Hawaii real estate market more stable than mainland

The Star Bulletin had an interesting article yesterday that said Hawaii won't have a real estate meltdown like the mainland has been having for 2 years now.

My summary - Even though sales are slowing, the median and average prices are likely to remain flat though year's end. Some of the best neighborhoods are actually increasing.

Three Hawaii real estate experts - Bank of Hawaii Chief Economist Paul Brewbaker, Prudential Locations Chief Executive Bill Chee and Mike Sklarz - shared their thoughts during "Real Perspective 2008: The State of Hawaii Real Estate."

We have a very low foreclosure rate, as people here tend to be very financially conseravative, and also severe building permit restrictions have kept inventory low and demand strong. Our city and state government have severely restricted building permits, so there's a lot less housing available here in Oahu.

Sklarz added that while there is potential for growth from international markets, such as China, it is not likely to offset the losses for several years.

I would add that Canadians are still flocking to Hawaii as their dollar has increased in value by about 30%, giving them amazing buying power compared to a few years ago.