Oahu Home Prices Jump 35 Percent Over 2004

Oahu home prices soared 35 percent in May over a year ago, as median prices climbed to $610,000 for single family homes and $265,000 for condominiums. In May, 2004, prices were $445,000 and $195,000, respectively.

Home prices have more than doubled, islandwide, since 2002.

In a related development, the number of Oahu homes and condos for sale dropped for the first time since 1997. The reduced figure did not reflect any softening of demand, but rather a lack of inventory. Nonetheless, Herb Conley, co-managing director of Coldwell Banker Pacific Properties, believes the number will soon rebound based upon transactions in escrow. Conley also said:

"There's going to be continuing pressure on prices to increase with demand the way it has been. It's the supply side that's driving the prices up at the moment, because the demand is still strong."

So far in 2005, $2.18 billion in Oahu residential real estate has been sold, an increase of 30 percent over the same five months in 2004.

Single-Family home prices have risen similarly on neighboring islands: Maui, up 36 percent; Big Island, up 34 percent; Kauai, up 14 percent.

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