Posted on: Wednesday, June 4, 2003

Home resales increase

By Andrew Gomes
Advertiser Staff Writer

The smooth and steady rise in sales of existing homes on O'ahu continued last month, as record-low interest rates pushed volume and prices to new 12-month highs, according to a Honolulu Board of Realtors report released yesterday.

At $365,000, the median resale price of a single-family home in May was up from $362,500 in April, the second highest price in the last 12 months. In May 2002, the median price, in which half the sales were higher and half lower, was $360,000.

Also setting a 12-month record, was the number of single-family home purchases at 393, a 22.8 percent increase over 320 in April and a 7.1 percent increase over 367 in May 2002.

The single-family resale volume was the highest since 1987.

The median price for condominium resales was the third highest in the last 12 months, at $166,000, but that was still up from $165,000 in April and $145,000 in May 2002.

The number of condo buyers tied a 12-month high, at 564, up 2.2 percent over the 552 sales in April and up 20.5 percent over May 2002. There were also 564 condo resales in March.

For the first five months of the year, the total dollar volume of home resales was $1.2 billion, up 29.8 percent from $928 million during the same period last year.

"What can I say? Business is good," said Kazumi Takeya, principal broker of Aina Nui Properties Ltd. in Kaimuki. "I was just complaining about coming in second best in a multiple-offer situation. There is a lot of competition."

Harvey Shapiro, research economist for the Realtor board, said mortgage rates, which have dropped eight times this year and reached record lows three times in May, have helped keep homes affordable despite the rising prices.

"The housing market is continuing to show strength," he said. "We do not anticipate the kind of price declines we experienced after the Japanese bubble had run its course."

The Honolulu Board of Realtors data comprise sales completed in May on O'ahu, reflecting sales contracts signed two to four months prior.

The sales data do not include new home purchases.

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

Correction: An earlier version of this story gave an incorrect defintion of median prices