Twelve miles northeast of Honolulu, the state's capital city, Kailua, Hawaii, is a community on  the windward coast of Oahu island along Kailua Bay. The city is home to over 35,000 residents. Kailua real estate consists mostly of single-family homes, though there are also a few condominium complexes. Though the market was initially hit by the flailing U.S. and global economy, matching trends in real estate markets across the islands and the greater American market, the most recent statistics show a mostly improving market, with higher median sales prices and lower numbers of foreclosures in Kailua.

The market for single-family homes in Kailua saw most signs improving. There were 31 new Kailua homes for sale listed on the market in August of this year, unchanged from a year ago, but single-family home sales fell for the month by annual rate of 17%, to 19 from 23. The median sale price rose in August $817,000, up 3.5% from $789,500. Homes commanded 94.7% of their listing prices when sold, up 1.5% on-year. The days on market and inventory both fell on an annual basis. Kailua homes for sale spent just 20 days, on average, on the market before selling, down from 47 a year ago, a 57% improvement. Meanwhile, the current inventory of single-family homes stood at 123, down from 153 in August 2009.

The signs of improvement in the market for condos in Kailua has been improving more slowly than for that of single-family homes. There were seven new condos listed in August, up from six last year in August, and the number of closed sales in the month was unchanged at eight. The median price for condos, unlike home prices, actually fell annually in August, to $320,000 form $380,500, a 16% decline. Sellers, meanwhile, were getting more out of their condos than last year, with resales commanding 95.8% of asking prices, up by more than 7% from a year ago. Condos did clear off the market more quickly, spending an average of just 20 days up for sale before closing, compared with 66 days last year. Inventory remained mostly the same, rising a bit to 28 condos in August, from 24 a year prior.

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