Early this month local economist Paul Brewbakwe agreed with the Oahu real estate industry that property prices on that island are set to climb higher than the current median home sale price of $664,000. The highest median price on record was set at $685,000 in 2007. Depleted inventory and no new construction are driving the housing price spiral.
Then about two weeks ago it was reported that May 2012 median home sale prices on Maui set a record low. The Maui economy, like the other neighbor island economies, is falling farther behind Oahu’s recovery. The good news is the neighbor islands will eventually follow Oahu. Here, West Hawaii, Big Island housing inventory continues to fall. Rising prices must follow if this continues. In neighborhoods along the Kona-Kohala Coast, custom home building has returned.