O'ahu home sale prices in June broke year-old records, but don't expect the market to resume the double-digit appreciation that peaked out in 2005.

The median price for existing single-family homes sold last month set a record at $685,000 — eclipsing the previous record of $668,300, set in May 2006.

But last month's price was a modest 7.2 percent gain from $639,000 in June 2006, according to the Honolulu Board of Realtors, which released June sales data yesterday.

A record also was set for condominiums. They sold for a median $334,000 last month, up 7.7 percent from $310,000 in the same month last year. The previous record was $329,000 in July 2006.

Market watchers said the new records are notable in light of several months of mostly flat prices, but that a new string of climbing median prices and records is not in the forecast.

Still, Kapi'olani Community College students Matt Maeda, 22, and Erin Villanueva, 19, are discouraged by June's push of housing prices into new territory.

"A house is looking out of the question realistically," said Maeda, who's also unsure whether he can even afford to buy a condo. "It's still pretty pricey. It's irritating ... but I'm not surprised because there's a limited amount of land."

Chason Ishii, president of Coldwell Banker Pacific Properties, said June's higher single-family home price was in part due to weaker activity in less pricey Leeward and Central O'ahu neighborhoods contrasted with stronger activity in pricier East and Windward O'ahu areas.

"It seems like the activity is based more on the East and Windward side," he said. "That's why you see the shift in the median sales price."

According to Board of Realtors data, the number of sales declined by roughly 15 percent to 50 percent in areas from 'Aiea to Nanakuli. Mililani sales were down 25 percent. In contrast, sales were up or didn't drop as much in Windward neighborhoods, while East O'ahu sales were down about 15 percent.

Total sales for O'ahu declined in a continuing general trend. There were 338 single-family home sales, down 8.2 percent from a year earlier. Condo sales dropped 14.7 percent to 547.

"Although the number of sales has diminished from their peak in 2005, the market is still very active and maintaining a healthy equilibrium with adequate supply and strong demand," said Berton Hamamoto, president of Property Profiles Inc. and the Board of Realtors.

PRICE GAINS MODEST

The 7 percent median-price increase for O'ahu single-family homes in June was relatively strong for the year, coming up just shy of an 8 percent rise in April that came close to setting a record. Otherwise, the median had not been up or down more than 2 percent or so since December.

Still, this year's top price gains are modest compared to 15 percent to 30 percent gains in recent years.

For the first half of this year, the median sale price for single-family homes was up 2.4 percent to $645,000, and the condo median was up 5.7 percent to $325,000.

The median price is a point at which half the homes sell for more and half for less.

Harvey Shapiro, research economist for the Honolulu Board of Realtors, guesses that O'ahu's single-family home median price for the whole year will end up close to $650,000 for a roughly 3 percent gain.

"Anyone expecting prices to decline I think is going to be disappointed," Shapiro said, adding the caveat that a significant rise in interest rates, which he said is doubtful, could push down prices.

Early in the year, Shapiro was more unsure about whether prices would move a little up or down, and was guessing that the median price would be between $600,000 and $650,000.

Last month, the University of Hawai'i Economic Research Organization forecast a 3 percent decline this year for O'ahu's median single-family home sale price, followed by a slow rise back to $630,000 by 2009.

DECLINE FORECAST

Moody's Economy.com forecasts that O'ahu's median home price will decline 0.6 percent this year, followed by small gains to $634,710 by 2009.

The actual gain this year to date suggests that the market — despite the slowing sales — may be more resilient than analysts previously believed.

O'ahu's general price upswing this year also is running counter to a national trend for lower prices.

According to the National Association of Realtors, the combined median prices for homes, including condos and single-family homes, have been 0.3 percent to 3.1 percent lower every month this year through May, the latest month for which data is available nationally.

Shapiro said fairly strong demand is keeping pressure on O'ahu home prices.

For the first six months of the year, sales were down 5.7 percent for single-family homes to 1,902, and down 15.3 percent for condos to 2,978.

But if the pace holds for the latter half of the year, 9,800 sales would be more than double the just under 4,000 sales at the bottom of the market in the mid-1990s, and just above the previous cycle peak at about 9,600 in 1988. The recent peak was 12,600 in 2005.

Helping keep sales and prices afloat is a healthy inventory that so far this year has been stable — 1,700 to 1,800 single-family homes, and 2,200 to 2,300 condos per month.

Single-family home inventory is off from a nine-year high of 2,052 in November, and had been below 1,000 for much of 2004 and 2005. Condo inventory was at a nine-year high of 2,750 in September, and had been under 1,000 in mid-2005.

LESS TIME ON MARKET

Brokers said the level inventory and more sellers pricing their property attractively have resulted in homes generally spending less time on the market in recent months.

In June, single-family homes spent a median 41 days on the market before selling, the lowest since January 2006 and down from a recent peak of 70 in February.

Condos spent a median 37 days on the market before selling last month, the lowest since April 2006 and down from a recent high of 59 in February.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.