There was a great read from the Wall Street Journal on October 5th titled "The Shifting Calculus Of Buying A House". It talks about their predictions of which cities will see a falling market and by how much. The good news, in this article it states that Honolulu Hawaii seems to be fine with only an expected - 0.3% decline. Our projected peak is 2nd quarter 2007 and our bottom in the 4th quarter 2008. What this means is they are expecting prices to continue to rise till the 2nd quarter of 2007 then come down .3% 4th quarter a year and a half later.
What is even more interesting is some of the other cities that are projecting a much larger decline than Honolulu. According to the Wall Street Journal, Reno Nevada is expecting a drop of 17.2%, Parts of California up to a 15.7% decrease in value.
You should really check it out!