Posted on: Wednesday, May 4, 2005

O'ahu condo prices soaring

By Andrew Gomes
Advertiser Staff Writer

The midprice for previously owned condominiums sold last month on O'ahu rose to a new high of $243,000 as demand surged to deplete inventory to a new low in advance of the traditionally busy summer season.

Buyers snapped up 754 condos last month, a 10 percent increase over the 682 sold a year earlier, according to Honolulu Board of Realtors statistics released yesterday.

Last month's condo volume was the second-highest in the past 12 months, just behind the 776 condos sold in July 2004, when summer sales peaked.

Single-family home prices and transactions were short of records, but were respectively up 25 percent and 16 percent from last year, to 418 sales at a median price of $545,000 in April.

"Sales continued to flourish in April," said board president Judith Kalbrener. "Interest rates are still favorable and the lenders have new products that help buyers to qualify for the higher prices we are experiencing."

The condo market's $243,000 median price, which means half sold for more and half for less, was 19 percent higher than the $205,000 median in April 2004. The previous high was $235,000 in February.

For single-family homes, the $545,000 median compared with $435,000 a year earlier and the previous high of $550,000 in March.

Harvey Shapiro, research economist for the trade association, said low inventory is helping drive price escalation.

There were 940 condos on the market in mid-April. It was the first time in the association's records dating back to 1986 that midmonth condo inventory was under 1,000 units.

Single-family home inventory in mid-April was 814, just ahead of the record low of 784 a year earlier.

"Inventory levels have been on a roller-coaster ride over the past couple years," Shapiro said. "New listings are coming onto the market at a similar pace to last year, so the prediction is that this inventory shortage will continue."

Shapiro said sellers continue to receive and accept offers relatively quickly, shortening the time homes spend on the market. The median time on the market for condos last month was 22 days, a relatively short period but higher than one month last year at 16 days.

The median time on the market for single-family homes last month was 19 days. Only one month last year had a lower median time frame at 17 days.

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