We received a mixed-bag today. First the good news. GDP for the second quarter (ended June) was revised upwards to 4%, an outstanding number.

Surging exports and business spending propelled U.S. growth to the fastest pace in more than a year

OFHEO also reported good news in that second quarter housing prices increased 3.2% year over year. But they only increased .1% over the first quarter. While both of those numbers were positive, they were the weakest increases in a number of years.

"House prices were basically flat in the second quarter despite tightening credit policies, rising foreclosure rates, and weakening buyer sentiment," Ofheo director James Lockhart said. "Significant price declines appear localized in areas with weak economies or where price increases were particularly dramatic during the housing boom."

But this good news was tempered by a modest  increase in initial unemployment claims. Also, no one expects the economy to grow at anything like 4% going forward. The expectation is more like half that number.

Finally, Goldman Sachs released a research note that predicts further significant price and demand declines in housing through 2008.

What does this mean for Maui property owners? Well, the near-term news was ok, but if Goldman is correct, we have some unpleasant times ahead in terms of prices. Maui, while unique, is not immune to mainland trends.