Housing prices
best in a decadeMedian single-family home
prices go to $362,500 in April,
up 14.4% over last year
Single-family home prices on Oahu are reaching levels not seen consistently in about a decade.
The median price for a single-family home was $362,500 last month, up 14.4 percent over April 2002's median of $317,000, according to data released yesterday by the Honolulu Board of Realtors.
The last time single-family prices were consistently in this price range was in 1993-94, according to HBR.
The highest median price for a single-family home was in August 1990, when it climbed to $392,000.
Yesterday's overall report belied concerns that the hot housing market might suffer fallout from the war in Iraq and other economic pressures.
Sale prices also continued their upward trend in condominiums in April.The median price for an Oahu unit reached $165,000, up 13.8 percent from the same month last year, when the median price for a condominium stood at $145,000.
In October 1990, median condominium prices peaked at $208,000.
Sales volume was off slightly for single-family homes last month, but this was offset by a significant increase in condominium sales.
A total of 320 single family homes sold last month, down five sales from the same period last year.
The 552 condominiums that changed hands marked an 18.5 percent increase from a year earlier.
Leeward real estate specialist, John Riggins of John Riggins Realty attributes the steady climb in Oahu home prices to continuing pent up demand, bargain interest rates and ever-shrinking inventory.
"The biggest problem is not enough houses to buy and when developers can hold lotteries, it's a strong market," he said.For example the inventory of single family homes for re-sale in March this year was down to 4.8 months of supply for single family homes and 3.9 months for condominiums, Riggins said.
"When you compare this with our history, we are way below. During periods in 1988 and 1989 we got down to 6.1 months for single family. In 1989 for condominiums at one point the lowest it got was 4.4 months. So when we have really low inventory and when there are so few for sale, it's the law of supply and demand."
Riggins notes that competition to obtain home listings among Realtors is heating up.
"We are seeing incentives to list homes, some people offering rebates and lower brokerage fees. One of my competitors is even offering trips to Las Vegas," he said.
Total dollar sales volume for 2003 has now reached $908.5 million, an increase of 32.7 percent from the $684.5 million reached during the same period last year.
Total sales for the year through April reached 1,194 single-family homes and 2,025 condominiums, compared to 1,126 and 1,502, respectively, for the same period last year.