New Fine Homes Report Shows Oahu’s
High-End Home Market Remains Strong

Report examines key indicators for the high-end home market as well as data on 24 Fine Homes neighborhoods on Oahu.

HONOLULU (November 7, 2007) – Prudential Locations today released its quarterly Oahu Fine Homes Report, showing current trends in the market for homes priced above $1 million. After closely examining several key market indicators, the report reveals that despite signs of a slowing Oahu residential real estate market, the high-end home segment remains strong.

Sales & Prices

Through the third quarter of 2007, Fine Homes transactions on Oahu enjoyed a healthy 14 percent increase when compared to the same period last year; while number of sales in the overall all real estate market dropped almost 10 percent. During this same time period, median prices for luxury homes stayed relatively flat, although a handful of prosperous neighborhoods such as East Oahu experienced solid median price increases.

Days on Market

Another important indicator to look at when determining the strength of the Fine Homes market is Days on Market, a number that reflects how long a property is listed on the market before it is sold. The average number of Days on Market for luxury homes decreased 34 percent from 64 days in the third quarter of 2006 to 42 days at the end of the third quarter in 2007. Fewer Days on Market indicates Fine Homes are selling quickly as result of stable luxury market conditions.

Fine Homes Mortgage Market

In the past year, the mortgage industry’s crisis garnered significant media coverage due to the fallout of sub-prime loans. Thankfully, due to Hawaii’s conventional and conservative lending practices, Hawaii’s real estate market has only been mildly affected—reporting one of the lowest foreclosure rates in the nation. In fact, the large majority of Hawaii mortgages are standard, 30-year fixed loans. “Oahu’s Fine Homes market appears to be the least affected by the mortgage issues in the overall real estate market,” said Scott Higashi, Prudential Locations’ Vice President of Sales. “This can be attributed to buyers’ higher incomes, solid assets and cash positions.”

This month, the Prudential Locations’ quarterly Oahu Fine Homes Report also looks at five-and 10-year price appreciation of 27 high-end areas on Oahu—several areas such as Black Point are enjoying significant appreciation, reporting a five-year appreciation of 84 percent and a 10-year appreciation of over 1570 percent. In addition, the report provides consumers with a two-year overview of various market data in 24 luxury neighborhoods. Key indicators include median price, number of sales, price per square foot, Days on Market and percent of list price received. Prudential Locations is the local expert on the residential real estate market – the firm’s research division has been compiling and interpreting data on the Hawaii market since 1969, longer than any other organization in the state.

About Prudential Locations
Prudential Locations LLC is a multi-faceted real estate company with a rich kama’aina tradition in the islands of Hawaii that boasts over three decades of extensive local experience and connections to offer its clients. To benefit customers, the Prudential Locations website, www.PrudentialLocations.com, shows every home, land, condo and real estate listing on Oahu, Maui, Big Island, Kauai, Molokai, and Lanai , with detailed property information to assist its clients.

By being a leader in Real Estate market research and knowledge and continually training more than 250 real estate agents, Prudential Locations produced more than $1 billion in sales in 2005. Prudential Locations was established in 1969 with offices and affiliates throughout the state, and is an independently owned and operated member of the Prudential Real Estate Affiliates, Inc.