Honolulu homes for sale in comparison to real estate sold on the continuous United States is often thought of as extremely over priced.
Lets take a look at why.
It comes down to supply and demand. There are some neighborhoods in Hawaii on the island of Oahu that are somewhat affordable and pricing has not gone up tremendously since the market fall out in 2008-2009... the reason for this is because of the number of available properties. Or, because of the area they are located in. There are the desirable neighborhoods and the not so desirable ones. This most often is attributed to how far from your work place the neighborhood is located, how willing you are to commit to hours in traffic, and how bad the traffic is.
Where there is more of a supply of single family homes on Oahu is the west side of the island. This side of the island has a beauty onto itself... its dryer, is where you always have an amazing view of the sunset, most often you are less than 15 minutes from the ocean, and pricing of real estate is more affordable. Unfortunately, if you work in Honolulu and live on the west side your commute daily will be 60+ minutes times 2 should there be no accidents or road construction - then all bets are off. The good news is that the "second city" is growing and there are more job opportunities on the Westside. If you could live and work on the westside you will be a winner and the supply will benefit you when house hunting.
Now lets take a look at Honolulu real estate, which means homes in the city of Honolulu not the county (county of Honolulu is pretty much the Island of Oahu - I know confusing). Neighborhoods like Manoa, Kaimuki, Waikiki, Honolulu (yes there is even a neighborhood considered Honolulu/downtown) where there is very little inventory in comparison to the Westside and values have risen to the point that single family homes are unattainable and most home buyers must consider condominium living, due to the lack of supply values are high.
Lastly because we are an island we are limited. When you hear that there is a cost of living in paradise they weren't kidding. Everything costs a little more here but it is all so worth it.