Posted at 11:54 a.m., Tuesday, December 4, 2001

Low mortgage rates drive up home sales

By David Butts
Advertiser Staff Writer

Sales of existing single family homes in O'ahu rose nearly 5 percent in November from a year earlier, while condominium resales fell 12.5 percent, as attractively low mortgage rates were balance by consumer's concerns about the economy.

"The fact that there was an increase in single family home sales, with a small decline in condominium sales, demonstrates that buying demand in our housing market continues and is enhanced by the favorable financing rates," said Peter Freeman, president of the Honolulu Board of Realtors, which released the statistics.

The real estate industry has been one of the bright spots in the O'ahu economy following the Sept. 11 attacks, which caused a dramatic drop in tourism.

While the year-on-year sales numbers showed growth, the real estate market in November was down from last month.

The report said 267 single-family homes sold in O'ahu in November, up from 255 in November 2000, but down from 306 homes sold in October of this year. The median price paid for a home, $310,000, was also up from a year ago, when the price was $295,000, but down from October's median of $325,000.

"We still believe that the events of Sept. 11 had minimal impact on the O'ahu housing market," Freeman said in a statement. "Sales reported for November include many properties that had signed sales agreements during September. Most contracts assume a two-month escrow time."

Condominium sales totaled 302 in November, down from the 345 units which sold in November last year. Meanwhile the median condominium price jumped 11.9 percent to $136,500.

Single-family home sales for the year through November are 8.1 percent ahead of last year, and condominium sales for the year are 8.9 percent ahead.