Neighbor Island home prices up

By Andrew Gomes
Advertiser Staff Writer

Neighbor Island residential real estate markets showed signs of weakness in January as sales dropped in some segments on Maui, Kaua'i and the Big Island, though prices continued rising by mostly double-digit margins compared with a year earlier.

The strongest and weakest performing markets were on the Big Island, where previously owned single-family home sales rose 20 percent to 168 in January, compared with 140 a year earlier, according to data compiled by Hawaii Information Service.

Big Island condominium resales, however, dropped 16 percent from 83 to 70 during the same period.

Maui home resales also were up and down, according to data released yesterday by the Realtors Association of Maui. Transactions for previously owned single-family homes on the Valley Isle were down 4 percent, to 92 from 96 in the year-over-year period, while condo transactions rose 11 percent, to 149 from 134.

On Kaua'i, the total market was down as single-family home resales slipped 8 percent, to 48 from 52, and condo resales fell 9 percent, to 39 from 43, according to Hawaii Information.

The Neighbor Island markets compared with January resales on O'ahu that rose by 23 percent for single-family homes and 17 percent for condos.

Ernest Medeiros, broker in charge at Ala Kai Realty Inc. in Hilo on the Big Island, said there is no shortage of demand for homes, but supply constraints are hurting sales in some areas. "The demand far exceeds the supply," he said.

Medeiros also said the big increase in demand, which often keeps him busy from 7:30 a.m. to 8:30 p.m., is driving prices higher.

Neighbor Island home prices were up across the market. They were highest on Maui where the median price for an existing single-family homes sold in January was $525,000, up 38 percent from $379,500 in January 2003.

The next priciest median, which is a point where half the sales were for more and half for less, was for Kaua'i single-family homes at $384,450, up 8 percent from $354,500 in January 2003. That was followed by Kaua'i condos at $362,000, up 57 percent from $230,911 for the same period.

The median-priced Maui condo in January sold for $285,000, up 19 percent from $239,813 a year earlier.

On the Big Island, the median price for previously owned condos sold in January was $261,200, up 55 percent from $168,500 a year earlier. Big Island single-family homes sold for a median of $235,000, up 20 percent from $195,500.

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