Despite Softening Sales Volume,

Oahu Home Prices Remain Stable

The report also spotlights the market conditions of Kailua, Oahu

HONOLULU, HAWAII (May 14, 2008) – The April Prudential Locations’ Oahu Real Estate Report reveals that despite slowing real estate sales, Oahu home prices are holding steady.  Additionally, this report spotlights the neighborhood of Kailua and examines why this beach community is one of the most sought after real estate areas on Oahu. 

The report analyzes real estate trends over a three-month period to provide consumers with the most accurate interpretation of Oahu’s current market activity.  From February to April 2008—compared to the same three-month period last year—the number of single-family homes sold on Oahu decreased by 25 percent.  Remarkably, this drop in sales volume did not result in a significant decrease in median single-family home prices, which dipped a slight 0.9 percent to $630,000.  In fact, some areas enjoyed price appreciation, including Hawaii Kai and Pearl City-Aiea at 18.3 percent and 11.6 percent respectively. 

“The fact that home prices remain stable in this slowing market, illustrates Hawaii’s resilience and independence from the mainland real estate market,” said Scott Higashi, Prudential Locations’ Executive Vice President of Sales.  “Our report this month shows that the decline in sales has not directly corresponded to a similar drop in median home price.”

During this same time period, the number of condominiums sold on Oahu also fell, down 26 percent, while the median condominium price remained steady—holding last year’s value at $325,000.  In the  high-demand condominium area of Ala Moana-Kakaako, both median price and sales saw  increases.  Notably, the smaller condominium market of Kailua experienced a decrease of 8.3 percent in median volume and enjoyed a 4.2 percent increase in median price.

In addition to analyzing overall sales and pricing trends, the April Prudential Locations’ Oahu Real Estate Report also examines market conditions of the popular beach community of Kailua, located in Windward Oahu.  Buyers are attracted to this small community, known for its white sand beaches, breathtaking scenery, boutique shops and delicious eateries.  Also, downtown Honolulu is a convenient 20 minute drive over the Pali Highway.

With properties ranging from luxury beachfront estates to myriad homes for couples or families in established areas, Kailua can be separated into 26 distinct neighborhoods.  The median price of a single-family home in Kailua is $799,500 –26 percent higher than the Oahu average.  The median condominium price in Kailua is $430,676—an impressive 33 percent above the Oahu average.

“The neighborhood of Kailua is just one example of how Oahu’s finite housing market equates to real estate as a valuable asset, no matter the climate of the overall economy,” added Higashi.  “With its prime location and limited growth plans, Kailua home inventory remains low and demand continues to rise—resulting in higher than average home values.”

While price is a key determining factor for consumers when navigating the real estate market, it is also essential for both buyers and sellers to understand that Oahu’s home market offers a wide mix of properties. Each property has various characteristics that affect its value, such as type of home, size and location.  Knowing price trends specific to a neighborhood is important for consumers to make successful real estate decisions.

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 on Oahu and markets throughout the state. 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 Monica Salter, at 808.531.6087 x 102, to set up an interview.