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The Honolulu Advertiser
Posted on: Tuesday, January 8, 2008

Neighbor Island prices drop housing market

By Andrew Gomes
Advertiser Staff Writer

Hawai'i's cooling housing market was more pronounced on the Neighbor Islands last year, as median sale prices largely were down from 2006 and contrasted with a slight gain previously reported for O'ahu prices.

Median prices slipped for existing single-family homes sold last year on Maui, the Big Island and Kaua'i. Prices also were lower for condominiums on the Big Island, but were higher for Maui and Kaua'i condos.

The number of sales was mostly lower as demand generally continued to ease for residential property statewide.

The softening of single-family home prices was greatest on Maui where the median sale price was down almost 9 percent to $630,069 last year from $690,000 in 2006, according to the Realtors Association of Maui. The number of sales was up by 5 percent to 1,138 from 1,082 in the same period.

On the Big Island, single-family homes sold for a median $395,000 last year, down 6 percent from $421,000 in 2006, according to Hawai'i Information Service. There were 1,671 sales, a 20 percent decline from 2,084 in the same period.

Kaua'i single-family homes sold for a median $650,000 last year, down 4 percent from $675,000 in 2006, Hawai'i Information reported. There were 409 sales, a 14 percent decline from 475 in the same period.

Last week, the Honolulu Board of Realtors reported that O'ahu's single-family home median sale price last year rose 2 percent to $643,500 over $630,000 in 2006. There were 3,627 single-family homes sold, a 10.2 percent decrease from 4,041 sales in 2006.

The median is a point at which half the sale prices were higher and half were lower.

For condos, the median price declined 8 percent on the Big Island to $392,490 last year from $426,498 in 2006. There were 516 sales, down 31 percent from 750 sales in the same comparable period.

On Maui, condos sold for a median $550,000 last year, up 6 percent from $518,000 in 2006. Sales were down 5 percent to 1,179 transactions from 1,247 in the same period.

Kaua'i's median condo sale price jumped 40 percent to $565,000 last year from $405,000 in 2006. The increase was a rebound from a 7 percent dip in 2006 over 2005. But observers also noted that the small size of Kaua'i's condo market is most likely to produce dramatic variations in median prices often swayed by relative few sales at the top or bottom of the market.

There were only 295 Kaua'i condo sales last year, down 58 percent from 698 in the prior year.

On O'ahu, the median condo sale price last year was $325,000, up 5 percent from $310,000 in 2006. Sales were down 14 percent to 5,499.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.

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