June home sales plunge

By Rick Daysog
Star-Bulletin

The median price for a single-family home on Oahu dropped 4.9 percent in June, according to the Honolulu Board of Realtors.

The board said that the median price for a single-family home last month was $311,300, down from June 1996's $327,500. The median price for a single-family condominium fell 9.1 percent to $165,000 in June from the year-earlier month's $181,500.

Volume also was off as the number of condos sold tumbled 26 percent to 151 last month from June 1996's 204. The number of single-family home sales declined by 3.6 percent to 160 from 166 last June.

The sluggish results are a direct reflection of Hawaii's weak economy, in its sixth year of decline.

"We can see that the current downturn is the longest we've experienced and is nothing like we've seen in the past," said Scott Bradley, president of the board.

"Strength in the housing market is tied closely to local economic indicators, particularly job growth and income. While job count statistics are finally turning positive, income has stagnated for more than six years."

For the first six months this year, sales of single-family homes were down slightly at 827, compared with 834 last year, the board said. Sales of condos have fallen 9.5 percent during the first half to 937 from last year's 1,035.

The median price for a single-family home was $305,000 in the first half, down about 9 percent from year-earlier's $335,000. The median price for condos for the first half was $155,000, a 13.9 percent decrease from $180,000.

Median price means that half the homes sold above the given price and half sold below. The board's statistics reflect resales of existing homes and do not include sales of new homes.

The latest figures may mask some positive signs in the local housing market, the board said.

Bradley noted that the $165,000 median price for condos in June was the highest this year. He also said that the June 1997 single-family home prices of $311,300 was up from May's median price of $310,000 and April's $279,000.

"While the number of sales may be low, especially for condominiums, the June sales statistics indicate that prices may be stabilizing," Bradley said.

"As our economy begins to show signs of expansion, the housing market will bounce back."