Posted on: Wednesday, November 3, 2004

Home prices hit median record

By Andrew Gomes
Advertiser Staff Writer

After two months of O'ahu single-family home sales declines, the market rebounded last month with the median price reaching a record $485,000.

The volume of single-family homes sold on the island in October was 441, up 16.1 percent from 380 in the same month last year, according to the Honolulu Board of Realtors.

The $485,000 median price, which is a midpoint where half the homes sold for more and half for less, was $10,000 higher than the median price in September and $86,000 above the median a year ago. The previous high was $481,800 in June.

"The O'ahu housing market remains strong," said Judith Kalbrener, president of the trade organization's board of directors, in a statement. "All of this is good news for Hawai'i, as it signals increased real estate value for both shoppers and buyers."

The condominium market was weaker, as the volume of sales dropped 0.6 percent last month to 665 compared with 669 a year earlier. The decline was the second consecutive year-over-year monthly drop.

Condo prices remained near the $219,000 record median set in September, at $218,000 last month. In October 2003, the median condo price was $185,000.

Daine Enos said she feels somewhat fortunate to have bought a 57-year-old Wahiawa house in August for $320,000.

"I wanted (to buy) way before — two years ago," she said. But she and her husband, who then had a 7-year-old daughter, had just welcomed a son into the family and purchased a new truck.

Enos' family was pushed into the housing market when their monthly rent for a Mililani house went from $925 to $975 and the landlord later said he might need the home for his mother. A month and a half later, the Enos clan had found their first home.

"It didn't take us long," she said. "As soon as we saw it, we jumped."

Harvey Shapiro, research economist at the Board of Realtors, said that based on pending home sales, the last two months of the year should be robust "with prices maintaining their advance."

October sales figures are based on purchases completed during the month. Completed sales typically trail signed purchase contracts by two to four months.

For the first 10 months of the year, sales of single-family homes are up 6.4 percent to 3,910 compared with 3,675 for the same period last year. Condo sales are up 13.7 percent to 6,559 compared with 5,769.

Total dollar volume of single-family home and condo sales during the same comparable 10-month periods is up about 34 percent to $3.9 billion over $2.9 billion.

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