A total of 410 existing single-family homes were sold last month, compared with 339 in June 2002. The median sales price increased 17.7 percent from a year ago to $388,500.

Harvey Shapiro, research economist for the board, said low mortgage rates in June continued to spur buyers despite rising home prices.

"The price increases have been offset by declines in mortgage rates," he said.

The number of single-family homes sold has risen steadily since 1999, while prices have been climbing since 2000, Shapiro said.

"The last time we were at these levels was during the Japanese bubble" in the late 1980s and early 1990s, when home values rose sharply only to fall back as the Japanese economy faltered.

This time though, "Prices have been going up much more gradually, so I'm not expecting there will be a bubble effect," Shapiro said. "I think these prices can be sustained."

Likewise, Bill Chee, chief executive for The Prudential Locations LLC in Honolulu, said today's market doesn't compare with previous booms, which at times were driven by external factors such as the strength of the Japanese economy.

He pointed to demographic trends that are fueling home sales, including the baby-boom generation. This generation, which now is inheriting wealth from its parents, is more free-spending than its Depression-era predecessor.

"It's not something that just bubbles up," Chee said. "Those baby boomers expect to be around awhile. That helps the market as much as the interest rates."

Condominium resales also rose in June to 537 units ­ up 30 percent from June 2002. That's slightly down from a 12-month high of 564 in May. Meanwhile, the median price of condominiums resold in June rose 13.6 percent year-over-year to $179,500.

Through June the total value of homes and condominiums resold was up 32 percent to $1.52 billion, compared with $1.15 billion during the first six months of 2002.