Last March I predicted that the bottom of the market had passed, and that 2009 and 2010 would see rising prices and sales.  Well, this past month we saw increases in both the median price and sales volume of homes around Oahu, compared with the same month a year ago.

The median price of single family home sales in all of Oahu rose to $597,500 in January, a 10.8 percent increase from $539,500 in January 2009. Did you let that sit for a minute?  A 10.8 percent increase in just one year?  That is a seriously good market in any economy, especially one of the worst economies of the last 100 years!

On top of that there were 162 homes sold, which is up 32.8 percent from a year earlier. Would you have thought that January 2010 would see such a massive increase in prices and sales?  Well it should have been simple to see - since the economic world was ending last year at this time, it makes sense that this year would be so much better.

The number of condominiums sold also soared 42.8 percent to 227 units!  Now the median price of condos fell 2 percent to $299,000, which I believe is mainly because of Waikiki.  There are a lot of investors in Waikiki, and that market has been struggling.

On top of the rising sales and price, the inventory of homes available remains very low, so I expect to see the market improve throughout the Winter and Spring.