O'ahu new-home sales down, prices up

By Andrew Gomes
Advertiser Staff Writer

For the first time since Sept. 11, monthly sales of new homes on O'ahu slowed in February, but prices were higher than a year ago, according to the latest sales data from developers.

Homebuilders signed sales contracts for 123 new homes during the month, a 15 percent decline compared to February 2001, according to data compiled for The Prudential Locations by market researcher Ricky Cassiday.

The number of completed sales fell 2 percent, to 90, for the same period. At $335,747, the average price was up $70,838, or 27 percent, as developers built — and sold — more expensive homes.

The dip was anticipated, but didn't take place until four months after the economic contraction sparked in Hawai'i by the terrorist attacks on the East Coast.

Still, Cassiday said preliminary sales data for March looks like the growth will return.

"It's a blip," he said of the February data. "I think it's a lull."

Cassiday said some developers have been running short of inventory, and losing some sales to the resale market in cases where buyers can't or don't want to wait to move.

Schuler Homes' Stars-Edge project in Makakilo recorded the most sales, 10, followed by nine at Brookfield Homes' Garden Villas at Ko Olina.

The Brookfield homes were the priciest among the top sellers, at an average price of $387,993.

For the first two months of the year, the number of sales contracts was flat. The number of completed sales was up by 57 homes, or 36 percent, primarily because of a number of sales that were expected to close in December then delayed and completed in January.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.