Falling real estate prices at resorts - Another reason why Oahu is better than Neighbor Isles

The Advertiser report today that at the end of 2007, Hawaii resort real estate sales (mostly on the Big island and Maui) declined 20 percent last year to 1,535 properties. While average prices rose 22 percent to $1.6 million for the full year, prices fell the second half of the year.

761 of the 1,535 Hawaii resort real estate sales were for under $1 million, down from a year earlier when 1,119 of 1,914 sales were under $1 million.There were 160 sales for over $3 million last year, up from 133 in 2006. That's pretty amazing. I guess the recession hasn't hit the very wealthy.

These numbers count Oahu real estate sales at master-planned communities with resort zoning, which includes Ko Olina Resort but exclude sales in Waikiki. But most of the numbers come from Maui, Kauai, and the Big Island, where there are a lot more large resorts. On Oahu, Ko Olina is the only big resort selling property. Sure there are some condos at Turtle bay, but nothing big enough to effect our market here.

That's a big reason why Oahu's real estate prices have remained stable while prices in Maui, Kauai, and the Big Island have seen sharp declines. Our market is more for people who live here and work here, meaning owner occupancy is far higher on Oahu than the Neighbor islands.

That helps our market stay stable, as investor speculation is lower, and recessions effect vacation homes and investment properties more than they do owner occupied properties.

So if you're considering buying property in Hawaii, Oahu real estate once again sounds like the best investment.