Home sales surge
on Oahu, though
prices are lower

August's resale figures
for houses were the
highest in 10 years

By Rob Perez
Star-Bulletin

Sales of existing houses on Oahu surged last month to the highest August level in more than a decade as the overall resale market continued its string of consecutive monthly increases, now numbering 26, according to figures released today.

But pricing continued to be a weak spot for sellers.

Median house prices declined 9.1 percent, to $300,000, from August 1998, and condominium prices dropped 7.1 percent, to $125,000, the Honolulu Board of Realtors' figures show. Median means half the sales were above and half below that price.

The number of house resales last month hit 270, up 24.4 percent from the same period last year and the highest August level since 1988, according to the board. Condo resales jumped 27.2 percent to 295 last month.

The steady increase in sales and the shrinking time in which homes stay on the market is generating optimism in real estate circles, especially given signs the fervent sales pace will continue.

"The heightened market is showing no signs of letting up," said Harvey Shapiro, research chief for the Honolulu board. Shapiro said the number of sales contracts that went into escrow in August were at record levels. Those deals are expected to close in the next few months.

Even West Oahu, one of the areas hardest hit by the real estate slowdown of the past several years, is showing signs of a modest rebound.

Cori Meyers, president and principal broker of Kapolei Realty, said sales activity within her agency has picked up since the end of last year.

"We're already getting situations where we have more than one offer for properties," she said. "We haven't seen that for forever."

Meyers said prices haven't rebounded yet, but at least they seemed to have stopped falling.

Although the August median house price was down sharply from a year earlier, it was still 1.7 percent higher than this past July's median of $295,000. Last month's condo median, however, was 7.7 percent lower than July's $135,500 median.

On a year-to-date basis, Oahu house sales have totaled 1,861, 17.8 percent higher than the same period last year. Condo sales have jumped 29.5 percent to 2,106.

The total dollar volume has surpassed $1 billion and is 19.8 percent higher than the same period last year.

The board does not track new home sales on Oahu.