Homebuyers might be slow in their return to Kauai and the Big Island, but market watchers welcome the cautious activity.

In March, 130 single-family homes were sold on the Big Island, a 39.8 percent increase from 93 sold in March 2009.

The median price for homes dropped 4.7 percent, to $305,000 last month from $320,000 in March last year.

On Kauai, 24 homes were sold last month, just one more than the same time period last year. The median price increased by 3.3 percent to $495,000, up from last year's median price of $479,000.

“;We had a great first quarter, and I anticipate the turnover will continue and more and more people will be deciding that this is the time to step in,”; said Putman “;Putty”; Clark, president and chief executive officer of Clark Realty Corp.

Clark said it's natural to see a drop in price coincide with an increase in sales. He said he doesn't foresee home or condo prices dropping much more than they have.

“;There's still a lot of people out there waiting,”; he said. “;But if they do, they may be left in the dust.”;

On Kauai much of the market is being driven by off-island investors, said Phil Fudge, principal broker for Kauai Landmark Realty.

“;When locals start buying, that's what would be stimulating the economy,”; Fudge said. “;We are seeing renewed interest. We've seen some really active people looking and asking questions. But getting them to pull the trigger is not as easy as we would hope.”;

He added that foreclosures and short sales are also driving Kauai's market. A short sale occurs when the proceeds fall short of the balance owed on the home's loan.

“;If someone has to sell, they have to sell in a short-sale price,”; he said.

Condominium sales more than doubled on both islands. On the Big Island there were 49 units sold, compared with 24 in March 2009.

The median price dropped to $286,500 from $307,250 last year.

On Kauai there were 30 condo units sold, compared with 11 last year. The median price increased to $315,000 from $220,000.