Oahu home prices show a mixed trend
Home prices lower but still on rise
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Oahu's median single-family home price for April came in 3.9 percent below the same month last year, according to data released yesterday by the Honolulu Board of Realtors.
But the $639,000 median price is also the third consecutive monthly increase and is the highest it has been since October, the data indicates.
The median price for an Oahu condominium was $327,000 last month, up 0.6 percent from April 2007.
Prices have generally held up even as the number of sales transactions plummeted to 256 -- 25.1 percent below the same month last year --and condominium sales slid 27.1 percent to 384.
Of note is that mainland prices have taken a significant dive, particularly in California, while Oahu has been holding steady, said Harvey Shapiro, Honolulu Board of Realtors research economist.
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Oahu's median single-family home prices were 3.9 percent lower in April than the same month a year ago, though real estate experts say data show prices are remaining stable over the long term.
Last month's single-family median of $639,000, compared with a near-record $665,000 in April 2007, actually represents the third consecutive monthly increase and is the highest its been since October, according to data from the Honolulu Board of Realtors.
"Median prices are holding pretty firm in the current Oahu housing market," said Dana Chandler, Honolulu Board of Realtors president. "This contrasts with the significant losses of home values in mainland cities tied mostly to the continuing credit crunch."
April's median home price is up 1.8 percent from $628,000 in March. The median price for a condominium was $327,000 last month, down 0.7 percent from $329,300 in the preceding month but up 0.6 percent from $325,000 a year earlier.
Home prices have not been hurt even as the number of April sales transactions plummeted 25.1 percent year-over-year to 256 and condominium sales that spiraled 27.1 percent to 384, said Scott Higashi, executive vice president of sales at Prudential Locations LLC.
"More importantly, we don't see huge decreases in prices," Higashi said. "A lot of buyers tend to be waiting on the sidelines for some big price drop, but it's more likely interest rates will creep up on them."
Of note is that mainland prices have taken a significant dive, particularly in California, while Oahu has been holding steady, said Harvey Shapiro, Honolulu Board of Realtors research economist.
"April's data shows that there is enough demand, albeit lower than last year, to maintain our residential price levels," he said.
The median price paid for a single-family home in the first four months of the year was $625,000, a 0.8 percent drop compared with the 2007 period, while the median condo price rose 2.2 percent to $329,000.
The island's single-family home sales totaled 929 for the first four months this year, a 23 percent decrease over the same period last year. Total year-to-date condominium sales were 1,421, down 24.7 percent from last year.
Total dollar sales volume generated in the housing market for the first four months of the year was $1.3 billion, a decrease of 21.2 percent, or $352 million, compared with the $1.6 billion produced a year ago.
Oahu's affluent neighborhoods, primarily Waialae-Kahala and Kailua, have seen a more dramatic slowdown related to mainland investment speculators as well as vacation and second-home buyers, said Chason Ishii, president of Coldwell Banker Pacific Properties.
"The ratio of buyers from the mainland is so much greater, and with the instability of the stock market and with the California economy not doing extremely well, we're seeking that effect trickle down to Hawaii's economy," Ishii said. "Those that are looking for properties as primary residences still see high demand and activity in that area."
