The Star Bulletin reports on Hawaii's housing bubble. "The start of the New Year saw a continued lag in Kauai's housing market. The pace of house sales declined 34 percent, with as few as 35 homes changing hands. 'It's more of a realistic market, which ties in with the national vibe of people buying hybrids not hummers,' said Jimmy Johnson, broker in Kauai. 'The euphoria is gone.'"

"Almost every category of Kauai's residential real estate has changed into a buyer's market, Johnson said. 'If a property is overpriced no one will look at it: There are too many other available properties.'"

"While seller's cannot command the 'dream on' prices of the past, Kauai's home values are still strong, Johnson said."

"On the Big Island, the number of single-family home and condominium sales dropped last month. Single-family home sales fell 25.3 percent to 142 in January, while condominium sales fell 31.5 percent to 61."

"Buyers looking for Big Island properties aren't showing the frenzy of the previous year's market, Paula Beamer said. 'A lot of our buyers come from the mainland and live in markets that are slowing down,' Beamer said. 'Buyers aren't showing nearly the hysteria they did last year. They aren't in such a great hurry to put an offer on the table.'"

"Home values haven't dropped as a result of the change in the market, but returns on investment aren't strong enough to support the speculation that was going on in 2005, she said. 'We've lost the flippers,' Beamer said. 'These days, it's difficult to buy a property and see the value double in a matter of months.'"