An article from the Honolulu Advertiser titled, Hawaii Home Sales Buck Previous Trends came out in early May and helps explain why the Hawaii housing market has done so well compared to some other areas of the country, and why this real estate cycle if different from teh boom to bust cycle of the late 80’s early 90’s.   As mentioned in several of the posts below, Hawaii’s economy is still very strong and growing, unemployement is at an all time low, there have been limits to over building here on Oahu over the last few years that have helped the supply-demand equilibrium that have hurt so many mainland areas, and interest rates are still historically low as well.  One other key factor is that there are quite a few Baby Boomer Buyers who want to purchase here to set themselves up with a place in paradise that they will retire to in 3-10 years.  The housing outlook looks pretty good compared to a lot of markets nationally for the next few years.