Two months into the new year, Oahu’s condominium market is off to a good start, but a slight weakness is showing in broad prices for single-family homes.

Previously owned single-family homes sold for a median $570,000 in February, 1 percent less than the $575,500 median in the same month last year, according to a Honolulu Board of Realtors report released yesterday.

The decline followed a 4.2 percent median price decrease in January, and is at odds with what had been a fairly consistent upward trend last year that resulted in a 3 percent overall gain in 2010.

Buyer demand also was somewhat lackluster with 181 single-family homes sales in February — just four more than 177 a year earlier.

In contrast, Oahu’s condo market saw a 20.9 percent surge in the number of sales to 295 last month from 244 a year earlier. The median condo sale price rose 7 percent to $320,000 from $299,000 a year earlier, and was an improvement after a 2.7 percent year-over-year decrease in January.

Several local economists believe prices for single-family homes on Oahu will continue last year’s price rebound, based on an improving economy and buyer demand.

To be sure, two months can’t be deemed a trend. Also, the median price is down only 1.7 percent over those two months, which isn’t much to make up over the next 10 months. Still, the early weakness isn’t particularly encouraging.

February’s median price was even with January’s at $570,000, which is the second-lowest median price for any month in the last year after $565,000 in April.

Observers note that a significant influence in Oahu’s overall median home sale price can be the quality mix of homes sold. Because the median is a point at which half the homes sell for more and half for less, the calculation can be affected by the location, age, size and quality of most sales.

This mix factor is apparent in some of February’s sales data. For instance, four homes in the Aina Haina/Kuliouou area sold last month and a year ago. But the median price last month was $624,000 compared with nearly $1.5 million a year earlier, suggesting that the majority of homes sold last year had vastly superior qualities.

In Oahu’s largest submarket, the Ewa Plain, there were 27 sales last month for a median $415,000 compared with 30 sales a year earlier for a median $417,500. In the next most active submarket, the Kailua/Waimanalo region, there were 19 sales last month for a median $769,000 compared with 16 sales for a median $745,000 a year earlier.

Joyce Nakamura, Honolulu Board of Realtors president, characterized the market as being in good shape, with an increasing number of homes selling and sellers often receiving multiple well-priced offers. "There is still pent-up demand in the marketplace," she said.

The University of Hawaii Economic Research Organization issued a report last month that forecast a 2.1 percent rise in Oahu’s median home price this year, representing a downward revision from a previous expectation for a 4.3 percent gain.

At a real estate conference organized by local residential real estate brokerage firm Prudential Locations last month, local economist Mike Sklarz of Collateral Analytics said more desirable neighborhoods are likely to see real estate values rise in contrast with neighborhoods with less demand and high levels of foreclosures that keep downward pressure on prices.

One broad indicator suggesting positive momentum for the market is the connection between the pace of sales and inventory. If no more homes were listed on the market, it would take 5.4 months to exhaust Oahu’s inventory of single-family homes. Sklarz said a figure between five and six puts upward pressure on prices. "It bodes well for the market going forward," he said.

Inventory totaled 1,395 homes at the end of last month, down 9.7 percent from 1,545 homes a year earlier.

One negative factor in Oahu’s single-family home market was the time homes spent on the market. Homes that sold last month took significantly longer to sell, spending an average of 58 days on the market before sellers accepted an offer. A year earlier the average time on the market was 38 days.

For condos, units that sold last month also spent an average 58 days on the market, up from 51 days a year earlier. Inventory declined 4.1 percent to 1,931 units from 2,014. If no more condos were listed for sale, it would take 5.7 months to deplete the inventory based on the pace of sales last month.

A NEIGHBORHOOD WATCH

Oahu single-family home and condominium resales data for February by neighborhood with the percentage change from last year:

SINGLE-FAMILY HOMES

CONDOMINIUMS

Source: Honolulu Board of Realtors