Examining Housing Data Over a Three-Month Period Reveals Most Accurate Market Trends

Prudential Locations’ July Real Estate Report takes a closer look at

Oahu’s North Shore’s real estate activity

For Immediate Release

HONOLULU, HAWAII (August 14, 2007) – Closely examining real estate trends is essential to successfully navigating Hawaii’s unique real estate market –  and to understanding why the market is behaving a certain way.  Prudential Locations’ July Oahu Real Estate Report urges consumers to look at sales and pricing data over a three-month period for best accuracy.

From May to July 2007 – compared to the same three-month period in 2006 – median condominium prices jumped 7.4 percent to $335,000.  During this same time period – May to July 2007 – median single family home prices experienced a 2.3 percent rise, to $665,000.  If however, one just looked at the median single family home price in July 2007 they would find that the price went down 5.3 percent to $649,000 when compared to the June 2007 record high median price of $685,000.

Comparing month to month numbers can show dramatic changes – and can often be skewed based on the mix of properties sold that month. Several high-priced oceanfront sales can tip the median price higher, while not so top-priced properties sold in a certain month will make the median price appear lower. This is why it is important to examine data over a three-month period to get the most precise indication of market activity and median prices.

 The report also revealed that although prices continue to enjoy steady upward growth, the number of sales for both single family homes and condominiums declined 8.6 percent.

“The Hawaii real estate boom peaked in 2005 and we attribute this downturn in sales as part of a normal market trend,” said Scott Higashi, Prudential Locations’ Executive Vice President of Sales.  “Even though there are fewer buyers and sellers in the market, the values of the homes that are selling are continuing to show positive growth.”

The Prudential Locations’ July Oahu Real Estate Report also highlights the market activity of Oahu’s North Shore area to help consumers understand how property location and number of sales can affect median pricing.  The North Shore area consists of 14 neighborhoods, spanning from agricultural homesteads to oceanfront properties.  Over the last 12 months there have been a total of 11 sales in these neighborhoods.  Within these sales, the median price ranged from $446,000 in Paalaakai, an older residential sub-division to an impressive $2,860,000 in Kawailoa, a residential area with beachfront lots.  The median price for homes in the North Shore area is significantly affected by the wide range of mixed property values as well as the low number of sales per month.  Thus, in order to most accurately measure the North Shore area’s growth, one should look at the long-term, year-over-year trends. This month’s report analyzes median pricing trends for this area over the last 13 years, and shows that there has been steady median price increase since 2003 with a slight decline in the last year.

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.

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 2006.  Prudential Locations Hawaii is ranked in the top 4 percent of all Prudential Real Estate affiliates.  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.