Just thought you might want to see what the Housing Predictor is predicting for the 10 hottest real estate markets.  Do you think Hawaii is on the list?

Yeap! Twice.  Once at #1 (Honolulu) and again at #3 (Maui)  Their prediction is a 6.8% price appreciation for Honolulu.  I think that is a bit of a stretch, but to quote them:

As one of the nation’s top recreation and resort markets, Honolulu, Hawaii has seen housing and condo prices rise, despite slumping markets on the mainland. Fueled by regulatory changes in Japan monetary policy, the Hawaiian market should see an infusion of investors purchasing condos and homes during the year. As a result Honolulu is Housing Predictor’s #1 Hottest Buyers Market in 2008.
The Top 25 with the highest forecast appreciation have the greatest probability of reaching their forecast of the more than 250 local housing markets Housing Predictor forecasts. In 2007 Housing Predictor’s forecasts were 86% correct within a 1 to 2 percent margin