Oahu Homes Prices Remain Stable

For the Eighth Straight Month

Prudential Locations’ October Oahu Real Estate Report

highlights the Sold-to-List Price Ratios

for key Oahu neighborhoods.

HONOLULU, HAWAII (November 14, 2007) – The latest Prudential Locations’ Oahu Real Estate Report reveals that since March 2007, Oahu median prices for single-family homes and condominiums have held strong for the eighth month in a row. 

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.  During the most recent three-month period from August to October 2007, the median single-family home price rose 3.2 percent from $630,000 in 2006 to $650,000 in 2007—a $20,000 jump.  Median condominium prices experienced a 4.4 percent increase from $315,000 in 2006 to $329,000 in 2007—a $14,000 boost.

“Eight straight months of solid home prices indicates that there is still strong buyer demand in Oahu’s real estate market,” said Scott Higashi, Prudential Locations’ Executive Vice President of Sales.  “Buyers are still making purchases in the market because they recognize that owning a home in Hawaii is a great long-term investment.”

The report also shows that even though Oahu’s home prices have enjoyed positive, sustainable growth for most of the year, over the last eight months, the number of sales for both single-family homes and condominiums have slowly declined.  From August to October 2007—compared to the same period in 2006—sales for single-family homes fell 14.6 percent; and condominium transactions dropped 13.3 percent.

In addition to analyzing overall sales and pricing trends, this month’s report also examines the median Sold-to-List Price Ratio of single-family homes in key Oahu markets.  This ratio tells consumers what percent of the asking price buyers paid for homes.  In order to calculate the median Sold-to-List Price Ratio, the Prudential Locations’ research department reviewed Median Sold Price in relation to Median List Price for all homes sold over the last twelve months (November 2006 to October 2007).  Over the last year, Oahu’s single-family home market reported an overall Sold-to-List Price Ratio of 98 percent. 

It is essential for both buyers and sellers to be abreast of this information so that they know what homes have sold for in their area of interest.  For buyers, knowing the true market value of similar homes will help determine a fair offer to place.  For sellers, understanding how to price a home competitively will increase buyer interest and sell the home quicker. In a market where the number of sales transactions is slowing, it is essential for both buyers and sellers to know how to value a home in their area.

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.