The Honolulu Advertiser reports from Hawaii. "The number of O'ahu single-family home and condominium sales peaked in 2005 at 12,607. Sales dropped 17 percent to 10,421 last year, and have continued to decline this year but at a slower pace. Inventory, which dropped to roughly 1,700 units in mid-2005, has been around 4,000 this year."

"Agent Angie Pasion said one of the bigger recent challenges has been dealing with tighter lending standards instilled in the fallout of several Mainland lenders struggling with defaults on exotic mortgages."

"'It has a tremendous effect,' she said. 'I find that more challenging than selling. I have the product, but it's the mortgage companies now providing the pressure.'"

"The shift hasn't been pleasant for Kapolei homeowner Regina Akpinar, who would prefer that the market's robust growth had continued. Akpinar and her husband bought their home during the frenzy in October 2005 after moving to Hawai'i from Florida."

"'We were extremely shocked about the market,' she said, explaining that they often competed against multiple bids above prices asked by sellers. 'We were basically chasing after homes. We were never fast enough.'"

"The couple put their home on the market in February after Akpinar's husband, who's in the military, received unexpected orders to relocate to the Mainland. The Akpinars received an offer fairly quickly, but will take a slight loss on the sale after factoring in money they invested to fix up their home."

"'I think we bought at the worst time, and are selling at a bad time,' Akpinar said."

"Sharon Naukana of 'Ewa Beach bought her house at a great time, 2001 before prices started taking off. But now the single-parent is selling because she'd like to be closer to family members moving to the Mainland."

"Since Naukana's three-bedroom home went on the market in November, there have been no offers. 'It's frustrating because everyone is lowering their prices,' she said, adding that she reduced her asking price by $7,000 to $448,000 but isn't willing to go lower. 'I will be patient. I don't have to sell.'"

"Ben Severson, who's become a real-estate investor, said he's seen sellers price property relatively low to entice competing bids, a strategy that was rare at the top of the market. But many sellers, in his view, are still pricing property as though the boom isn't over."

"'I think people are still living eight or 10 months ago and trying to gouge,' he said."

"Severson is in escrow to buy another Makaha house that was on the market 186 days and had its list price reduced to $239,000 from its tax-assessed value of $279,000."

"Still, other buyers, like Dara Young, who bought a condominium this year, felt compelled to act fast despite the slowing market. Young started searching a year ago as prices were peaking but sales were falling. At the time, she vowed not to rush as a first-time buyer."

"Even though the market had significantly cooled by January, Young saw a Kapi'olani condo she liked a lot, and rushed to put in an offer the same day. 'I didn't let anybody squeeze in there,' she said."

"Sales of existing homes on Kaua'i and the Big Island were lower last month, but the median price of condominium resales on the Garden Isle set a record."

"Broker R. Scott Lindman said the median spike was likely the result of resales of recently developed luxury resort condos influencing a small number of transactions."

"On the Big Island, the single-family home median sale price was $412,000 last month, down 6 percent from $439,900 a year earlier. There were 139 sales, down 26 percent from 187."

"Big Island condos sold for a median $385,000 last month, down 29 percent from $540,000 a year earlier."