The University of Hawaii Economic Research Organization (UHERO) has released its latest economic research. Here arer some key snippets:

The Hawai'i economy that powered its way through much of this decade slowed to a standstill in 2007. The drag from a weakening visitor industry and an unwinding construction cycle spread to the broader economy. A U..S. recession is now underway. The mainland slump, national credit market problems, and soft local fundamentals mean there will be little growth in Hawai'i for the next two years. Some sectors will see net job losses. Moderate growth is not expected to resume until 2010…The U.S. economy has slowed dramatically since the middle of last year and is now in recession. Output growth will be negative for the first part of the year before a modest recovery begins. Real GDP will expand by only 1.2% in 2008, before strengthening to 2.6% in 2009…We expect a continuation of growth for the Japanese economy, but at unspectacular rates…Overall visitor spending was flat in nominal terms last year and down significantly in real (inflation-adjusted) terms…Heading into challenging economic times, Hawai'i can take comfort in a healthier construction sector than the U.S. as a whole, the stabilizing influence of a large military, and limited direct exposure to the sub-prime mortgage crisis.

What does all this mean for Maui real estate? It cuts in both directions.. A lack of tourism growth is not good news but the slowing construction market means less product supply going forward which should cushion property values. For more information, contact us!