Hawaii Big Island Style | August 2023 Newsletter

Aloha, August!

Maui | 3D Printed House | Song-writing | Currency Rate

Aloha August!

My heart is heavy after the recent devastating wildfires in Maui. These trying times have reminded us of the strength that emerges from unity and resilience.
Big Mahalo to all those who reach out to me to offer support. There are many trustworthy charitable groups but I'd like to highlight the Maui Strong Fund as a credible channel for contributions.
Discover the Maui Strong Fund: https://www.hawaiicommunityfoundation.org/strengthening/maui-strong-fund

Even in the darkest moments, there's always hope. Our collective efforts will pave the way for a brighter future for Lahaina. Let's continue to stand together and offer our unwavering support.

This year's Floating Lantern Ceremony held a special significance as it was dedicated to the souls we lost in the tragic incident on Maui. Taiko Drums, Hula, Hawaiian Chants, and Hawaiian Music created an atmosphere of comfort and solace. Witnessing so many individuals collectively embraced the moment and created a space for peace and love was truly heartwarming.

Three of my listings went into escrow within just two days. The success can be attributed to meticulous preparation. This involves effective staging, repairs, and thorough cleaning, resulted in an impressive 700% return on investment for preparation costs!
Strategic spending in these areas maximizes the initial impression and accelerates the sale process.

This month, I had the rare privilege of playing alongside Japanese professional singer-songwriter Takeshi Furusawa. It was both humbling and exhilarating to play  with such a talent. This experience brought back memories of my own songwriting days. My heartfelt thanks to Takeshi for the collaboration and his incredible vocal skills.  
In case you wonder what kind of music I wrote and sing, here it is. 

Jason Wang from Compass NYC was in Hawaii!
During my visit to New York last year, he graciously showed me around SOHO and Brooklyn. In return, I had the pleasure of inviting him to a round of golf. I truly feel fortunate to have friends and partners not only across the United States, but also from various parts of the world.
See Jason in Action!

I'm excited to share the August Hawaii Recap Video with you. You'll catch a glimpse of a remarkable $29 million property in Hualalai, as well as the stunning best-view home in Kona, thoughtfully priced at $4.6 million.

Enjoy!

KAI

Kai's Market Update

AUG 2023

National Trend
Existing-home sales fell 2.2% in July to a seasonally adjusted annual rate of 4.07 million. Sales receded 16.6% from one year ago.
The median existing-home sales price rose 1.9% from one year ago to $406,700. It was the fourth time the monthly median sales price eclipsed $400,000, joining June 2023 ($410,000), June 2022 ($413,800) and May 2022 ($408,600).
The inventory of unsold existing homes increased 3.7% from the previous month to 1.11 million at the end of July, or the equivalent of 3.3 months’ supply at the current monthly sales pace.
The30-year fixed-rate mortgage averaged 7.09% as of August 17. That’s up from 6.96% the prior week and 5.13% one year ago.

A LINK to Data Summary by NAR

Hawaii State Trend

Homes | Condo Median Price

Oahu : $1,050,000 | $515,000
Maui:   $1,150,000 | $840.000
Kauai:  $1,100,000 | $697,000
Kona:   $1,169,500 | $555,500

Kona Market

Kona's Single-Family Home Market Update 

The median price this month increased by 6.8% in comparison to the previous year. However, sales have experienced a significant decline of over 30%. The scarcity of available properties has played a pivotal role in sustaining these record high prices.

In the pre-pandemic era, there used to be about 200 homes on the market at any given time. A stark contrast to the mere 68 homes available today.  There were over 400 homes on the market after the 2008 crash. 

Supply-wise, we are witnessing a 27% reduction of inventory compared to last year. This has led to a supply of only 2.3 months' worth of homes. While it is still a Seller's Market,  we are starting to see properties not selling. Buyers know the market and the pricing is crucial.

On the demand front, there is a notable 16% decrease in Pending Sales (homes in escrow) compared to the same period last year. 

Sellers and Buyers alike, good preparation is the key to success in this market.

AUGUST TREND

Despite the ongoing tightness, it's important to note that the Kona Real Estate market traditionally experiences a slowdown as we move into September.

Kona Condo

Kona Condo Market Update

The median price of condos has risen by 3.3% in comparison to the previous year. However, it's worth noting that the number of sales has encountered a decline of over 28%. These contrasting trends are worth keeping a close eye on.

The tale of limited inventory continues, exerting a profound impact on the market. This scarcity has notably contributed to sustaining prices at a record high just like in single-family homes. 

Despite the circumstances, it's intriguing to observe that the number of available condos on the market has surged by 64% compared to the same time last year. However, we're still far from the approximately 200 condos that were available pre-pandemic. Currently, a mere 54 condos are for sale on the market. This has led to a supply of 1.7 months' worth, highlighting the present conditions.

On the demand front, there's a noticeable 35% decrease in Pending Sales compared to last year.

AUGUST TREND

The inventory has seen a delicate improvement, mirroring a similar uptick in demand. 

Big Island Resorts

International Real Estate
-Currency Rate

Luxury Home prices in Dubai surged 48.8% in the past year, fueled by an influx of Russian and Asian buyers, and those simply seeking a tax haven.  Rents are also up over 22%. Dubai luxury is relatively affordable  globally: $1 million buys you a home 6X the size of a home in Monaco and triple the size of one in Singapore.  Monaco and Tokyo fared well too with a 26,2% surge while Miami featured on the TOP 10 list with home prices surging 7.5%! Foreign buyers have fueled most of the big gains which can trigger local push-back. (CNBC/Bloomberg)

Here are the latest Top 20 Home Price Among Global Cities and US Metros. 

-Currency Rate-
A currency exchange rate plays a significant role for foreign investors. 
Throughout history, Japanese buyers/investors have been the largest group of foreign investors in the State of Hawaii by a considerable margin. However, the eagerly awaited return of Japanese buyers and tourists has yet to materialize, largely due to the unfavorable currency exchange rate. The Japanese Yen is currently at its weakest in 30 years. While this situation poses a substantial disadvantage for potential buyers, it presents a lucrative opportunity for sellers.
The value of properties, which have already experienced a 50% increase during the Pandemic, is further inflated by an additional 35% due to the currency exchange rate when converted to YEN. This market environment may prove to be an advantageous period for sellers seeking to make an exit. Or for someone who seeks to purchase real estate in Tokyo. 
Although it is impossible to time the market and currency exchange rate, it looks like we are in a "perfect storm," as we can see from below.

Real Estate in the News

The World’s Largest 3D-Printed Neighborhood Opens in Texas

The news about this innovative approach was shared by Lauren LeBlanc of REALM, also Compass Austin.   It is just a mind-blowing technology that can creat a huge shift. 

A collaboration between Lennar Corp., the US’s second-biggest home builder, and 3D-printing startup Icon, Genesis represents perhaps the most significant innovation in residential construction in decades. If it can scale, 3D-printed construction promises to deliver energy-efficient homes that can be built faster and more affordably, in novel designs and with minimal waste. The concrete structures are also more resilient to increasingly intense climate-driven hurricanes, wildfires and heat waves.
With the first model home now completed, the group has begun selling its tech-forward houses with the first residents set to move in this September.

Bloomberg's article has amazing photos.
The photos are amazing. 
Please contact  Lauren LeBlanc for any real estate needs in Austin, Texas.

READ ARTICLE

Kai's Topic
Hayao Miyazaki

The Last Movie by Legendary Japanese Filmmaker

Denis Makarenko/Shutterstock

Hayao Miyazaki's final masterpiece, "The Boy and the Heron," has been confirmed to have its U.S. premiere at the highly anticipated New York Film Festival (NYFF). Miyazaki, a legendary Japanese filmmaker and co-founder of Studio Ghibli, showcases his unparalleled storytelling prowess one last time.

Recently, entertainment and art have transcended mere pastimes to become economic powerhouses. Taylor Swift's 2023 concert earnings are supposed to surpass the GDP of at least 35 countries. Similarly, the  $10 billion valuation of the K-Pop phenomenon on the Korean economy further emphasizes the undeniable economic impact of the art and entertainment business.

The anime and manga(comic),  once stereotyped as a domain exclusively for kids and Otaku (enthusiasts),  are now undeniably one of Japan's economic resources, its market value estimated at a remarkable $21.3 billion in 2020. Streaming giants like Netflix, HBO, Disney, AMC, and Amazon are investing heavily in the ANIME genre, which is very different from cartoons.

It was Miyazaki's extraordinary creations such as "Nausicaä of the Valley of the Wind," "Spirited Away," "Princess Mononoke," "Howl's Moving Castle," "Castle in the Sky," and the iconic "My Neighbor Totoro" that propelled Japanese animation onto the global stage, transforming it into a genre that captivates adults as much as it does children. 

His 2001 feature, Spirited Away, won an Academy Award for Animated Feature. In 2014, he was chosen to receive an Honorary Award at the Academy’s Governors Awards.

Miyazaki's films continue to make waves at the box office. Despite minimal pre-release promotional materials, "The Boy and the Heron" enjoyed a triumphant theatrical debut in Japan just last month, boasting stellar box office results.
The upcoming film promises to be an awe-inspiring conclusion to his remarkable career, with its winter release on the horizon in the US.

Hayao Miyazaki is a name to remember. And I strongly recommend seeing his movies if you have not already, as it will change your view of "Anime."

Local Happenings

thursday Aug 31 -
monday Sept 4, 2023

50th Queen Lili‘uokalani
Canoe Race

Named in honor of the last reigning monarch of Hawaii who’s birthday is in September, the 50th Queen Lili‘uokalani Long Distance Canoe Race welcomes paddlers to Kona from around the world to its starting line for five days of exciting canoe racing.

See more details HERE

SEPT 15 - SEPT 17, 2023

Kona Pride Festival

To be held at Courtyard by Marriott King Kamehameha's Kona Beach Hotel, Kailua-Kona. There will be events related to Kona Pride Festival happening all weekend.. 

See more details HERE

Lifestyle Tips and Tricks

Hawaii Style: Bananas at construction site

The Best Paint Colors for Every Room 

Paint colors matter. They convey a mood and a sense of style and can define a space.

Courtesy of US News

9 Contemporary Interior Design Tips You Haven't Heard Before

Current contemporary spaces have an easy, warm feel to them. Far from formulaic, they can be eclectic or even fun. 

Courtesy of Forbes

Kai's Featured Listings

Bayview Estates

78-7005 Mololani Street

4 BD   4 BA   2595 SF   $3,100,000
Brand New Home in Premier Gate Community

Sophisticated opulence harmonizes with timeless design in this rarely available, brand-new Bayview Estates custom home, creating something breathtakingly fresh, modern, and perfect.  This sumptuous sanctuary is one of the last few lots in this beautiful gated neighborhood, boasting relaxing ocean views and ideal luxury outdoor resort living. 
Check Out the Property Website

Sunset View Terrace

77-6472 Kilohana Street

3 BD   3 BA   2276 SF   $1,590,000
Completely remodeled beauty!

Mauna Lani Resort

68-1304 Akea Place

5 BD   6 BA   4606 SF   $5,245,000
Brand new homes to be built. STVR allowed. 

Alii Heights

77-207 La'ela'e Street

3 BD   2 BA   1798 SF   $1,350,000
Remodeled. In Escrow!

Malulani Gardens

75-231 Malulani Road

3 BD   2 BA   1569 SF   $980,000
Kama'aina home with a view. In Escrow!

See What's Available 

Available Kona Homes $1M - $2.5M

Available Resort Luxury Properties

Mahalo for reading and subscribing! Ready to achieve your next real estate goal?

Reach out to chat!

Daisuke 'Kai' Ioh

RB-19352
Realtor Broker
M: 808.936.6148

Compass Hawaii, Kona
kai.ioh@compass.com
Kai's Bio

Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.