Posted on: Wednesday, January 14, 2004

Sales of new homes up 22%

By Andrew Gomes
Advertiser Staff Writer

Consumers busy buying toys and other gifts spent less time buying new homes at the opening of the holiday shopping season in November, but home developer sales still rose over the previous November.

A 22 percent year-over-year increase, from 155 sales contracts signed in November 2002 to 189 signed last November, added to what should be the homebuilding industry's best year in a decade, according to market analyst Ricky Cassiday, who compiles new-home sales data for Hawaii HomeLoans.

"The sales are great," he said, projecting that new-home sales on O'ahu would be up about 20 percent for the year.

November sales figures, which Cassiday released yesterday, were the lowest for the year but normal for the holiday season, when consumers tend to shop for gifts instead of homes.

The November increase came primarily in high-rise condominium and townhomes, rather than single-family home sales, which drove the market the previous November.

Cassiday said high prices for single-family homes are pushing buyers to more affordable multi-family projects. The top seller in November was a hotel conversion project in Waikiki, The Windsor, which accounted for 50 of the 189 sales.

The next three highest-selling projects were townhomes in Mililani, 'Ewa and Ko Olina. The largest single-family home seller was The Renaissance by Castle & Cooke in Waipahu near Waikele.

Cassiday said purchase contracts signed in December should get a boost from the new Ko'olani high-rise condo in Kaka'ako, which will help replenish low inventory in the market as the top-selling condo projects sell out.

The average new-home sales price in November was $375,937, down 1 percent from $379,386.

Sale closings, which trail sales contracts by several months, were up 38 percent, to 194 in November compared with 141 in November 2002.

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