O'ahu condominium prices set a record in July with buyers paying about $100,000 more than the nationwide median price for single-family homes.

The median condominium price rose to $329,000 last month, or 22 percent higher than a year earlier, the Honolulu Board of Realtors said yesterday. That compared with the $231,500 median paid for houses nationally in June.

The median price for a single-family home on O'ahu rose to $660,000 last month, up 10 percent from July 2005 and just shy of the record $668,000 set in May.

Bill Chee, president of Prudential Locations, said some of the demand for condominiums is created by buyers forced to lower their expectations because single-family home prices are out of their range.

"Some are really having to move to a different alternative because they really can't afford to move to higher prices," Chee said. "There's a fall-back position in affordability."

Chee added that condominiums are attracting more interest from offshore buyers who are attracted to properties in Waikiki, East O'ahu and Kaka'ako.

While prices continue to climb, the rate of increase is down from last year when prices rose 28 percent. The number of units sold is also declining compared to a year ago, and homes generally remained on the market longer.

"The buyer has more flexibility now," said Jacky Yee, a 40-year-old Waikiki resident who sold a condominium last month after several months on the market. Buyers "have a little more choice."

Yee sold his 692-square-foot one-bedroom condominium at Eaton Square for $385,000. He said he felt he got a good price for the unit, though he had to reduce the price from the $438,000 he originally asked.

The number of days on the market for single-family homes went to 43 from 21 last year.

Condominiums sat on the market an average of 38 days last month, compared with the record low of 13 days a year earlier, according to Realtors' statistics.

Both Chee and Harvey Shapiro, economist for the Realtors' board, said the market was healthier for buyers compared to a year earlier. Last year buyers were rushed into decisions because of fear of losing out on a property.

"There are more choices for buyers to look at before they make a decision," Shapiro said. "You don't have to worry because there are three other people waiting there with full-priced offers."

Still, he said July's sales transactions were at an annualized pace of just under 12,000. That compares to the 13,000 annualized pace late last year when O'ahu's market peaked. In 1997 only 4,000 homes sold.

The number of sales of homes fell 9.3 percent to 379 in July from a year ago, while condominium sales declined 27 percent to 498.

Chee said he expected more of the same during the remainder of the year, with sales activity declining and prices rising at a single-digit percentage rather than double digits. Some areas with less demand may see unchanged prices or even declines, he said.

Yee, the Waikiki resident, said he is still interested in buying another condominium as an investment, even with the recent price increases. This time he may try to buy a two-bedroom.

"I'm not getting out of the market at all."

Reach Greg Wiles at gwiles@honoluluadvertiser.com.