Seems to be more and more bad news in the US housing market and in the lending arena.  The National Association of Home Builders Index fell to the lowest reading since 1991.  The NAHB Index tracks builder’s perceptions of current market conditions and expectations for home sales over the next six months. 

It is amazing that Hawaii has done so well compared to the rest of the country, and the wonder has to be, with the mounting bad housing news around the rest of the country, when will it effect Hawaii’s real estate market, or will it?  There are a lot of reasons Hawaii has done well, but the market in Hawaii does have a large number of out-of-state buyers, so if other markets suffer declining prices then the buyer pool in Hawaii should be effected, thus effecting home demand and home prices.  Hawaii’s home prices just hit record highs for both SFH’s and condos, so you would think the bad news in other markets would eventually effect the Hawaii market.  Any thoughts?