Oahu home-price
fall leads U.S.

But the National Association
of Realtors finds statewide unit sales
rank fourth in the nation

By Russ Lynch
Star-Bulletin

Lower home prices and higher sales volume pushed Hawaii's residential real estate market into the national spotlight in a report issued today.

Statewide sales of single-family homes and condominium units through the first three months of 1998 were running at an annualized rate of 13,500 units.

That's a 36.4 percent increase from the first quarter of 1997, the biggest increase in the western United States and the fourth-biggest increase in the country, according to a report by the National Association of Realtors.

In its survey of prices, the association looked at resales of existing homes and apartments in metropolitan areas.

Honolulu had the second-highest median price in the country, $288,500 for the first quarter, after San Francisco's $303,600.

However, Honolulu's price also showed the biggest percentage decline in the country, a drop of 8.1 percent. The Honolulu price was still more than double the national median price of $125,900 for the first quarter, which was up 5.4 percent from the same period last year. The median price is the level at which half the homes sold for more and half sold for less.

The NAR said continued low interest rates and healthy affordability conditions across the country caused home buyers to flock into the market, pushing resales volume up in 45 states and the District of Columbia.

In resales volume, comparing seasonally adjusted annual sales, the South led the country with with a 19.3 percent increase in sales pace for the quarter, compared with the first quarter of last year. The Midwest followed with a 13.5 percent increase and the sales pace in the Northeast was up 11.3 percent. The Western region had an overall increase of 9 percent.

Nationally, the pace of resales was up 14.3 percent, the NAR said.