One of the questions I am frequently asked is whether I believe the value of real estate in Hawaii will decline. The fact is, I am a trial attorney and rely on real estate experts to advise me about issues related to the value of Hawaii real estate and the duties that real estate professionals owe to their clients. However, like almost everyone else, I read about real estate. In the July 11, 2008 issue of The Pacific Business News (“PBN”), there was a very interesting article concerning the price of home sales in Hawaii. According to the PBN, the prices of homes in Hawaii dipped, while condo prices actually rose because the available volume declined sharply. The article states as follows:
While the number of home sales around Hawaii dropped by an average of 29 percent during the first half of this year, compared with 2007, prices remained resilient in most markets with single-family homes showing small declines and condominiums showing increases.
Condo prices so far this year are up on all islands, by as much as 10 percent, as prices ease back on single-family homes. Sales on Oahu are down by more than 26 percent compared with the first six months of 2007, but prices are on a par with that period. The Big Island and Kauai saw the greatest drops in the number of sales, especially Kauai, where single-family homes sales were 40 percent lower than the first half of last year.