Sales jumped 36.6 percent in December as Oahu home prices slipped to $550,000, according to data released yesterday from the Honolulu Board of Realtors.

The December median price was down 12.2 percent from $626,500 the same month a year ago, and down 6.7 percent from $590,000 in November.

The lower homes prices spurred 265 sales in December, 71 more than 194 the same time a year ago.

Condo sales rose to 349 in December, up 43.6 percent over the same month last year. The median price dropped to $300,000, just 1.6 percent down from $305,000 in December 2008.

“;Well-qualified buyers are finding reasonably priced properties, and the federal tax credits coupled with low interest rates have encouraged many of those who were on the fence to purchase a new home,”; said Brian Benton, newly elected board president.

The first-time homebuyers' tax credit, originally set to expire Nov. 30, was extended five more months. Eligible first-time homeowners (who have not owned a residence during the three years prior to purchase) now have until April 30 to enter into a binding contract and until June 30 to close.

Sales data shows that first-time homebuyers were really active last month, according to Chason Ishii, president of Coldwell Banker Pacific Properties.

Most of the homes sold in December were on the Leeward side and priced under $599,000, which is in high demand among first-time homebuyers.

Now is a great time to buy, said Ishii. Besides lower prices, record-low interest rates and the tax credit, appraisers are also holding values down. Conversely, now is also a good time to sell, he said, while buyers are interested.

“;There are a lot of first-time homebuyers out there,”; said Ishii. “;They're getting frustrated because of the lack of inventory. There isn't a lot, especially when you look at the price ranges, under $600,000, that first-time homebuyers would like to participate in.”;

December set record low inventory levels for 2009 for both condos and homes.

Only 1,100 single-family homes and 1,588 condos were listed in December, 45.9 percent and 39.7 percent lower, respectively, than in December 2008.

Based on seasonally adjusted data, Paul Brewbaker of TZ Economics says the Oahu housing market has bounced back to about the same level as August 2007, just before the start of the financial crisis.

This year, however, there will be an inevitable rise in interest rates, and the homebuyers' tax credit is set to expire, which could result in a continued downward shift in prices.

In addition, there are few new home projects in the pipeline to add to existing inventory.

“;We'll probably continue to stay on a relatively stable path,”; said Brewbaker, “;with sales roughly at the same levels and maybe a slight upward drift, but it won't be a robust market.”;

The year-to-date total dollar sales volume through December was $2.9 billion, down 19.3 percent from a year ago.

NEIGHBORHOOD WATCH

Oahu single-family home and condominium resales data for December by neighborhood with the percentage change from last year:

SINGLE-FAMILY HOMES

CONDOMINIUMS

Source: Honolulu Board of Realtors