Hawaii Real Estate Will Not Melt Down

According to a March 12, 2008 article in the Pacific Business News, "Hawaii's low rate of foreclosures and its stable mortgage industry suggest the state won't experience a 'real estate meltdown' like on Mainland, according to the latest report from Prudential Locations. Hawaii is somewhat insulated from housing troubles. The report noted the limited supply of land, universal appeal as a place to own a second home, steady influx of military personnel with housing allowances and tight mortgage lending laws have protected Hawaii from the mortgage crisis. 'Currently, Hawaii has the lowest mortgage delinquency and default frequency in the U.S.,' said Bank of Hawaii chief economist Paul Brewbaker. While home sales in Hawaii have been declining since the end of 2004, home values across the Hawaiian Island have remained more stable than mainland counterparts."