Oahu Median Home Prices remain steady in 2008

Oahu’s median home price remained fairly stable in 2008 according to resales statistics released today by the Honolulu Board of REALTORS®. According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system, the statistics are:

During December, sales of 194 single-family homes and 294 condominiums were reported through the Board’s MLS, decreases of 19.2 percent for single family homes and 31.2 percent for condominiums, compared to the same month last year. This brings the 2008 total for single-family home sales on Oahu to 2,741 and 3,933 for condominium sales, decreases of 24.4 percent and 28.5 percent, respectively, over the same time period one year ago. The median prices paid for Oahu properties in 2008 were $624,000 and $325,000, respectively, a decrease of 3.0 percent for single-family homes from the same time period in 2007 and no change in price for condominiums. The total dollar sales volume generated in the housing market for 2008 was $3.680 billion, a decrease of 26.1 percent, or $1.297 billion, compared to the $4.977 billion produced one year ago.

“December home prices were more stable than for cities on the Mainland, while residential sales slowed,” said Sandra “Sam” Bangerter, newly-elected President of the Honolulu Board of REALTORS®. “Prices have softened in most areas on Oahu, but the percentage declines have been only single digits. It’s reported that Mainland prices have fallen between 18 and 30 percent, while the Honolulu housing market shows remarkable price resiliency, even with the number of reduced sales.”

“The Honolulu sales figures reflect the impact of the current economic crisis, which started in mid-September,” added Harvey Shapiro, Research Economist at the Honolulu Board of REALTORS®. “Although inventory remains low and sales speeds are up, the prices being paid are still close to where they’ve been for a couple years. If demand continues to weaken, or even stay as low as it is now for an extended time, prices will have to fall even further to keep the housing market moving. If the federal TARP program is successful, look for sales activity to pickup on Oahu within the next few months.”

During the fourth quarter, the number of sales declined from one year ago and the median price paid for a single-family home decreased by 2.4 percent and the condominium price decreased by 1.1 percent. The total dollar volume of sales was $727.7 million in the fourth quarter, a decrease of $299.0 million, or 29.7 percent, from the $1.026.7 billion in sales achieved in the same quarter last year.

The Honolulu Board of REALTORS® also released annual resale figures for 2008. They are:

During 2008, the number of sales declined from one year ago and the median price paid for a single-family home decreased by 3.0 percent and the median condominium price was unchanged from 2007. The following table provides the annual 2008 median prices for the Oahu neighborhood groups.

GEOGRAPHIC AREA	SINGLE FAMILY HOMES	Change	CONDOMINIUMS	Change
Metro Oahu (Town)	$ 722,500		$ 320,000	NC
Diamond Head	$ 936,000		$ 437,500
Hawaii Kai	$ 850,000		$ 539,000
Kailua	$ 774,500		$ 415,000
Kaneohe	$ 663,800		$ 400,000
North Shore	$ 797,500		$ 360,500
Central Oahu	$ 580,000		$ 307,500
Leeward Coast	$ 380,000	NC	$ 154,000
Ewa Plain	$ 465,000		$ 299,000
Makakilo	$ 560,000		$ 299,000
Waipahu	$ 550,000		$ 280,000
Pearl City	$ 627,300		$ 302,900

(This report reflects information about resales of existing properties only and does not include new home sales. All of the MLS information is compiled from sales reported during the cited months; this data is known only after closing of escrow. The time delay between the signing of a sales contract and the closing of escrow is usually between one and three months.)