Hawaii developers council discuss state of Hawaii real estate

Joe Toy
Joe Toy

By Tracy Gladden - bio | email

HONOLULU (KHNL) - The current state of the economy and cooling real estate market leave people who live here in the islands wondering about the market's future direction. Hawaii's real estate market is in a downward trend but experts say it's a normal part of the business cycle in Hawaii.

Harvey Shapiro is the Research Economist for the Honolulu Board of Realtors.

"The poor economic conditions, what's going on on the mainland but in Hawaii, we've been relatively solid, we don't have the sub prime problem that they are seeing on the mainland," he said.

In the next 18 months, tourism will be effected by the consolidation of airline routes which make it more difficult for visitors to make it to Hawaii.

Joe Toy is the President of Hospitality Advisors.

"We're definitely seeing a decline in occupancy our busy seasons are much more shallower and our off seasons will be much more steeper in terms of loss of occupancy," he said.

Helping to cushion the loss of visitors, is less hotel rooms. Toy says over the past five years more have transferred to condos or timeshares.

"I think were going to be seeing some major discounts and a lot of deals. You stay five nights get two nights free," Toy said.

Because of the reduced demand for housing people aren't bidding so high, and sellers are concerned.

"We just have to wait and see what happens with the national as well as Hawaii economy," Shapiro said.

He says the reduced demand for housing is nothing to be worried about just yet. Panel experts say the real estate market in Hawaii is more balanced between buyers and sellers than it is on the mainland.