This is why I think the bubble is bursting ...
1. Hawaii's house prices went through the roof - all areas that had the highest increases stand to have the steepest declines in the near future. The US (including Hawaii) have never seen a run-up of prices as inflated as the 2000 housing bubble. Bubbles deflate (market correction) and it has already started on the Mainland.
2. You've heard it before, "Hawaii is unique" blah blah blah. No we are not. We get hit just like our mainland counterparts ... remember the 80's and 90's? The only difference is things happen to us later - the inevitable gets delayed.
3. Foreclosures are on the rise. A 218% increase in April? Scary!
4. Inflation - harder to keep or buy a house in Hawaii when inflation (especially gas and food) run rampant ... don't forget that we already sit on a 30% higher cost of living than our Mainland counterparts.
5. Interest rates are going up. The FEDS made a monster mistake by focusing on the economy - now they have to re-focus on inflation after their economic policies deflated the dollar and increased inflation. How many houses will sell in Hawaii at a 9% 30-year fixed mortgage?
6. Mainland publications are projection huge drops in Hawaii housing prices - to the tune of 16% and higher. Why is the Hawaii media slow to react? Advertising?