The median price was weak — but didn't fall — for previously owned single-family homes sold on O'ahu last month, as the market continued to exhibit pricing stability despite fewer sales.

The Honolulu Board of Realtors said single-family homes sold in January for a median $600,000, unchanged from the same month last year despite a 13.3 percent drop in the number of sales to 228.

No change in January's median sale price from a year ago follows two years in which the pace of price appreciation had slowed to single digits after four years of double-digit growth.

The slowdown has been a fairly gentle shift in the local residential real estate market that contrasts with many Mainland housing markets, where prices have cratered.

"We continue to be fortunate that sales prices on O'ahu are being maintained at 2007 levels," said Dana Chandler, broker-in-charge at Hawaiian Island Homes Ltd. and president of the Honolulu Board of Realtors trade association.

PRICE DECLINE ON WAY?

Still, January's median price was the lowest in the last 12 months, which leads some observers to believe the market could be in store for a mild median price decline this year.

Moody's www.Economy.com forecasts that the local median home price will slide to $594,353 in the fourth quarter of this year, which would be a 5 percent decline from the $625,300 median price in last year's fourth quarter.

Moody's also predicts some recovery of O'ahu's median home price to $619,666 by the 2009 fourth quarter.

Local economists and some other industry observers generally believe O'ahu home prices will stay more or less flat over the next couple of years and not drop significantly unless there's a shock to the state economy that reverses job and income growth, creates a population exodus or boosts interest rates dramatically.

Helping sustain home prices is a state economy that continues to grow, albeit at a slower pace, as well as low unemployment, rising personal income, limited new-home construction and demand from out-of-state retirees and investors.

"Barring some reason for major population loss on O'ahu, home prices are forecast to remain comparatively stable, with only small declines, if any," said Paul Brewbaker, chief economist at Bank of Hawaii.

The softness in O'ahu's housing market has prompted many sellers to adjust their pricing, expectations and marketing strategies.

Local university professors David and Linda Bangert have been trying to sell their four-bedroom, 2 1/2-bathroom waterfront townhouse on Enchanted Lake since August.

The couple initially listed their home at a price comparable to the last previous waterfront property sale in the area, and later reduced the price by about $70,000 to $718,000 while also offering to pay the property's monthly maintenance fee for a year after any sale.

After six months of no offers, the Bangerts last month took an unusual step of offering $10,000 to their students or anyone else who brings them a buyer willing to pay their asking price. Still, they have yet to receive an offer.

INVENTORY UP

According to the Honolulu Board of Realtors, homes sold in January spent a median 61 days on the market before selling, which was close to the 60 days it took in January 2007 and was the longest period since 65 days in March.

Home inventory was up by just more than 1,000 homes to 1,876 last month compared with a year earlier, but was below the recent peak of 1,973 in October.

In O'ahu's condominium market, the median sale price was $324,000 last month, up 1.3 percent from $320,000 a year earlier.

There were 324 sales, down 22.5 percent from 418 in the same comparable period.

Condos sold in January spent a median 42 days on the market before selling, which was down from 55 days a year earlier and 47 days in December.

There were 2,349 condos listed for sale last month, which was up a little from 2,288 a year earlier but below the recent high of 2,444 in October.

The Honolulu Board of Realtor data does not include sales of new homes, and counts sales completed last month that typically correspond to sales contracts signed one to three months earlier.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.