Oahu Home Sales Up While Prices Continue to Fall

Oahu home sales were up in September, while home prices continue to fall.The Honolulu Board of Realtors said Friday that 284 single-family homes were sold on Oahu last month, up 4 percent from 273 in September 2010. The increase followed a 23 percent jump in August. Before that, sales volumes had declined for four consecutive months on a year-over-year basis.

The median sales price dropped to $570,000 in September, an 8 percent decline from $620,000 the same month a year ago. It was the fifth straight drop in the median price on a year-over-year basis.

Condo sales rose 19 percent to 364 last month from 306 in September 2010. The median price slipped 4 percent to $316,500 from $330,000.

“We’re encouraged by September’s numbers, with sales of both single-family homes and condominiums increasing over last year,” said Joyce Nakamura, president of the Honolulu Board of Realtors.

“The fact is that consumers are purchasing properties that are appropriately priced for today’s market. And while it appears that foreclosures and short sales are continuing to drive prices down, the good news is that there are a lot of great buys out there, especially given the low interest rates,” she said.

The trends for Oahu home prices can’t seem to get on track at the same time. While it is great news that home sales are up, the continuing sliding prices for Oahu homes has to be a concern, especially for realtors.

One thing that may be helping home sales on Oahu is the fact that 30-year mortgage rates continue to fall, and are now at record lows.