You've once again returned home from vacationing on the Big Island's Kohala Coast thinking about buying a second home in the area.  You stayed at a fabulous hotel, and you played golf at Mauna Kea Resort.  While you were there, you saw the oceanfront tennis courts and Kauna'oa Beach - the best beach on the Big Island.  Hmmm.  Maybe this is a good place to buy your Hawaiian vacation home, or company retreat.  But you're not sure.

Try before you buy!  Many Mauna Kea Resort luxury homes are available to rent.  Condos with huge ocean views located on the golf course start around $500 per night.  Very large ocean view homes are also available.  If you would like a brochure describing the available properties, just give me a call. October is the time to book accommodations for the holidays.  I would be happy to suggest a variety of things to do and see while you are here. A hui hou!

I just read the October/November edition of The Robb Report Vacation Homes magazine.  The article "insuring your vacation home against visitor mishaps," by John Morrell and Nikki Swink, had some very good information for second home owners.

We know home insurance protects us when a guest hurts herself while visiting.  But did you know there is insurance specifically for vacation homes?  If you don't have it already, it's a good reason to touch base with your insurance broker.  Your broker will want to know if the home will only be used by you, or will you rent it?  How many days a year will it be used thus?

You may have decided to insure your vacation rental as an owner-occupied residence to save money on the premium.  Your policy may then be void should a tenant injure herself.   What if you don't rent it, but you occasionally loan it to friends?  Then your policy needs a guest provision.  You may want this provision to cover your guests against wrongful entry or eviction.

If you own a condotel or conhotel, be sure to provide your insurance broker with copies of that neighborhood's bylaws and rental management agreement.  You want to be certain your policy is written to accommodate this new breed of real estate.

Do you already have the correct policy on another vacation home?  Ask your insurance broker if an umbrella policy would be a good fit.  Be sure to share how the properties are held.  Are they in a trust, LLC, partnership or corporate entity?  

As you know, how your vacation home is used may also have tax consequences, either now or when you want to sell.  If you are on the ball with your 2008 taxes and are talking to your CPA this month, you might check to make sure you are on the same page in this respect.

If all this has got you thinking about your next visit to relax in your beautiful Big Island vacation home, please don't forget to stop by my Mauna Kea Resort office on the Kohala Coast and say hello!  I love to talk story.

Last week I returned from a short Moloka'i neighbor island vacation to a crashing stock market.  I was glued to CNN for two days.  I was at the office on Saturday (with the CNN live video feed on my monitor), and I saw an interesting Pacific Business News article in my inbox: "Home sales volume falls across the state, but prices hold steady." I was doubtful.  Yes, resort home and condo prices are pretty much holding steady, but what about the other neighborhoods?   I have been watching prices slip in North Kona and South Kohala.

To determine which price points are relatively hot, I took a look at what properties are currently under contract in South Kohala.  This area includes the Big Island's Kohala Coast and its luxury resort and second home neighborhoods.  It also includes the two large primary resident neighborhoods of Waikoloa Village and Waimea (aka Kamuela).

The price point most condos are selling at is $250,000 to $350,000.  Most single family homes are selling in the $400,000s.  Yes, there are pending sales all around these prices, but these numbers were most numerous in their respective bells curves.  I expected them to be mostly short sales, or pre-foreclosures.  But this is what I found:

Of the 15 pending condos, four are short sales and six negotiated developer incentives.  When it comes to condos in South Kohala, the Seller concessions appear hefty enough to get Buyers to buy, even during our volatile 2008 market conditions.

Of the 25 pending single home sales, three are short sales and five negotiated developer incentives.  The large majority of these pending home sales are not distressed properties.  I was surprised by that.  Most of the 25 homes are located in Waikoloa Village, which both local residents and second home owners like.  The Village's 15 minute drive to the nearest Kohala Coast beach, activities, shopping and good restaurants is most likely a key reason.  The next most popular "affordable" neighborhoods are leeward and windward Waimea.  I recently learned that the Robb Report named Waimea as one of the 10 most desirable places to live in the country in 2000.

Regarding Kohala Coast luxury homes, defined as those listed above the area's median sales price, there are three pending condo sales and four pending home sales.  The pending luxury condo price range is $1.8M to $4M.  The pending luxury single family price range is $3.4M to $9.5M.  Since my primary market niche is resort luxury, my educated guess is there are considerable concessions being negotiated for these homes as well.  

Overall, though, I agree with Friday's Pacific Business News article.  Hawaii real estate is holding steady.  Yes, sales volume continues to slip, but because so many homes were purchase with a lot of cash, the state's real estate market is in a pretty good position.  That said, for those who purchased at the end of the recent boom, now is a great time to seek out those Sellers and discover who is truly motivated.  If your dream is to "live Hawai'i," this is a good time to ask your trusted Realtor to start identifying the opportunities.  If Big Island Hawai'i tennis and golf resort properties are high on your list, I have the data you need for your favorite neighborhood or price range.  Aloha nui!

When you think of moving to Hawaii, you probably don't think about what it's like to live with feral rooster families.  Well, if you really are moving to Hawaii, and you're moving to the country, your new neighbors may include roosters.  There may be a lot of them.  And they crow all night long when the moon is bright.  All of them.  Today I found this story about living with chickens on Kauai which is worth a read.  You'll be in luck if your feathered neighbors are feral.  You won't be so lucky if the racket comes from the house next door where your neighbor is raising fighting cocks.  Most planned neighborhoods in Hawaii do not allow barnyard animals. It just so happens I have a list of these communities along the Kohala Coast, and I'm happy to share! 

There's one thing you'll soon notice after moving to Hawaii: all of the charitable events. Honolulu Magazine has a Kokua section that's always packed with events to be held around the state. The local newspaper is also good about publishing event calendars.  There's a golf tournament to raise money for this; a silent auction to raise money for that.  I do not jest when I say attend as many as you can.  Not only do you earn good karma by giving, it is common to leave with a prize or an experience worth more than the cash spent to attend!

Next month the Brantley Center (P.O. Box 1407, Honokaa, HI 96727; 808-775-7245) is holding their annual tennis fundraiser at Mauna Kea Resort's spectacular Seaside Tennis Club.  The Brantley provides rehabilitation and vocational training for those with mental illnesses.

If you are a tennis player and you plan to be on Hawaii Island during the end of July, contact me for entry details.  How often do you get a chance to play on oceanfront tennis courts?  Don't forget your camera.  You'll need evidence when you tell your friends your ball bounced off the court and into the surf.

King Kamehameha Day is quickly approaching.  If you are on the Big Island next Wednesday June 11, plan to get to Kapa'au by 7:30 AM.  The opening ceremonies begin at 8:00, and you need time to park at the Park and walk to the King's statue. 

Bring your camera for the colorful pa'u parade and the statue's lei hanging ceremony.  Better if you have a telephoto lens. 

After the opening ceremonies, a very short drive back to Hawi will get you to the hula demonstrations and Hawaiian music.  Eat a light breakfast so you can enjoy all the festival food!

Here on Hawaii Island's Kohala Coast, nine out of ten people who hire me to find their Hawaii residence want a second home in a luxury resort neighborhood.  Every once in a while someone walks in the door looking for a non-resort primary residence.  They want "old Hawaii."  If they don't need to work, or can do so in Waimea (Kamuela) or Hilo, I direct their attention to the Big Island's Hamakua Coast. 

Living in the rain, and lots of it, must not only be okay, preferably that will be ideal.  A rain forest lifestyle isn't for everyone.  You may have to commute 45 to 60 minutes to play tennis and golf, or to deliver the kids to the island's best school.   Living with mold, mildew and feral roosters is part of the deal. 

The payoff is spectacular scenery, an extremely small town rural life, affordable Hawaiian acreage possibly with its own waterfall, and an opportunity to grow organic vanilla or exotic fruit and flowers in ideal conditions.  I even know of a tree house - literally - for sale in a sacred valley.  A Hawaiian rainforest attracts a special family.

If you think you might be that special family, today little plantation home fixer uppers start in the $200,000s, and beautiful estates top out at nearly nine million.  This afternoon I prepared a snap shot of Hamakua Coast improved real estate trends, using Hamakua and North Hilo district numbers: 

•·         This year from January to May 7 homes sold with a median sale price of $460,000.

•·         In 2007 from January to May 12 homes sold with a median sale price of $375,000.

•·         In 2006 from January to May 16 homes sold with a median sale price of $440,000.

•·         In 2005 from January to May 26 homes sold with a median sale price of $356,000.

Newcomers don't want the Hamakua.  They want the dry leeward island weather for endless blue sky days and plenty of dry weather recreation.  The folks who've been here long enough to slow down to Hawaii Time, or folks leaving the Honolulu city lights, they are the ones to whom the Hamakua calls.  As this year's median sales price tells us, more local folks are willing to pay more to make the move to the rain forest.  I expect the trend to continue into 2009.

Curious? The next time you visit the Big Island, call me for a custom home tour of that beautiful place.  Be sure to wear shorts and hiking sandals under your hooded rain coat to easily drip dry!

I was watching PBS last night and saw an advertisement for the Independent Lens documentary "The Men of Na Kamalei."  It is one of the best programs I have ever seen about men's hula.  The first broadcast in Hawaii was three weeks ago, and it is being aired again this week. 

If you would like a treat, check to see if your PBS station is still airing the show.  It's a good one.  For those of you off island, if you are thinking about visiting next April to see the Merrie Monarch Festival, make your accommodation reservations now.  Rooms can be tough to get.

Last week we took a Captain Zodiak snorkel trip to Captain Cook's Monument.  Wow was it busy!  But the fish didn't seem to mind all the people.  They just keep munching away at the coral and algae.

We received a great tip from Captain Chris which I want to share.  Like the Mauna Kea Resort, the Sheraton in Kona has flood lights pointed on the water for manta ray viewing.  He said a public access shoreline trail is just a stone's throw from the viewing area. 

Michael and I are going to buy a diver's night light to snorkel with the mantas.  I'll let you know how it goes!  If you've already done it, I love to hear about it.

Whenever I speak to my Kohala Coast, Hawaii Island prospective buyers, they ask "how's the market?"  I tell them it depends. Are you asking about the number of unit sales, or median sales price?  Are you asking about all of South Kohala, or only the luxury resort market segment?  For this discussion, luxury is defined as homes and condos above $925,000.  To my knowledge that's the least expensive unit within a tennis and golf resort with a nice ocean view.  Condos currently offered under this price have peek-a-boo views at best, and most have no view at all (with the occasional exception of course).  Since it was a quiet day at the office, I looked at recent MLS sales statistics for today's snapshot of the local resort market. 

Like a lot of places, Kohala Coast real estate sales were hot and inventory was extremely limited through late 2005. Then the number of annual unit sales began to slide.  But, as inventory and selection have improved, the median South Kohala sales prices have continued to rise.  Because this is counter intuitive, each month I look at the statistics to try to accurately follow and interpret the trend.  Through the first quarter of 2008 prices here continue to rise.

Here are the unit sales numbers and median sales price percentage increases and decreases for all improved residential real estate in South Kohala over the years beginning with 1998:
1998 unit sales increased 19% over 1997; the median sales price decreased 4%
1999 unit sales increased less than 1% over 1998; the median sales price increased 7%
2000 unit sales increased 16% over 1999; the median sales price increased 4%
2001 unit sales increased 1% over 2000; the median sales price increased 1%
2002 unit sales increased 20% over 2001; the median sales price increased 14%
2003 unit sales increased 27% over 2002; the median sales price increased 18%
2004 unit sales increased 32% over 2003; the median sales price increased 44%
2005 unit sales decreased 5% over 2004; the median sales price increased 29%
2006 unit sales decreased 12% over 2005; the median sales price increased 5%
2007 unit sales decreased 35% over 2006; the median sales price increased 3%
2008 first quarter unit sales decreased 13% over 2007; the median sales price increased 3%

Here are the unit sales numbers and median sales price percentage increases and decreases for luxury resort improved residential real estate in South Kohala over the years beginning with 1998:
1998 unit sales increased 41% over 1997; the median sales price increased 17%
1999 unit sales increased 21% over 1998; the median sales price increased 13%
2000 unit sales decreased 4% over 1999; the median sales price increased 33%
2001 unit sales decreased 12% over 2000; the median sales price increased 14%
2002 unit sales increased 60% over 2001; the median sales price decreased 8%
2003 unit sales decreased 8% over 2002; the median sales price decreased 29%
2004 unit sales increased 86% over 2003; the median sales price increased 23%
2005 unit sales increased 39% over 2004; the median sales price increased 3%
2006 unit sales increased 38% over 2005; the median sales price increased 9%
2007 unit sales decreased 15% over 2006; the median sales price decreased 9%
2008 first quarter unit sales decreased 24% over 2007; the median sales price increased 40%

Although the all South Kohala improved property absorption rate is currently 18 months, prices continue to trend up.  While the absorption rate for luxury resort properties is currently a staggering 24 months, the first quarter of 2008 saw a 40% increase in price over the same period in 2007.

If you would like a similar analysis for a particular South Kohala neighborhood, let me know.