Kailua real estate – an overview

Situated south of Kaneohe and north of Waimanalo, Kailua has been popularly known as an enchanting beach town along the windward side of Oahu. It is also well-known for its panoramic view of nature, a welcoming neighborhood, and a stretch of pristine white sand beaches. While Kailua is only 12 miles away from Downtown Honolulu, the place still feels like it is an island of its own. It has the ambience of a well-developed city, with a wide range of amenities and exquisitely designed architecture.

In Kailua, you can enjoy your free time strolling across its shopping malls, upscale boutiques, and huge bowling alleys. Tourists who wish to visit the town of Kailua will also fall in love with its overall design in an instant. A short renovation project also breathed life into this stunning community. Locals and tourists can look forward to dining in its outdoor restaurants and shopping in its newly-built boutiques. Christmas and Fourth of July are considered as the peak season in this area.

Exciting events are also organized in this area on an annual basis. Every Thursday night, Kailua’s Farmer Market hosts an event that starts at 5:00 pm and ends at 7:30 pm. Another place that you should consider visiting during your stay in Kailua is the islands of Mokulua. It is easily accessible because you can reach it after a short kayak ride from the beach. The beautiful mountain ranges of Koolau can also be viewed anywhere in Kailua. It takes pride of jagged hills that were already featured in various movies and television shows.

Things to do in Kailua

While looking for Kailua homes for sale, you will also come across some facts about the Kailua Beach. Aside from being one of the world’s top beaches, the coastal scientist Stephen Leatherman also hailed it as America’s Best Beach. Here in Kailua Beach, you will find the whitest and finest sands. It also serves as one of the best sites for windsurfing because of its gentle ocean breeze and calm waters. Tourists can also enjoy spear fishing, scuba diving, surfing, and other water spots in this picturesque beach.

Golf lovers can also visit Olomana, Pali Golf Course, and Luana Hills for a short game of golf. Most of the year, Kailua has an excellent weather because of frequent rains and trade winds. If it rains, there is no point in worrying because it will only last for a few minutes. Beach-goers in Oahu can also bask in the beautiful tropical sun while planning the things they need to do for the rest of the day. Whether you wish to buy a vacation home or a rental property, Kailua real estate properties are certainly great investments.

Seal Beach houses and the rest of the Orange County residential market saw declines in median price over nine of the past ten months. Considering the brief boost the market received after the federal and state housing tax credits, it is unclear where exactly the market is in its overall cycle. Over the months of January, February, March, and April 2011, there were a total of 8.923 residential properties purchased throughout Orange County, representing a decline of approximately three percent compared to the first four months of 2010. However, that figure is thirty one percent lower than the historical average from 1988-2010. The rest of Southern California saw a similarly hesitant recovery, dropping to the lowest level in terms of median price in three years. Broadly speaking, there are a number of factors which have stymied local and regional recovery, including stricter lending policies, a sensitive job market, and a number of investors who have simply been hesitant to enter the market.

Broadly speaking, the economies of Southern California, Orange County, and Huntington Beach have not been performing terribly. The number of jobs in the region has increased, unemployment has fallen, and interest rates on mortgages remain near an all time low. At the same time, a number of factors have prevented buyers from rapidly acquiring Huntington Beach homes for sale. For instance, despite low mortgage rates, credit in general remains tight, and some buyers are simply unwilling to enter the market. Additionally, there are a considerable number of so-called “underwater” homes on the market in Orange County that continue to threaten destabilization of the market. These underwater properties, which often come to market in the form of short sales or foreclosures, tend to depress the median price when they are purchased. Although the number of foreclosures has decreased lately, this can be attributed more to difficulties in processing distressed properties than to any substantive improvement in the overall real estate market.

Two months ago, the chief economist of the National Association of Realtors named Coastal Carolina as the country’s No. 1 emerging market at the trade group’s conference in New Orleans, said Deb Quaranta, president of the Wilmington Regional Association of Realtors.

The real estate maxim of “location, location, location” is really second to “timing, timing, timing.  It’s not a flipper’s market where you can get in and out in six months, but if you’re willing to buy a home and you’ve got a two-, three-, four-, five-year outlook, there is still some very positive appreciation to be had. The beauty of a house as an investment is that it can be a home. Even if you have to hold on for a turn in the market, you still live in it, clearly not possible with stock, bonds or even multiple homes.

With current market conditions interest rates are at a historic low making “timing” the key factor right now.  The 30-year fixed-rate mortgage is forecast to rise gradually to 5.3 percent around the end of 2011; at the same time, unemployment should drop to 9.2 percent, according to NAR.  If the first part of January is any indication of how the real estate market in 2011 is going to be in Coastal Carolina’s than the trend is looking up.  As of January 17th the Wilmington Regional Association of Realtors reported that 95 homes have gone under contract.   With housing and interest rates still relatively low, it’s definitely the right time to buy in the Coastal Carolina Area.

The Makena real estate market, one of the more resort-heavy and tourist-friendly sectors of the larger Maui real estate market, seemed to be still showing signs of strength despite an extremely high rate of foreclosure. According to a May 20, 2010 article from the Lahaina News, “The market is starting to turn, indicated by the increase in unit sales…Anecdotal evidence from agents, lenders and escrow personnel indicate that a good portion of the transactions in process (not yet closed) are outside the tax credit program, and that there is strong buyer-showing activity that should result in future sales.” The piece went on to note that “Condo median prices are showing some small upticks. The inventory includes many short sales and REO (bank owned) properties that will need to be absorbed as sales before we can move ahead to a more normal marketplace, at which time prices will start to rise. Interest rates have started to rise from historic record lows, which may also motivate would-be buyers to go ahead and buy.”

One of the largest examples of Makena real estate, the massive Makena Beach & Golf Resort, was recently purchased at a government-mandated auction. According to a May 29, 2010 article from the Honolulu Star Bulletin, “The lender in the Makena Beach & Golf Resort foreclosure case ended up being the highest bidder for the property, but that might not last long. A court-mandated public auction for the Maui property was held at the Maui County courthouse yesterday morning.” The piece, written by Gene Park, continued to say that “Wells Fargo Bank had the highest bid at $55 million. The financial institution is owed more than $192.5 million in principal, plus interest and other costs on its mortgage loan. The only other bidder, who wished not to be disclosed, put in a bid for $50 million.”

This same news, which might help to stabilize the fortunes of Makena homes for sale, was mentioned in a May 28, 2010 piece from KITV News. This report said that “The bid was submitted on behalf of Wells Fargo Bank as trustee for the mortgage lending trust that foreclosed on the former Maui Prince Hotel last year…The 310-room hotel sits on 1,800 acres of East Maui.”

The average price of a Palm Springs home for sale, along with the average sales price of other Coachella Valley communities’ homes for sale, rallied in the month of April. According to a May 29, 2010 article in KPSP 2 News, “If you’re trying to sell a home or condo in the valley there is some good news. Compared to the same time period last year home prices are up quite a bit…According to a report just released from the Palm Springs Regional Association of Realtors, the median home price in the Coachella Valley rose 31% in April, compared to the same time last year.” The article by Jackie Pedroza went on to say that “The median price jumped from $150-thousand dollars to more than $190-thousand dollars…Currently across the valley, there are around 5 thousand active listings for homes and condos. Of those 40 percent are priced at or below 300-thousand dollars.”

This same positive news for the Palm Springs real estate market was reported on by a May 25, 2010 article in the Desert Sun. This piece found that “The median price for Coachella Valley home sales in April rose 31 percent in April compared to the same time last year, Palm Springs Regional Association of Realtors data show. It rose to $197,040 from the $150,140 median in April 2009.” The article by Debra Gruszecki continued to say that “Scott Newton, president of the Palm Springs Regional Association of Realtors, said the April numbers show a market that is moving out of high-season and is so focused on median price that inventory is getting low. ‘That creates higher demand,’ he said. ‘Higher demand creates slightly higher prices.’”

A high foreclosure rate has led to growth in the number of short sales among Palm Springs real estate, according to a May 23, 2010 article also in the Desert Sun. This piece noted that “With foreclosures continuing to pummel the Coachella Valley floor and home values dropping real estate agents are working with property owners in bigger numbers to drive short sales…Real estate experts say they’re seeing spurts of multiple bids and cash buys on homes priced below $250,000 by investors with deep pockets, buyers from other states or residents with equity in their home, a move-up mentality or frazzled nerves from a volatile stock market.”

The Colorado real estate market seems to be rallying strongly, especially when considering the metropolitan areas of Denver and Colorado Springs. Although foreclosures continue to increase slightly, the inventory of foreclosures is being cleared more rapidly than in previous months. This is according to a May 13, 2010 article in the Denver Business Journal, which found that “Foreclosure sales in Colorado shot up 53.6 percent in the first quarter of 2010 from the same period a year earlier, and new foreclosure filings rose 6 percent, the Colorado Department of Local Affairs’ Division of Housing reported Thursday.” The piece by Mark Harden continued to say that “But officials said the year-ago foreclosure-sales total was pushed down by a national moratorium on processing foreclosures. They said that between first-quarter 2008 and first-quarter 2010, a comparison that straddles the moratorium, foreclosure sales rose a more modest 13.3 percent, or an average of 6.7 percent per year.”

Colorado homes for sale in Denver sold for slightly more compared to last year, according to a May 11, 2010 article in the Denver Business Journal. This article found that “Single-family home prices in metro Denver slipped in March from the previous months but rose 4.1 percent from 12 months earlier, according to a report Tuesday from Integrated Asset Services LLC.” The piece, written by Mark Harden, continued to say that “The monthly ‘IAS360 House Price Index’ report from IAS, a Denver-based default-mortgage services company, said the median single-family home price in the Denver-Aurora metro area declined 0.7 percent in March, following a 0.2 percent rise in February. But year over year, the index showed a 4.1 percent increase in the area’s median price between March 2009 and March 2010.”

Colorado real estate in the Colorado Springs area also rallied strongly in recent months, according to a May 5, 2010 article in the Colorado Springs Gazette. The piece, written by Rich Laden, continued to say that “Colorado Springs-area home prices and sales rose again last month, the latest in a string of improved showings the local resale market. Home sales totaled 792 in April, an 11.9 percent increase over the same month last year, according to a Pikes Peak Association of Realtors report.”

The Newport Beach real estate market is currently showing mixed signs, but is one of the riskiest housing markets in the country. According to a May 12, 2010 article in the Orange County Register, “New National Association of Realtor home price data for metropolitan areas shows an Orange County house costing 2.93 times what the median-priced American home sold in the first quarter. That’s no bargain, despite a horrific drop in local home prices: Last time this so-called ‘Orange premium’ was this high was 2008 as the market was toppling.” The piece by Jon Lasner continued to say that “Curiously, this ‘Orange premium’ in this downturn did not hit the lows seen in the mid-1990s real estate recession. The index bottomed at pricing of 2.38 American homes for my ‘Orange premium.’ The recent upswing in the ‘Orange premium’ could mean that the emerging firmness in local house pricing may be ahead of the overall economics.”

The average price of a Newport Beach home for sale, along with Orange County in general, rallied in the month of March, according to an April 22, 2010 article in the Orange County Business Journal. This piece found that “The median price of an existing Orange County home rose by more than $10,000 in March from February, spurred in large part by low mortgage rates and generally affordable prices, the California Association of Realtors said on Thursday.” The piece, written by Mark Mueller, continued to say that “The median price for an existing stand-alone OC home sold in March was $493,120, a 2% increase from February, and a nearly 11% increase from a year ago. The number of sales here in March jumped 39% from a month ago, and was up about 15% from a year ago, the Realtor association said.”

This good news for Newport Beach real estate, however, still does not alleviate the huge risk involved in the Orange County real estate market. According to a May 2, 2010 article in the OC Metro, “Orange County’s housing market is among the riskiest in the nation, according to a new study from Walnut Creek-based PMI Group.”

The Las Vegas real estate market continues to be one of the most distressed areas in the entire nation, with home sales continuing to decline and foreclosure rates remaining at extremely high levels. According to a May 10, 2010 article in the Las Vegas Sun, “The federal tax credit designed to spur home sales appears to have ended on a whimper in Las Vegas and may foretell a downturn in the housing market in the coming months, analysts said. The Greater Las Vegas Association of Realtors reported Monday that sales in April fell 7 percent compared to March and dropped nearly 8 percent compared to April 2009.”

The piece, composed by Buck Wargo, continued to say that “The drop off in the year-over-year sales is the first since March 2008. The decline was unexpected since April was the last month for buyers to sign contracts for new and existing homes. Dennis Smith, president of Home Builders Research, who monitors the Southern Nevada housing market, said he believes the drop off in sales is a reflection of the declining amount of foreclosure properties in the market.” The only potential bright spot for the Las Vegas real estate market was a slight increase in home prices as reported by Fox 5 News.

The extremely high rate of foreclosures facing Las Vegas homes for sale was reported in an April 29, 2010 article in the Atlantic. This piece said that “Maybe they should call it Foreclosure City instead of Sin City. Las Vegas was again the source of the highest foreclosures density in the U.S. during the first quarter, according to a new RealtyTrac report documenting foreclosure rates in the 209 largest metropolitan statistical areas. It had an incredible one foreclosure for every 28 properties. That’s even worse than Nevada’s overall 1-in-33 foreclosure rate for the quarter. The city’s foreclosure density was also nearly 5x the national average.” The article, written by Daniel Indiviglio, continued to say that “Las Vegas is a prototypical example of this phenomenon. It has 19% fewer foreclosures than a year earlier, but 13% more than a quarter earlier.”

The Birmingham real estate market is showing strong signs of a recovery, although there are a few indications of continued trouble, such as a slight bump in foreclosure rates. According to a May 7, 2010 article in the Birmingham Business Journal, “Home sales across the Birmingham area received a boost in April, according to the Birmingham Realtors Association. Las month, home sales jumped 19 percent year-over-year as Realtors reported 1,061 sales compared to 887 in April 2009. And year-to-date, the total jumped 7 percent to 3,248 homes compared with 3,030 homes the previous year, according to data collected by the association.” The article, written by Crystal Jarvis, continued to say that “The average price of a home sale increased by 4 percent within the past year and the median price is up 3 percent, data shows. However, the average days a home was left on the market jumped to 15 days in April compared to 108 days in April 2009.”

A May 7, 2010 article in the Birmingham News reported the same basic trend for Birmingham homes for sale. According to the piece, “Metro Birmingham home sales jumped 19 percent last month, bolstered by federal tax credits for homebuyers, which expired April 30. The Birmingham Association of Realtors said today that 1,061 homes were sold in April, compared to 887 in April 2009. The average price was $171,992, a 4 percent rise, while the median price was $145,200, up 3 percent.” The article, written by Dawn Kent, continued to say that “The strong results also boosted year-to-date sales. So far this year, metro area home sales total 3,248, a 7 percent improvement from the first four months of 2009. Heavy promotions targeting homebuyers were common in April.”

The one potential trouble spot for Birmingham real estate was a higher rate of foreclosures, as reported by a May 13, 2010 article in the Birmingham Business Journal. The article, composed by Lauren B. Cooper, noted that “Alabama foreclosures rose modestly in April, as the nation saw its first yearly decrease in some time according to a new report. RealtyTrac, a national tracker of foreclosures, said there were 2,411 properties in some form of foreclosures in April in the state, or one foreclosure for every 895 households.”