Following Korea’s entrance to the Visa Waiver Program, arrivals from Korea have increased by double digits year over year. With the re-establishment of nonstop service, we would anticipate seeing similar growth from Taiwan.” Hawaiian plans to offer this service three times per week.

Source: Honolulu Star Advertiser, 12-3-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Number of Low Income Households Receiving Cash Subsidies Increase Dramatically in Last Five Years

According to a study released by the state of Hawaii’s Department of Human Services, in 2012 approximately 17,050 low-income households receive some type of cash subsidy, either state or federally funded, each year. This is an increase of almost 20 percent since 2007 and an increase of approximately 5 percent from the last fiscal year alone. Experts believe that this increase is partially due to families having run out of unemployment benefits or having spent any saving that they previously had. University of Hawaii’s Center on the Family specialist Ivette Stern stated, “A lot of what we’re seeing is what we call the lagging indicators, where the economy is getting better but now is when you’re seeing some of the punch of the downturn. The families that were on the edge are still struggling and will be struggling.”

Most families receive cash help through the federally funded Temporary Assistance for Needy Families program. The average cash benefit for TANF families is $559 per month. The state of Hawaii also offers a Temporary Assistance for Other Needy Families program, which provides an average cash benefit of $355 per month. Those who are elderly or disabled can get additional funding with their average cash benefit of approximately $300 per month.

According to the U.S. Census Bureau, in 2011 a total of 2.9 percent of the nation’s household had received welfare benefits. However, that year, a total of 4.3 percent of Hawaii households received welfare, which ranked Hawaii as one of the highest welfare participation rates in the country.

Source: Honolulu Star Advertiser, 12-2-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Whitmore Circle Apartments in Wahiawa to Get $2.4 Million in Improvements

The Whitmore Circle Apartments in Wahiawa is an affordable rental complex for seniors. The Vitus Group Inc., who purchased the complex in 2011, has announced that they will spend $2.4 million in improvements for the project including doing interior upgrades, expanding the community center, building outdoor gazebos, adding photovoltaic panels and installing new appliances and fixtures. Under their terms of ownership, the Vitus Group only allows elderly or disabled tenants who earn no more than 50 percent of Honolulu’s median income. The Vitus Groups owns over 7,000 affordable-housing units in 14 states across the nation.

Source: Honolulu Star Advertiser, 12-1-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Big Island Real Estate – Hilo Medical Center to Get $3.7 Million for Improvements

The Hilo Medical Center on the Big Island of Hawaii will be getting $3.7 million in state funding for improvements. According to Governor Neil Abercrombie, the capital improvement funds represent an investment in Hilo Medical Center as an essential part of our public hospital system. As elements of the Affordable Care Act come online, we must continue to invest in our health care infrastructure to ensure that facilities are ready to provide access to quality health care for all the people of Hawaii.

Specifically, the money would be broken down as follows:

$1,052,000 to renovate acute care unit
$728,000 to replace medical center’s atrium wall and roof
$650,000 to repair leaking roofs
$350,000 to replace chiller pipes for air conditioning systems
$235,000 for parking lot improvements
$233,000 to demolish an old building that is partially collapsed
$200,000 to build storage tanks
$134,000 to replace add a masonry wall around the behavioral health unit

Source: Honolulu Star Advertiser, 12-1-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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