715 S. Kihei Rd. #B212, Kihei, Maui, Fabulous Studio Condo For Sale

Welcome to this lovely studio with spacious vaulted ceilings and a large sliding glass door which fills the unit with light. Our lovely tradewinds and cross breeze flow through this 2nd floor unit with covered lanai where you can enjoy the beautiful garden full of mature fruit and flowering trees, Haleakala mountain, and peek-a-boo ocean views. The sweet scent of plumeria permeates the air. This studio is being sold turnkey, fully furnished with a new sofa bed couch, stocked kitchen, linens for the queen sized bed, dining set, flatscreen TV, AC, and beach items. The flooring was recently upgraded with luxury vinyl throughout with a nice walk-in shower supplied by a new tankless water heater. Kihei Bay Surf amenities include a pool, heated jacuzzi, bar-b-que areas, and newly updated tennis courts and laundry facilities. Kalepolepo Beach Park is across the road, a lovely place for sunbathing, swimming, daily sunsets, Honu (Turtle) and whale watching. Also, right across the road is the Whale National Sanctuary Visitor Center, Ancient Hawaiian Fish Pond fka Ko’ie’ie Loko I’a, and canoe paddling. You can experience the nearby famous shaved ice, farmer’s market, park, and Sugar Beach. This unit is currently being utilized as a short-term vacation rental, but could make for a primary residence or 2nd home. The maintenance fee includes electric, water, sewer, refuse, trash, basic cable, internet, common area maintenance, and exterior insurance.

See this listing at my website www.FindMauiProperty.com where you can also find Helpful Resources.

Going Green In Homes

Via Cedar Valley Sentinel

“Sustainable Home Features Worth Investing In

As sustainability becomes an integral part of modern living, many homeowners are now looking to create environmentally friendly homes that reduce their carbon footprint and increase the value of their properties. By incorporating sustainable home features, you can save energy, conserve water, and improve the overall comfort of your home. Whether you’re renovating or building from scratch, it’s important to consider eco-conscious features that will benefit the environment and your wallet in the long run.

Energy-Efficient Windows: A Smart Start

Energy-efficient windows are one of the best investments for a sustainable home. These windows are designed to prevent heat loss during the winter and keep your home cool in the summer by minimizing the amount of solar heat that enters. This reduces the need for artificial heating and cooling, lowering energy consumption. With double or triple glazing and low-emissivity coatings, energy-efficient windows can significantly reduce your home’s carbon footprint while providing year-round comfort.

Solar Panels: Powering Your Home Naturally

Harnessing the power of the sun with solar panels is a key sustainable feature that has gained immense popularity. By installing solar panels, you can generate your own electricity and drastically cut down on utility bills. Solar power is a clean, renewable source of energy that reduces reliance on fossil fuels. Over time, the energy savings offset the cost of installing solar panels, making them a worthy long-term investment. Additionally, many governments offer tax incentives or rebates for homeowners who install solar panels, making the transition to green energy even more affordable.

Insulation: The Foundation of Energy Efficiency

A well-insulated home is essential for sustainability. Insulation helps maintain a consistent indoor temperature, reducing the need for winter heating and summer cooling. Upgrading your home’s insulation from attic insulation to insulated walls and floors can lead to significant energy savings. Look for eco-friendly insulation materials like sheep’s wool, recycled denim, or cellulose made from recycled paper. These materials offer excellent thermal resistance and have minimal environmental impact during production.

Geothermal Heating and Cooling: Utilizing Earth’s Energy

Geothermal systems are an innovative way to heat and cool your home using the earth’s constant temperature. By circulating water or refrigerant through underground pipes, geothermal systems efficiently transfer heat to and from your home. Although the initial installation cost may be higher than traditional systems, geothermal heating and cooling can reduce energy use by up to 50%, making it a cost-effective, sustainable solution. It’s an ideal choice for homeowners committed to reducing their environmental impact with these home features.

Water Conservation Systems: Reducing Water Usage

Water conservation is another critical aspect of sustainable home design. Low-flow fixtures, such as faucets, showerheads, and toilets, can drastically reduce water use without sacrificing performance. Additionally, installing a rainwater harvesting system allows you to collect and reuse rainwater for landscaping, toilet flushing, or even washing clothes. Gray water systems, which recycle water from sinks, showers, and washing machines for irrigation or toilet flushing, are also excellent for minimizing water waste.

Smart home technology can play a significant role in making your home more sustainable. Thermostats, lighting, and appliances can reduce waste and optimize efficiency by automating energy usage. For example, a smart thermostat learns your schedule and adjusts the temperature accordingly, ensuring that heating and cooling systems only run when necessary. Smart lighting systems can be programmed to turn off when no one is in the room, saving both energy and money. The convenience and control smart technology offers make it an easy and impactful upgrade for any sustainable home.

Green Roofs: A Natural Solution

Green roofs, or living roofs, are an innovative, sustainable feature that not only enhance the aesthetics of a home but also provide environmental benefits. A green roof is covered with vegetation, which helps insulate the home, reduce stormwater runoff, and improve air quality. The plants on a green roof absorb carbon dioxide and release oxygen, contributing to cleaner air in urban areas. Moreover, green roofs create a habitat for local wildlife, adding biodiversity to your property.

Sustainable Building Materials: Choosing the Right Products

When building or renovating, opting for sustainable materials is a key aspect of eco-friendly design. Look for recycled, locally sourced, or renewable materials, such as bamboo, reclaimed wood, and recycled steel. These materials reduce the environmental impact of construction while also being durable and aesthetically pleasing. Using non-toxic paints, adhesives, and finishes is also crucial to maintaining a healthy indoor environment and improving air quality.

Energy Storage Systems: Maximizing Renewable Energy

To further enhance the sustainability of your home, consider investing in energy storage systems. Battery storage units, like those used with solar panels, allow you to store excess energy generated during the day for use at night or during power outages. This increases your home’s energy independence and maximizes the benefits of renewable energy systems by reducing reliance on the grid. Energy storage is a forward-thinking solution that future-proofs your home against potential energy crises.

Relocating Sustainably

As you make your home more sustainable, you might also consider the impact of your lifestyle choices, including moving. If you’re moving from New Hampshire to Utah and hiring state to state movers, it can ensure a smooth transition. By choosing experienced movers, you can relocate here with ease. Consider using eco-friendly packing materials, such as reusable boxes or biodegradable packing peanuts, to make your move more sustainable.

Passive Solar Design: Working with Nature

Passive solar design is a technique that uses the sun’s energy to heat your home naturally, without the need for mechanical systems. By positioning windows, walls, and floors to collect and store solar heat during the winter and block out excess heat during the summer, passive solar design reduces the need for artificial heating and cooling. Incorporating thermal mass materials, such as concrete or stone, helps absorb and retain heat during the day and release it at night. This design approach effectively reduces energy consumption and creates a comfortable living environment year-round.

Conclusion: The Future of Sustainable Home Features

Investing in sustainable home features is not just about reducing your carbon footprint; it’s about creating a healthier, more comfortable living environment that benefits both you and the planet. From energy-efficient windows to passive solar design, the options for making your home eco-friendly are vast and varied. By incorporating these features, you can enjoy long-term cost savings, increase the value of your property, and contribute to a more sustainable future for all. Sustainable living is the way forward; with the right investments, your home can lead the way in environmental responsibility.”

I’ve earned the Green Designation.   Visit my website www.FindMauiProperty.com to search the Maui MLS and Find Helpful Resources.

Lower Mortgage Rates Boost Your Buying Power

Via Maui Now: “UHERO forecasts a lagging Maui recovery and slower overall Hawai’i growth”

Via Maui Now:

 

UHERO forecasts a lagging Maui recovery and slower overall Hawaiʻi growth

Lahaina town and Small Boat Harbor aerials (Aug. 19, 2024). PC: DLNR.

Maui’s economy will only gradually recover from its post-wildfire downturn while visitor industries in other counties across the state will continue to operate at high levels, according to the University of Hawaiʻi Economic Research Organization’s (UHERO) third quarter forecast for 2024.

The newly released forecast notes that Hawaiʻi’s trend growth is now slower than in past decades. That will continue to be the case because of limited population and labor force growth in coming years, according to UHERO.

The report notes that the aftermath of Maui’s wildfires continue to disrupt the local labor market. “Coupled with the Valley Isle’s ongoing housing crisis, this has driven some residents to leave,” the report states, noting that data on out-migration is extremely limited. “The county’s labor force has fallen by 5%, implying a loss of approximately 4,200 workers. When activity picks up, labor shortages will be a problem,” according to UHERO.

Housing affordability is a challenge across the islands, “but nowhere worse than on Maui,” the report states.

“Full Maui home rebuilding will take many years, and in the meantime rents have shot up,” UHERO notes. Economists note that uncertainty remains about the proposal to turn 7,000 short-term rental units into long-term housing. Meanwhile, condos across the state face a crisis in obtaining master policy insurance, prompting the state to intervene. Pending interest rate declines are expected to give the home resale market a lift.

“Overall construction will continue at a high level, supported by Maui rebuilding, other housing development, and the huge federal military projects,” the report notes.

As for tourism, “the post-wildfire recovery on Maui has essentially stalled for now,” according to the UHERO report, and Maui hotels are seeing falling occupancy rates as displaced residents are moved to other housing. After stabilizing in 2025, statewide real visitor spending will be essentially flat through the end of the decade, UHERO reports.

Other takeaways from the Sept. 20 UHERO forecast include the following:

  • Labor conditions in the rest of the state were largely unaffected in the fires’ aftermath, but there has been some statewide slowing of job growth since the middle of last year. This has eased an unusually tight labor market, although some businesses still face hiring difficulties. Job growth for many industries was weak this year, but will strengthen a bit in 2025.
  • Global economic conditions remain broadly favorable, with considerable variation across countries. The US has remained strong longer than expected, and disinflation progress and softer labor markets now set the stage for the first Federal Reserve interest rate cut. The Bank of Canada has already gone down that road, after the economy slowed significantly. Japan also slowed sharply in 2023, but forward-looking indicators are more positive. The Australian economy continues to languish, with less progress reducing inflation. China continues to underperform, reflecting a weak property market, stagnant consumer spending, and falling prices.
  • After tracking UHERO’s forecasts for several years, the Japanese visitor recovery has slowed, and their number remains at roughly half their pre-COVID level. The weak yen has weighed heavily on daily spending. The currency has regained some lost ground as the Bank of Japan has begun to raise interest rates. Further appreciation should help to boost this market, although it will not play as large a role in Hawaiʻi as it has in the past. Visitors from other countries will add to growth.
  • While the 2024 elections remain six weeks down the road, we can already evaluate the potential economic effects of major policy proposals. In Hawaiʻi, we also take a look at the effects of the recent substantial income tax cuts.
  • Inflation has proven more persistent in Hawaiʻi than in the continental US, because of a slower feedthrough of rents into the consumer price index. But pay raises have exceeded non-shelter inflation so that real purchasing power for many Hawaiʻi residents has grown. Total real personal income will rise 1.4% this year, with a slightly stronger gain in 2025.
  • Hawaiʻi has long seen dismal growth in per capita income, hampering our ability to attract in-migration of new families or to provide opportunities that would prevent out-migration of Hawaiʻi residents. As our society ages and young peoples’ preferences have shifted, the “natural” growth of the population from births being higher than deaths is ending. We will need net in-migration if we are to see significant future labor force growth sufficient to meet looming challenges.
  • These long-term shifts make efforts like the recent Pre–K program expansion and childcare tax credits key to bolstering labor force participation. Even with such support, we see unfavorable demographics holding down long-term growth. Annual additions to the job base will drop toward 0.5%, and real income growth will decelerate to 1–1.5% over the next five years. Real gross domestic product will pick up to 2.8% in 2025, as the drag from soft overall tourism numbers eases and Maui rebuilding kicks into higher gear. Longer term, real per capita income growth will slow towards a trend of about 1% by 2029.
  • Hawaiʻi stands to benefit as the Fed cuts interest rates over the next few years. But there is a risk that the Fed has waited too long to begin cuts, and that slowing already in the pipeline—and related financial fallout—might tip the US economy into a recession. That would be bad news for a Hawaiʻi economy that is heavily reliant on tourism revenue and that needs companies to be able to undertake investment and expansion plans.

The full report is available online at: https://uhero.hawaii.edu.

Visit my website at www.FindMauiProperty.com to search the Maui MLS and Find Useful Resources.

Checklist for Getting Your House Ready To Sell

 

Checklist for Getting Your House Ready To Sell

Some Highlights

  • Getting your house ready to sell? Here’s a few tips on what you may want to do to prepare.
  • Focus on making it inviting, showing it’s cared for, and boosting your curb appeal.
  • If you want specific advice to help your house stand out in your local market, connect with a real estate professional.​

I often help my clients with staging and creating outdoor spaces.

Visit my website www.FindMauiProperty.com to Search the Maui MLS and Find Useful Resources.

Via Hawaii Business Magazine: “From Wastewater to Green Belt …”

Via Hawaii Business Magazine:

“From Wastewater to Green Belt: An Ingenious Idea Takes Shape on Maui

A pilot project will use treated wastewater to create a green belt, protecting fire-prone Mā‘alaea and restoring coastal waters.
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Treated wastewater from the Maui town of Mā’alaea is currently injected into the ground. But local leaders have proposed a facility that would more highly treat the wastewater and then use it to irrigate a green belt of trees that would create a fire break and reduce runoff into the bay. | Photo: Getty Images

After last year’s deadly wildfires in Lahaina, Archie Kalepa returned to the smoldering ruins of his hometown and immediately set up an emergency center at his home. Since then, the legendary waterman has dedicated himself to the recovery of Lahaina and its people.

He has also been thinking about what’s needed for long-term recovery. In his view, it’s all about rethinking how we use our natural resources. “Twenty years ago, the most precious thing in Hawai‘i was land,” he says. “Today, the most precious thing on our islands is water.”

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Famed Waterman Archie Kalepa, who has helped lead recovery efforts in Lahaina, says he is also committed to finding ways to reuse wastewater that will benefit the land, ocean and community.

Kalepa’s family has lived in West Maui for nine generations and once presided over large taro patches that helped feed Lahaina when it was the capital of the Hawaiian kingdom. Water had been the essence of Lahaina, and there were so many canals and wetlands that it was once known as the “Venice of the Pacific.” But that landscape was transformed over time.

Kalepa sees the increasing threats of wildfire caused by droughts, climate change and poor land management, and he believes that two solutions are needed: one based on indigenous wisdom and the other on modern technology.

The first involves bringing back the wise use of water that his Hawaiian ancestors practiced, which will help create local farms and restore the life of the land.

The second option involves the innovative reuse of treated wastewater. Millions of gallons of highly treated effluent are currently pumped into the ground via injection wells on Maui, without beneficial purposes. But a local lawsuit based in Lahaina that went to the U.S. Supreme Court is forcing counties to find more beneficial uses, such as fire suppression.

Together, traditional water management and modern wastewater reuse could help restore Lahaina and protect all of Hawai‘i, Kalepa says. But to understand why, he says, it’s important to understand how water resources were radically changed over the last two centuries and how treated effluent could help transform all of Hawai‘i’s future.

 

Rise and Fall of “King Cane”

The Pioneer Mill Co. was created in Lahaina in 1860, and the sugar plantation became one of the most successful and longest running in Hawai‘i (finally closing in 1999). Sugarcane was profitable, and plantations sprung up all over the islands.

With the rise of what author John Vandercook called “King Cane,” a network of sugar barons would transform Hawai‘i’s economy, landscape and culture, and lead to the overthrow of the Hawaiian kingdom in 1893. During that time, plantation owners used thousands of immigrant workers to build a massive network of dikes and canals to divert streams across the state to their plantations to feed their water-hungry crops.

The redirected flow of water caused many perennial streams to dry up, leading to the decline of traditional taro farming and the livelihood of many Native Hawaiians like Kalepa’s ancestors.

The gradual decline of sugarcane production during the late 20th century motivated many plantation companies to shift their focus to real estate development. Though no longer producing crops, they still retained the water rights. Streams that once fed taro farms were now irrigating golf courses, hotels and housing. Much of what was undeveloped was left as dry, fallow fields.

 

Threat of Unmanaged Grassland

Invasive grasses took over the fallow fields and became fuel for an increasing number of wildfires. According to Clay Trauernicht, a plant science and wildfire expert at UH Mānoa, wildfires across the state burned an average of about 5,000 acres a year for most of the 20th century. But in the last 20 years, that figure shot up to 15,000-20,000 acres per year and is still rising.

Nani Barretto, co-executive director of the Hawai‘i Wildfire Management Organization, has seen the damage that wildfires have done. She says most housing developments in Hawai‘i were neither designed nor built with fire prevention in mind.

“We did not have fires like we do now back when most of our subdivisions were built,” Barretto says. Developers, architects and contractors in Hawai‘i weren’t focused on using fire-resistant building materials, landscaping or evacuation routes to reduce the risk of wildfires.

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She says we need to retrofit old developments and design new ones to counter the increasing threat of fires, which costs the state more money than hurricanes, flooding and tsunamis combined.

Hawai‘i must also better manage the fallow lands that fuel wildfires. “Until we rethink what we’re going to do with them,” Barretto warns, “the risk is going to return.”

The state’s largest private landowner, Kamehameha Schools, recently announced plans to expand agriculture and forestry operations on roughly 960 acres above Lahaina. KS also committed to creating new residential, commercial and recreational developments on about 190 acres, parts of which border neighborhoods destroyed by the fires.

“Our vision is to see Lahaina flourish again as a place of abundance,” said CEO Jack Wong in announcing the plans.

 

The Rebirth of a Stream

Before the advent of sugar cane plantations and large ranches, there were many perennial streams, native forests and wetlands that kept land in Hawai‘i fertile and moist. To illustrate the effects of modern development, Kalepa shares a story about his ancestral farmlands near Lahaina.

“We have some family land in Lahaina, and the stream was dry for 130 years during this Westernized time,” he says. It turned out that Kahoma Stream was managed by Kamehameha Schools, and a coalition of community members approached the trust about restoring the stream. Kalepa advocated for restoring the water rights because he wanted to resume growing taro on his family’s lo‘i kalo.

After six years of negotiations, the community won the rights to restore the stream and, after much hard work preparing the land, it began flowing once again from mauka to makai for the first time in more than a century.

“Veins of the earth that are fertile with water, allow our earth to heal,” Kalepa said at a celebration with the community and Kamehameha Schools in 2017.

“That stream was dry for 130 years, but watching the transformation in the last six years blew me away,” Kalepa says now. What once seemed dead is now full of new life. He saw native fish come back and witnessed the coral reefs blooming again offshore.

“When you see the change come back from what was almost extinct, it really changed my perception,” he says. “I began to pay really close attention to the healthiness of the streams and the reefs.”

Restoring stream flows and water rights to local farms could transform the landscape and culture of Hawai‘i, Kalepa says. Along with reducing the amount of natural fuels for wildfires, he says, we also need to reimagine the ways we reuse our wastewater resources.

 

Lahaina Injection Wells Case

While working with his community to restore Kahoma Stream, Kalepa also became involved with a local water quality lawsuit. Environmental groups had formed a coalition to stop Maui County from injecting treated sewage into deep injection wells at its Lahaina Wastewater Reclamation Facility.

The group formed the DIRE Coalition – standing for Don’t Inject, REdirect – to get the County to stop injecting treated sewage into the ground but instead to use the treated wastewater for more beneficial uses like irrigation or fire prevention.

After Maui County rejected their requests, Earthjustice filed a lawsuit on behalf of four nonprofits: Hawai‘i Wildlife Fund, Sierra Club-Maui Group, the Surfrider Foundation and the West Maui Preservation Association. (The writer worked for The Surfrider Foundation at the time.) The groups said the treated wastewater was polluting the near-shore ecosystem and seriously threatening water quality at Kahekili Beach.

Kalepa supported the cause and joined a separate complaint against Maui’s mayor to settle the case. “What’s killing our reef is these injection wells,” Kalepa says. “This is about our future … about us having healthy reefs, a healthy community, a healthy environment.” The county was pumping 3 million to 5 million gallons of treated waste into underground injection wells each day at the Lahaina facility. They tried to argue that the effluent wasn’t affecting the near-shore ecology; and even if it was, they weren’t directly responsible because the pipes weren’t connected to the ocean.

The lawsuit gained national attention and would eventually go to the U.S. Supreme Court.

Earthjustice lawyer David Henkin argued the case in November 2019 and said the county’s logic was absurd. “According to Maui County, a polluter can avoid the law by taking a pipeline that discharges waste directly into the ocean and cutting it 10 feet short of the shoreline,” Henkin said.

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On behalf of four environmental nonprofits, Earthjustice sued Maui County, alleging that its wastewater treatment system was polluting the near-shore ecosystem. Lawyer David Henkin argued the case before the U.S. Supreme Court, which ruled in favor of the environmental groups in 2020.

In spring 2020, the Supreme Court ruled in favor of Earthjustice and the environmental plaintiffs.

“Because the county forced us to go to the Supreme Court,” Henkin says, “we ended up getting a ruling that applies broadly across the country and makes it clear that polluters cannot avoid the Clean Water Act by using things like injection wells that then use groundwater as a sewer to transport pollution into the ocean.”

The Maui County Council has since committed to upgrading its wastewater infrastructure to a higher level of treatment and to reuse the treated wastewater for golf courses, agriculture and landscaping. The council also worked with the new Mayor Richard Bissen to pass Bill 52, which requires that all of the county’s wastewater be disinfected to meet Hawai‘i State R-1 reuse water standards by Jan. 1, 2039.

Earthjustice recently won a similar lawsuit against Hawai‘i County, saying their Kealakehe Wastewater Treatment Plant in Kona was polluting nearshore waters in Honokohau Harbor.

 

Thinking Outside the Box

The reuse of treated wastewater for fire prevention is a relatively new concept, but it’s gaining ground. A promising new pilot project is being developed in Mā‘alaea, the second most vulnerable area for wildfires on Maui after Lahaina, according to a 2019 report by the Hawaii Wildfire Management Organization.

The harbor community, bordered by fallow lands that once grew sugarcane, has been repeatedly threatened by wildfires over the last 20 years.

Mā‘alaea has ten condo buildings, a few small businesses, a marina and the Maui Ocean Center. For decades, these buildings have been pumping millions of gallons of partially treated sewage waste into eleven injection wells along the coast. During that time, the water quality of Mā‘alaea Bay has deteriorated rapidly, and the EPA has listed it as an impaired body of water – one of hundreds across Hawai‘i.

The once thriving reefs off Mā‘alaea have declined from 78% coral coverage a few decades ago to a low of 8% currently. To visualize this decline, visitors can check out the Maui Ocean Center, which has the largest living tropical reef aquarium in the Western Hemisphere, to see what healthy colorful reefs look like. Then, a quick snorkeling excursion in Mā‘alaea Bay will reveal the gray rubblescape that remains. Without remediation, the area will continue to decline.

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Healthy corals can be seen at the Maui Ocean Center in Mā’alaea, but most of the coral in the nearby Bay has died. | Photo: Hawaii Tourism Authority (HTA) / Tommy Lundberg, courtesy: Maui Ocean Center

Motivated by the Lahaina Injection Wells case, community leaders at the Mā‘alaea Village Association (MVA) proposed replacing the injection wells with a decentralized wastewater treatment facility. The new facility would then use the highly treated wastewater to irrigate a green belt of trees around the community. The green belt would also create a fire break, wind break and a way to reduce erosion and runoff into the bay.

Momentum and support for the project are growing under the leadership of MVA board members Peter Cannon, a longtime resident and businessman, and Tapani Vuori, the president and general manager of the Maui Ocean Center. Applying on behalf of the community, the MVA group has received state and federal funding to do engineering and site planning for the green belt design, which would be a buffer zone between the community and the fallow cane fields.

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Tapani Vuori, president of the Maui Ocean Center, is one of the leaders of a proposal to irrigate a green belt of trees using highly treated wastewater.

“This could be a model for the rest of the state when we look at the cesspool situation for decentralized solutions,” says Vuori. “It’s probably four or five times less expensive than centralized treatment facilities. We feel this is a much more cost-effective solution.”

As an example, the nearby subdivision of Maui Meadows has more than 700 cesspools that are discharging over 440,000 gallons of untreated waste into their groundwater each day. Instead of homeowners paying $30,000 to $50,000 each to convert their cesspools, the community could work with the Maui County Council to create a more affordable, efficient and environmentally friendly solution.

Currently, local advocates John Laney and Caleb Harper, who live in the area, are working to create a sewer improvement district that could be financed by monthly payments. They are exploring decentralized wastewater treatment options, as well as a green belt to protect their community from future fires.

“We’ve got to think outside the box,” Kalepa says about the rebuilding of Lahaina. Along with restoring streams and converting old sugarcane fields into fertile farmland, he is also committed to “finding better ways to utilize our wastewater resources.” Reusing treated effluent for irrigation of green belts could be a key component in preventing wildfires.

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The center can be seen among other buildings in the town of Mā’alaea. | Photo: Getty Images

Kalepa says Lahaina and the state need to come up with a new plan to guide us into the future. He believes that plan needs to be inclusive of all people but based on traditional Hawaiian values. “We live in a modern time, but we can still have these values that can keep our islands healthy and alive for the next 10 generations.””

*****

Visit my website www.FindMauiProperty.com to search the Maui MLS and Find Useful Resources.

 

Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List

Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List

Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List

Since the supply of homes for sale is growing and mortgage rates are coming down, you may be thinking it’s finally your moment to jump into the market. To make sure you’re ready, you need to get pre-approved for a mortgage.

That’s when a lender looks at your finances, including things like your W-2, tax returns, credit score, and bank statements, to figure out what they’re willing to loan you. After that process, you’ll get a pre-approval letter to show what you can borrow. Here are two reasons why this is essential in today’s market.

Pre-Approval Helps You Know Your Numbers

While home affordability is finally starting to show signs of improving, it’s still tight. So, it’s a good idea to talk to a lender about your loan options and how today’s changing mortgage rates will impact your monthly payment. The pre-approval process is the perfect time for that. In addition to determining the maximum amount you can borrow, pre-approval also helps you understand this piece of the puzzle. As Investopedia says:

“Consulting with a lender and obtaining a pre-approval letter allows you to discuss loan options and budgeting with the lender; this step can clarify your total house-hunting budget and the monthly mortgage payment you can afford.”

You should use this information to tailor your home search to what you’re actually comfortable with budget-wise. Since mortgage rates have inched down some lately, you may find you’re able to afford a bit more than you’d expect for your monthly payment, but you still want to avoid overextending. As CNET explains:

“In many cases, a lender may preapprove you for more than you need to spend on a home. And while it can be tempting to look at houses outside your budget, it won’t help you in the long run. Before you start touring homes, figure out how much you can realistically afford and stick to your budget.”

Pre-Approval Makes Your Offer More Appealing

And once you do find a home you want in your budget, pre-approval has another big perk. It not only makes your offer stronger, it also shows sellers you’ve already undergone a credit and financial check. When a seller sees you as a serious buyer, they may be more attracted to your offer because it seems more likely to go through. As Greg McBride, Chief Financial Analyst at Bankrate, says:

“Preapproval carries more weight because it means lenders have actually done more than a cursory review of your credit and your finances, but have instead reviewed your pay stubs, tax returns and bank statements. A preapproval means you’ve cleared the hurdles necessary to be approved for a mortgage up to a certain dollar amount.”

As mortgage rates trend down, more buyers are going to be ready to jump back into the market. And while demand is still limited right now, there’s the potential for competition to pick back up, especially in hot markets. So, why not stack the deck in your favor and make sure you’re putting yourself in the best position possible when you find a home you love?

Bottom Line

If you’re planning on buying a home, don’t forget to get pre-approved early in the process. It can help you get a more in-depth understanding of what you can borrow and shows sellers you mean business.

Visit my website at www.FindMauiProperty.com to search the Maui MLS and Find Useful Resources.

Via Hawaii Business Magazine: “Hawaii’s Condo Insurance Crisis Is Now Hurting Sales”

Via Hawaii Business Magazine:

“Hawai‘i’s Condo Insurance Crisis Is Now Hurting Sales

Sales fell 48% in Waikīkī and 38% in Makiki-Mō‘ili‘ili in June. Both neighborhoods have lots of underinsured, older condo buildings.
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Original photo courtesy: Mariya Oliynyk, Unsplash.com

Honolulu’s condominium market is starting to show the effects of skyrocketing insurance rates for homeowners associations: The number of condo sales in June was down nearly 25% from June 2023, even though more units were for sale than at any time in the last three years.

Disasters like hurricanes and wildfires in the U.S. and around the world – including the Maui fires a year ago – have driven up home insurance rates here and elsewhere. As a result, many Hawai‘i condominium associations have seen the prices of their master insurance policies increase 300% or more in one year, and some have seen an extraordinary 900% to 1,300% increase.

An estimated 400 condo associations on O‘ahu have elected to carry less than 100% replacement coverage on their master insurance policies, which means they won’t have enough money to rebuild if their properties are damaged or destroyed in a hurricane or other disaster. Some associations have secured insurance coverage on the pricey secondary market, but that means condo owners must deal with higher maintenance fees or assessments to pay for it, in addition to the premiums on their individual homeowners insurance known as HO6 policies.

Local banks, in most cases, won’t take the risk to lend on units in underinsured buildings. That makes it difficult, if not impossible, for buyers without access to large amounts of cash to buy condos in those buildings and puts sellers in a similar pickle. Some buyers have canceled sales after going into escrow because they weren’t able to secure their mortgages.

“My intuition is we’re going to definitely see this reflected in the market in the next six months,” says Fran Gendrano, president of the Honolulu Board of Realtors.

 

Makiki-Mō’ili’ili and Waikīkī Sales

The impact is already starting to show in the board’s monthly reports. The O‘ahu condo market, while battered by rising interest rates over the past two years, had shown some recovery in four of the first five months of 2024.

But then condo sales on O‘ahu dropped 24.5% in June, compared to the same month in 2023, and were down 25.7% from May. Larger drops occurred in neighborhoods with the largest concentrations of condo buildings on the island and many older buildings. In Waikīkī and Makiki-Mō‘ili‘ili, sales plunged 48% and 38%, respectively.

Islandwide in June, the decline in the number of condos that sold was largest among condos that sold for less than $700,000, according to Honolulu Board of Realtors statistics. That month, the number of units sold for $500,000 to $599,999 fell 37% compared with June 2023, while the number sold for $600,000 to $699,999 dropped 48%.

Even sales of units that sold for less than the median price of $530,000 fell. The number of units that sold for $300,000 to $399,999 dropped 31.6% in June, and the number that sold for $400,000 to $499,999 declined by 24.4%.

 

Taking Longer to Sell

At the same time, the number of condos on the market is rising, and those units are taking longer to sell. The active inventory of condos for sale in June totaled 1,729; that’s 49.2% more than in June 2023 and the most condos on the market on O‘ahu since September 2020.

The average number of days on the market – from listing to contract – rose to 29 days in the first six months of 2024, up from 22 days in the same period last year.

It took less time to sell single-family homes on O‘ahu. For those, the average number of days on the market was 20 days in the first six months of 2024, down from 25 days in the first six months of 2023.

Some local credit unions are still providing some first mortgages and home equity lines of credit, or HELOCs, for condos that don’t carry 100% replacement coverage. But that’s on a case-by-case basis and comes at a premium. Big banks are not.

“We do not extend loans on condo buildings that fail to meet the standard of 100% replacement cost coverage,” Alan Fentriss, senior VP and director of home loans at American Savings Bank, said in an emailed statement. “We’ve got many prequalified buyers looking to buy condos, but it’s unsafe for them to do so if the buildings aren’t adequately insured.”

Gendrano, who is also principal broker at KFG Properties Inc., says some mainland lenders still write mortgages here – but that may not be the case for much longer.

 

Deferred Maintenance Also an Issue

Chad Takesue, chief sales officer at Honolulu real estate firm Locations, says deferred maintenance on older buildings is compounding the problem. Buildings that have put off such projects as replacing aging pipes or drain lines are seeing their insurance premiums skyrocket as well.

“Some condos have done a good job of budgeting for that,” Takesue says. “Part of it is they may have budgeted but with inflationary costs, if they’re not reevaluating their budgets to the new cost structure, they’re short.”

Hawai‘i’s salt-air environment can play havoc with concrete spalling and cause pipes to rust before their estimated useful lifespans, which can accelerate the need for a project before an association has budgeted for it, he says.

“You see good condos implement annual inspections and plumbing inspections for each unit, (to see) if there are any leaky faucets,” he says. “Some condos have found ways to implement measures to minimize that.”

All of this is prompting some buyers to look at newer condo buildings that they might not have considered otherwise, Takesue says.

“One thing I am seeing is in areas where there are new projects, they’re fully insured,” he says, citing units in the newly built condo Ililani in Kaka‘ako. (Locations is the exclusive project broker for those units.) “We’re seeing some migration from resales to the new projects.”

Takesue advises sellers or their agents to order their condo documents before listing condos for sale, so they can inspect the insurance summaries and know up front about any problems for potential buyers seeking mortgages. Those documents are typically ordered for buyers after units are in escrow. While experienced agents already look for red flags ahead of listing, the insurance issue adds another layer to the due diligence, he says.

 

Seeking Government’s Help

Gendrano notes that the condo insurance problem is not unique to Hawai‘i. Condo communities in Florida, Maryland and California have also been hit with skyrocketing premiums.

She says the government needs to do something because affordability is being wiped out by the higher insurance premiums and limited access to mortgages. Differing bills that addressed the issue (House Bill 2686 and Senate Bill 3234) passed in their chambers this year, but a conference committee in the final days of the legislative session failed to find a compromise.

House Speaker Scott Saiki didn’t rule out a special session to reconsider the issue, but at this point there seems to be little momentum to call lawmakers back before January.

“We have to solve the problem. It’s not about just moving the property,” Gendrano says. “There’s a big looming issue. I don’t want the new buyer or the new owner to inherit this issue without anything in place, any sign that it is going to improve.”

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Early Forecasts for the 2025 Housing Market Infographic