Housing market still looks healthy

• O'ahu home resales for March

By Dan Nakaso
Advertiser Staff Writer

Housing resales on O'ahu were essentially flat last month compared to the same month a year ago, but analysts said yesterday that the volume still indicates a healthy real estate market.

Single-family home resales were exactly the same — 305 — for both last month and March 2001. Condominium resales dipped slightly from 385 to 382.

"We're running out of inventory," said Mike Sklarz, chief valuation officer for Fidelity National Information Solutions. "The real issue is that everybody's happy because the market is running at very high levels."

The year-to-year trend on O'ahu mirrors nationwide sales that consistently have been running at about 5 million for each of the last three years, Sklarz said.

Among the factors that have been fueling the increases are interest rates for mortgages that have been the lowest in decades.

At the same time, prices are increasing in East Honolulu and Windward O'ahu.

Sellers "are seeing prices that they're likely satisfied with," Sklarz said. "It's just a matter of time before the Leeward and Central O'ahu kick in with higher prices."

The median sales price for single-family homes jumped from $280,000 to $299,000 from March to March. Condominium sales rose from $129,000 to $137,300.

"The strong March sales continue to reflect the favorable mortgage rates that are available," said Peter Freeman, president and chief executive of the Honolulu Board of Realtors. "Additionally, economic stability and the continued prospects of growth are motivating both buyers and sellers."

For February, the board reported that 242 single-family homes and 329 condominiums were sold.

Total sales for January, February and March were $480.6 million, representing a 10.8 percent increase over the value of existing properties sold during the same period last year.

The increased demand for O'ahu homes and condos, however, contrasts with other sluggish real estate markets, such as commercial office or industrial, that have seen vacancy rates rise.

CORRECTION: An earlier version of this story included the wrong charts for March home resales for O'ahu.