Oahu’s housing market is off to a lackluster start this year.

The number of sales decreased in March as did the median price for single-family homes, according to a report released yesterday by the Hono­lulu Board of Realtors.

There were 249 sales of previously owned single-family homes, down 2.4 percent from a year earlier, while condo sales dropped 8.1 percent to 331, the report showed.

The median price for single-family homes was $548,500 — the lowest since January 2009’s median of $539,500. The March median was down 8.6 percent from $600,000 a year ago. The median is down 5.5 percent so far this year.

The median price for condos climbed a modest 1.6 percent to $315,000 from $310,000 in March 2010. It is up 2.5 percent year to date.

Realtors say the limited number of quality homes on the market has much to do with slow sales and lower prices.

"It’s getting a little bit of a slower start than the previous year, but inventory is very low — it’s the lowest it’s been in years," said Jon Yama­sato, a Realtor at Prudential Locations LLC. "There’s a lot of people who bought in 2006, 2007 and 2008, and now they either want to sell but can’t because if they sell they don’t have the cash to buy something else, or they’re upside down so they’re choosing to stay where they are."

Single-family home inventory totaled 1,401 at the end of March — 12.1 percent less than 1,593 the year before — while condo inventory totaled 1,948, a 5.3 percent reduction from 2,056.

In addition, sales closed at a slower pace last month compared with a year earlier, with single-family homes on the market for 41 days, compared with 34, and condo listings for 46 days, up from 36.

Although product is limited, there is still great demand for quality inventory that’s ready for occupancy, Yama­sato said.

The Ewa Plain, Oahu’s largest submarket, saw the most single-family home sales last month — 48 compared with 42 a year ago — for a median $445,000 versus $440,000, respectively. Meanwhile, condo sales were the highest in Waikiki, totaling 68 for a median $296,000. That compares with 66 sales in March 2010 for a median $318,500.

"Demand is still there if you have a good product," he said.

"It’s really neighborhood-dependent. There are areas in town where there’s very little inventory and still multiple people that want it, while other neighborhoods have an abundant supply of houses on the market. The gist of it is there’s still demand out there, it’s just that buyers are more picky."

Cautious buyers also want more for their money and are willing to wait for better product, he added.

If no additional homes were put up for sale, it would take 5.4 months to exhaust Oahu’s inventory of single-family homes, compared with 6.6 months in March 2010. For condos it would take 5.8 months to deplete the inventory based on the pace of last month’s sales versus 6.3 months the year earlier.

"The Oahu median prices for both single-family homes and condominiums are still constant, while the sales volume for the market has slowed," Joyce Naka­mura, president of the Hono­lulu Board of Realtors, said in a press release. "The tightened inventory levels and low mortgage interest rates make it an opportune time for well-qualified buyers to purchase a home."

Realtors expect the market to get busier after tax season as consumers seek investments and look to settle into new homes before the summer and the start of the new school year.

NEIGHBORHOOD WATCH

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

SINGLE-FAMILY HOMES

CONDOMINIUMS

Source: Honolulu Board of Realtors Star-Advertiser