Home, condo resales rise

By David Butts
Advertiser Staff Writer

O'ahu home and condominium resales rose nearly 13 percent in October from a year earlier, marking a quick rebound from a drop last month caused in part by fallout from the terrorist attacks of Sept. 11.

The Honolulu Board of Realtors said 306 existing single-family homes and 382 condominiums were sold in October, up 12.5 percent and 12.7 percent, respectively, from the same month a year ago. In September, single-family home sales were down 11.8 percent on the year and condominium sales were off 3.5 percent.

"Home sales are back on track," said Peter Freeman, the board's president and chief executive officer, in a statement. "In October, the number of properties that moved from active listings to a pending sales status does not appear to be affected by the 911 events."

Home sales are one of the few bright spots in the state's economy. Tourist arrivals are down about 20 percent since Sept. 11 and layoffs are rippling through many businesses. Several economists have said the state is already in recession.

But home buyers have been encouraged by low mortgage rates. The average 30-year mortgage in Hawai'i cost a borrower 6.30 percent last week.

"Many significant factors impact this excellent market," Freeman said, "not the least of which are incredibly favorable interest rates."

Interest rates may be headed even lower. Analysts expect Federal Reserve policy makers to reduce the benchmark U.S. interest-rate to 2 percent tomorrow, lowest since the Kennedy administration.

The average home price rose in October. Single-family homes sold for a median price of $325,000 in October, up 5.5 percent from $308,000 in September.

The only declining number was for condominium prices. The median condominium price was $125,000 last month, down 6.7 percent from $134,000 the month before.