The waves keep on getting higher in Hawaii but sadly, home sales are getting down. The credit crunch has slowed down the tourism activity in the tropics but in a way, this has come as a pleasant surprise to those who can still purchase their tickets to the Aloha State.

Oahu, the third largest island, has seen home sales dropping by 33 percent while the once stronger high rise market fell by 50 percent. Buyers are still expecting lower home prices this quarter as no signs of rebound are plausible. RealtyOutlook.com predicts a prolonged drought in the island’s tourism sector. With the bankruptcy of ATA and Aloha Airlines, fewer tourists are expected to hit Honolulu’s once pricey resorts.

Construction has stood still too with several condominium projects getting folded last third quarter. Fewer investors are gambling their money in real estate so with regards to Honolulu’s home values, it is forecasted to go down by 15 percent in 2009.

Hilo’s economy is propelled by retail and tourism. Its property market has been battered by foreclosures but these houses are the better deals picked up by buyers. This is expected to continue throughout the year. Hilo’s housing values will further drop by 14 percent.

Maui still has a number of condominium projects on going but developers are forced to take lower prices for each unit. Values of homes and condominiums are projected to fall by 13.5 percent this year.

Kauai’s natives from Polynesia have allowed only certain portions of the island for real estate development. This has been practiced for decades so building limits have restrained progress in the Garden Isle. RealtyOutlook.com forecasts a 12 percent plunge in home values.