After years of economic recession, the Hawaiian islands report a "steady upward beat" in housing sales.

Kauai

"Kauai has perfect weather all year-round with white sand beaches and blue warm oceans," says Realtor Susan H. Gillette. "With the mortgage conditions at their all time low, and with the stock market so unsteady, people are finding that real estate is the best investment in most cases.

She advises, "When properties are listed at fair market value they are usually under contract w/in the first 30 days. However we do find that some properties are being marketed at highly inflated rates. It is important that you consult with a real estate professional so you may understand the true market value and not be swept away with false or unreal pricing."

Maui

"The past three years have seen significant appreciation in Maui real estate," says Realtor Michael Blaz, "from entry level condos to beachfront estates. Even though the mainland economy continues to be soft, second home buyers, vacation home buyers, retirees, and people who are just tired of the "rat race" are flocking to places like Maui. Now is a great time to invest in that second or vacation home; interest rates are at all-time lows, and the tide of baby boomers moving towards their retirement years will continue to push property values. Although we have seen somewhat of a "boom" here recently, when the economy strengthens and Japanese investors once again look towards Maui, an even greater demand is expected."

Oahu

"The island of Oahu is the most populated island in the state of Hawaii," says Realtor George Krischke. "With the city of Honolulu, Oahu is where all the action is. Honolulu is considered the cultural and political center of Hawaii. Oahu represents the "best of both worlds": living in a tropical paradise with top-ranked beaches, hiking trails and perfect climate year round, together with all the benefits a cosmopolitan city like Honolulu has to offer."

Suggests Krischke, "There is remarkable strength in this market. This is truly the best market for buyers and sellers we have seen in years. Mortgage rates are at record-low levels (not seen since the sixties) and prices are still attractive (compared to where prices have been during the past 13 years since the market peaked in 1990). Great for buyers. However since 1997, steadily increasing buying demand has been 'absorbing' the available inventory to levels not seen since records were kept in 1986. Great for sellers. This shortage of inventory is creating more of a 'seller's market.'"

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Published: July 18, 2003

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