Hawai'i 3rd in home price rise

By Andrew Gomes
Advertiser Staff Writer

Hawai'i single-family home prices have been on a tear this year, yet a federal government survey finds price appreciation in Nevada and California outpaced Hawai'i's in the second quarter.

Nevada's average price increase of 7.53 percent topped 4.85 percent in California and 4.47 percent in Hawai'i for the three months ended June 30, compared with the same period last year.

For the 12 months through June 30, Nevada was again at the top of the chart, with 22.92 percent growth, displacing Hawai'i, in second place at 18.90 percent. Hawai'i had been in the top spot for the 12 months through March 31.

The report from the Office of Federal Housing Enterprise Oversight said the 9.36 percent average appreciation in home prices nationwide over the past year was the largest annual increase since 1979.

Agency chief economist Patrick Lawler said the data show "no signs of the long-anticipated, and ultimately inevitable, slowing of house price inflation."

In Honolulu, however, prices have softened recently.

The median price of a single-family home in Honolulu rose from $400,000 in January to $481,800 in June, according to Honolulu Board of Realtors data tracking all sales of previously owned homes. But in August, that median — a point where half the homes sold for more and half for less — fell to $450,000, declining 6.3 percent from $480,000 in July.

Ranked for home price appreciation in 220 major metropolitan areas for the 12 months ended June 30, Honolulu came in 23rd, with a 16.83 percent increase, the federal study said.

The report is based on data from repeat sales and refinancing of single-family homes with mortgages purchased or securitized by Fannie Mae or Freddie Mac.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8085.