Sales of Oahu homes rose to their highest level in more than a year and a half in October, although still below the peak of recent years.

Figures released by the Honolulu Board of Realtors also show condominium sales were up in October, but that prices are down from a year ago.

The report shows that volume continues to build from low transaction levels that occurred late last year and early this year as buyers pulled back from real estate purchases in the wake of Wall Street's financial meltdown and worries about the economy. The transaction volume was still off by more than a third from October 2004, a year in which Oahu transactions peaked.

"The current rate of sales for both single-family homes and condominiums were both slightly up in October, which is truly encouraging in light of the current economy," said Sandra "Sam" Bangerter, president of the Honolulu Board of Realtors.

"The median prices for single-family homes were up a bit and down for condominiums, but still within relatively stable price ranges. The first-time homebuyers federal tax credit has been helpful in raising buyer awareness."

The report was based on sales of existing homes and condominiums as opposed to new housing built by developers and others.

There were 281 sales of single-family homes during October, or almost 16 percent more than a year earlier. It was the highest volume since March 2008, or 19 months.

Michael Pietsch, president and chief executive officer of Title Guaranty Escrow, said it appears people are a little more comfortable with their financial situation and are taking advantage of low interest rates. He said Realtors have told him inventory is drying up for higher-priced homes, including those in the $1.3 million to $1.4 million range.

In the condominium market, there is more inventory and sellers have to be flexible on pricing, he said.

"With the low interest rates, people are finally making decisions," Pietsch said. "Buyers are getting out there and sellers are getting more realistic."

He said this includes sellers being more receptive to offers and meeting buyers halfway. The market may also be affected by more foreclosure sales and a smattering of sales to buyers from other countries.

The figures also show:

• The median price of single-family homes was $605,000. Although that was down from last October's median of $625,000, it marked a high point for this year. The median is the point where half of the prices are below and half are above.

• There were 381 sales of condominiums, the most since May 2008, or 17 months.

• The median condominium price was $295,000. That compared with the year earlier median of $325,000.

Ricky Cassiday, a Honolulu-based real estate researcher and analyst, said the higher prices in the single-family market are made even more surprising by the higher number of sales.

"This is a bit out of character for a down market," Cassiday said in an e-mail. "I don't see it as the bottom, but it might be a hint of one."

The higher condo sales also pose questions about where the market is in the current sales cycles and what is causing the numbers to rise.

"This is a much bigger number than economic conditions warrant, I think, which points to the government's subsidizing first-time home buyers, as well as a higher number of distressed sales, i.e., foreclosures and other kinds of forced sales," Cassiday wrote.