Home sales set record
By Andrew Gomes
Advertiser Staff Writer
Purchasers of existing homes on O'ahu last month broke another all-time record for the number of completed single-family home resales, shattering the high mark set in June.
The Honolulu Board of Realtors yesterday reported 454 existing single-family homes were sold in July, a 24 percent increase from 366 in July 2002, and only the second time there were more than 400 single-family home transactions. In June there were 410.
Condominium resales also were strong, with 625 transactions. That was an 18.4 percent increase over the 528 transactions in July 2002, and was the largest volume since May 1990 when there were 769 resales, the board said.
Prices were up last month, reaching a median $390,000 for single-family homes, compared with $320,000 in July 2002. The median condo price was $175,000, up from $157,000 last year. The median is a point where half of sales are higher and half are lower.
The completed purchases, which typically trail sales contracts by two to four months, coincide with interest rates that were reaching new lows earlier this year, dropping from near 6 percent in March to near 5 percent in May for a 30-year mortgage.
Looking ahead, the Honolulu Board of Realtors expects sales contracts signed in the last few months will continue translating to higher closings in the coming months because interest rates have only recently begun to rise, reaching an average of 6.14 percent for the week ended July 31, according to Freddie Mac.
"At least in the short-term, we are confident that sales will continue to rise, although the sizeable increase in mortgage rates this month could dampen future demand," said board research economist Harvey Shapiro.
Shapiro said there were 1,017 condo purchase contracts signed in July, the highest number of pending condo transactions the board has seen since it began tracking such data in 1988.
Through July, completed single-family and condo sales have generated $1.87 billion in transactions, up 35 percent, or $486 million, from the period last year.
The year-to-date dollar volume is from 2,451 single-family home sales, up 11.5 percent, and 3,751 condo sales, up 28.9 percent.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
