Hawaii’s primary housing market rebounded last year, but a recovery has yet to emerge for vacation residences, according to a new report assessing sales of homes at resorts statewide.

Sales of new and previously owned single-family homes, condominiums and residential lots at master-planned resorts from Princeville on Kauai to Hualalai on Hawaii island declined in average price last year for a fourth consecutive year, the report by local market researcher Ricky Cassiday said.

The average price dropped 12 percent to $943,833 last year from $1.08 million the year before. It was the first time since 2005 that the average was under $1 million. The price peaked at $1.57 million in 2008.

The number of sales also was down last year, dropping 7 percent to 1,200 from 1,291 the year before. Last year’s volume compared with a high of nearly 2,300 in 2005 but is still above a decade low of just over 1,000 in 2009.

Overall, Hawaii’s resort home market generated $1.1 billion in sales last year, compared with $1.4 billion the year before and a high of $2.86 billion in 2005.

"The trend through 2012 shows the market is nothing if not volatile," Cassiday said in the report. "And it is still pessimistic."

Much of the weakness in Hawaii’s resort home market, according to the report, is due to developers not being able to finance new projects even though indicators — such as low interest rates, a rising stock market, escalating hotel room rates and record tourist arrivals — suggest demand is growing.

Production of new resort homes last year was at its third-lowest level in the last 30 years, and only above volume in 1993 and 1994 right after a long recession, the report said.

Developers sold just 188 new resort homes last year, which compared with 195 the year before and 371 in 2010. The peak was 1,037 in 2006.

Meanwhile, resales of existing homes at Hawaii resorts have hovered around 800 in each of the last three years, and are up from a low of about 400 in 2009. The peak was a little over 1,000 in 2005.

"Resales have rebounded since the falloff," Cassiday said in the report. "The developer market has collapsed."

A higher proportion of resales helped pull down the average sale price for the whole market.

A greater proportion of sales at the low end of the market also was a drag on the broader average.

For instance, at the price peak of the market in 2008, there were 265 sales of homes priced over $2 million and 107 sales of homes between $250,000 and $499,000. Last year there were 125 sales at the same high end and 440 sales at the same low end.

One factor that had less negative impact on average prices last year was foreclosures, according to the report.

There were 54 resort properties sold at foreclosure last year, the lowest level in four years. The peak was in 2011 when there were 292 foreclosure sales that represented 23 percent of the market. Last year’s level represented 6 percent of the market.

By island, most resort home sales took place on Maui with 455 sales. There were 358 sales on Hawaii island, 310 on Kauai and 77 on Oahu. Volume dropped on all islands except Kauai, where the number rose by six.

The highest average price by island was Hawaii island at $1.21 million. The average was $1.05 million on Maui, $726,523 on Kauai and $517,231 on Oahu. The average fell on each island except on Kauai.