Oahu Home Prices Continue to Steadily Rise

Prudential Locations’ September Real Estate Report takes an in-depth

           look at pricing trends across several Oahu neighborhoods.

HONOLULU, HAWAII (October 12, 2007) – Prudential Locations’ latest Oahu Real Estate Report reveals that median single family home and condominium prices continue to rise at sustainable rates.

The report, issued in the second week of each month, analyzes real estate trends over a three-month period to provide consumers with the most accurate interpretation of Hawaii’s current market activity.

From July to September 2007—compared to the same three-month period last year—the median single-family home price rose 2.4 percent to $650,000 and the median condominium price was up by 3.3 percent to $330,000.

“Oahu home prices have slowly but steadily increased throughout the year,” said Scott Higashi, Prudential Locations’ Executive Vice President of Sales.  “Our current upward price trend doesn’t reflect the dramatic growth we’ve seen in previous years, but prices are still rising at a healthy and sustainable rate.”

The report also shows that while Hawaii’s real estate market continues to enjoy increases in home prices, during this same time period, the number of sales for both single family homes and condominiums decreased. Single family homes sales saw a 12.5 percent decline and condominium transactions dropped 13.4 percent.  However, there were some Oahu neighborhoods, such as Manoa, Waialae/Kahala and Nuuanu that experienced an impressive increase of over 20 percent in single family home sales.  Condominium sales in the Ala Moana/Kakaako area reported the highest increase in sales, up 36.4 percent over last year.

This month, the Prudential Locations’ Oahu Real Estate Report also takes a closer look at median single family home price trends in 15 different Oahu neighborhoods to help consumers understand how the overall upward trend in pricing relates to the different market conditions of each area.

From January to September 2007, nine Oahu neighborhoods experienced an increase in median single family home prices when compared to the same period last year.  The Leeward area enjoyed the highest median price increase, rising 8.3 percent from $350,000 in 2006 to $379,000 in 2007— a $29,000 price boost.

During this same time period, six Oahu areas saw a decline in median single family home prices.  The North Shore reported the sharpest price decrease, falling 10.9 percent to $815,000 from $915,000 in 2006—a $100,000 deficit.

These fluctuations in median single family home prices across Oahu are a result of a variety of unique market conditions.  Areas such as the North Shore, which are comprised of diverse neighborhoods such as agricultural land and luxury oceanfront properties, typically experience much more dramatic shifts in median prices, which is often more indicative of the mix of properties sold than of the overall value of property in that area.   Also, a low number of sales in an area can also impact the median price.

Prudential Locations has the largest real estate research database on the Oahu market, and is the only source for detailed and concise information on not only the 15 areas identified in the report, but for more than 200 specific neighborhoods. The research is available to consumers through Prudential Locations agents or the website, www.prudentiallocations.com.

In each month’s Prudential Locations report, consumers will find key statistics for 15 Oahu areas such as sales volume and median price over a three-month comparison along with key insider observations. Prudential Locations’ Oahu Real Estate Report is issued during the second week of each month.

NOTE TO MEDIA: Prudential Locations executives are available to comment on the report and on real estate market trends in general. Please call Char Chang, 531-6087, ext. 104, to set up an interview.