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The Honolulu Advertiser
Posted on: Wednesday, March 7, 2007

Maui house sales surge as prices drop

By Andrew Gomes
Advertiser Staff Writer

Sales of previously owned single-family homes on Maui last month surged to their highest level in more than a decade for February, though the condominium market was down significantly.

Median prices likewise were mixed, rising for condos to $560,000 but falling for single-family homes to $645,000, according to statistics compiled by the Realtors Association of Maui.

The changes in median price and sales suggest that more single-family home buyers have become active as prices have subsided.

"Sales continue as sellers and buyers find common ground in a healthy market," said Terry Tolman, chief executive of Maui's real estate trade association.

Since November, median prices have been below $650,000 and sales have been higher, compared with the same month a year earlier. Prior to November, the median price ranged from above $650,000 to $780,000 for about 18 months, and sales were usually, but not always, lower.

Last month, the $645,000 median price for single-family homes was down from $669,500 a year earlier and well off the record $780,000 set in May 2005 and repeated in July 2006.

There were 110 single-family home sales last month, up 83 percent from 60 a year earlier and more than in any February since at least 1993.

Condo sales last month totaled 69, down 42 percent from 119 a year earlier. The $560,000 median condo price was up from $430,100 in the comparable period.

Tolman said good inventory — about 1,080 single-family homes and 1,339 condos — is giving prospective buyers plenty of options, while attractive interest rates continue to encourage sales.

The time it has been taking to sell homes has been little changed for condos but is taking longer for single-family homes.

The median time it took to sell a condo was 143 days last month, one fewer day than a year earlier. For single-family homes, the median number of days on the market was 159, up from 130 a year earlier.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.