Oahu's real estate market slowed last month, with the median sales price for a single-family home dropping to its lowest point in 31/2 years. The median condo price fell to its lowest point in more than 21/2 years.

The island's housing market is feeling the crunch of an economic crisis that has affected financial markets worldwide, with homes dropping below $600,000 for the second time this year, the Honolulu Board of Realtors said yesterday. The median condo price fell below $300,000 for the first time since April 2006.

“;Oahu's housing market is beginning to feel the effects of the changing economic market, as demonstrated by the decline in both residential sales volume and the median prices paid in September,”; Dana Chandler, president of the Board of Realtors, said in a statement.

Home prices gained traction in August after dropping for two straight months, jumping 2.4 percent to $635,000 from $620,000 in July. Prices slumped again in September, with the median sales price for a single-family home dipping to $590,000, a 7.1 percent drop from the prior month and a 9.2 percent decline from $650,000 last year.

September's median price was the lowest since $545,000 in April 2005 and the first time Oahu's median home price has dipped below the $600,000 mark since February, when the price for a single-family home dropped to $599,000.

The number of homes sold declined 15.7 percent to 215 from 255 last year.

The median sales price for a condo fell 11.6 percent to $296,000 from $335,000 a year ago, the lowest price since $295,000 in January 2006. It was the first time condo prices have dipped below the $300,000 mark since $296,500 in April 2006.

The number of condos sold dropped 26.3 percent to 305 from 414 last year.

“;The prices dropped this month and there are two contributing factors,”; Harvey Shapiro, a research economist at the Honolulu Board of Realtors, said in an interview. “;One is just all the media reports of the financial crisis, which is starting to hit Hawaii now. The other factor is mix of homes. If more homes sell on the west side of the island, then the median goes down even if no values have changed. If more homes sold on the east side, then the median price goes up.”;

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Shapiro said, “;We have been very lucky up to now when our prices have been stable.”;

But, he added, “;it looks like Honolulu isn't going to be safe.”;

Dollar sales volume for the first eight months of the year was $2.96 billion, 25.1 percent lower than $3.95 billion a year ago.

In September the inventory of single-family homes declined by 50 to 2,069 from the prior month, while there were 94 fewer condos at 2,649. Inventory totaled 1,936 for single-family homes and 2,426 for condos a year ago.

“;It's going to be almost impossible to predict what is going on in the housing market because of what is going on in the national level in financing,”; Shapiro said. “;It's harder to qualify for a loan. Banks are requiring higher down payments, and you have to have a much better FICO score than in the past to even secure a loan. All of that has reduced demand, and that, of course, would lower prices.”;

On the neighborhood level, Aina Haina-Kuliouou saw an increase in the median home price from last year, going to $3.15 million from $1.36 million, while the number of sales dropped to five from 12. The North Shore's median home price jumped to $1.05 million from $637,500, while sales rose to six from four.

The largest home price declines came on the Windward Coast, where the median sales price dropped to $444,000 from $786,000, while sales rose to three from two; and in Waialae-Kahala, where prices dropped to $1.2 million from $1.8 million a year ago, while sales dropped to seven from 13.

For condos the largest price gains were in Kailua-Waimanalo, which rose to $497,000 from $415,000 as the number sold dropped to six from 10 a year ago. In the downtown-Nuuanu area, the median price rose to $350,000 from $320,000 while sales rose to 29 from 26.

The largest condo price drops came on the North Shore, which fell to $285,000 from $415,000 while sales declined to one from five. In Makakilo the median condo price dropped to $247,200 from $344,000 while sales dropped to five from seven a year ago.