Kahala is still the crème de la crème of Oahu’s real estate market— spacious mansions, beach access and a short commute to downtown make it the most desirable neighborhood of single-family homes on the island.

Average home prices in Kahala reached a record-high $1.8 million in 2007, and at the very tip-top of the real estate market, dominated by super-affluent buyers and sellers, larger economic worries often don’t mean much. In fact, Kahala is usually the last neighborhood to be hit by a slowing housing market and the first to recover.

If there is a weak spot in Kahala, it’s in what Prudential Locations Realtor, Partner and Kahala Expert Dolores Bediones calls the “gap group” – those homes priced in the $2.5 million to $4 million range. These homes are often ones that were remodeled in the 1990s, and while they sit on fabulous off-beach lots, and have some of the most luxurious amenities, dated décor can be a danger. Buyers at this level typically look for move-in ready homes that don’t need much updating.

Still showing the most strength in Kahala is the entry level price point – about $1.4 million to $1.9 million. Homes at this price are often fixeruppers or even tear-downs. But investors can still profit from gutting or rebuilding a home on a great Kahala lot and reselling it soon after. And the very top end – Waterfront and beachfront houses at $7 million and above, still sell, but often take several months or even a year. It’s not for lack of buyers though. These ultra-wealthy buyers typically shop for additional homes when they are in Hawaii – during the holidays and summer time – and so the sales cycle is very much seasonal.