Not every market in the U.S. is heading down. Interesting that in spite of sub-prime woes and lenders tightening their grip on monies there are still markets that will appreciate during this crazy real estate market. A great web site, Housing Predictor released their Top 25 Market Predictions for 2008. Hawaii ranked up there with 3 islands on the Top 25. It is my opinion that this is a result of the 1031 exchange process. Those folks who had rental properties in the continental U.S. trade them up for second homes on the islands. Not a bad plan. Rent them out for most of the year and save a bit of time for you and your family.
When you look over the list, Housing Predictor states the trend is to move out to smaller, more rural areas. I believe these small town appreciations like Kellogg, Idaho are the result of investors getting ready for the next boom. Also, take note that during the time of major military job growth, many of these cities are near military bases. Who knows what will happen after the election. You could see continued appreciation in these areas or major depreciation. But politics are even more difficult to predict than the real estate market so I will stick to keeping my ear to the locks on the doors and finding great deals for my clients.