A face trying to figure the market

We here provide a paraphrase of Washington Realtors Market Report for the State of Washington 2008. The Report was compiled in cooperation with the Washington Center for Real Estate Research Washington State University.

The question posed:  if there’s a lot more inventory out there and talk of a “buyer’s market” whey haven’t home prices dropped?

Because the demand has never gone away.  Increased inventory allows buyers to be more selective and better match homes to their need.  Buyers have been able to negotiate prices somewhat. 

Individual homes may be selling at prices a bit below the maximum they could achieved in 2006, but buyers have been getting bargains, buying more house (or land) and spending more total dollars.

Due to pent up demand, reasonable seller pricing and great financing available, prices should remain at least steady and may continue to rise, though in moderation.

Prices should not drop appreciably unless there is a significant increase in the interest rates, the unemployment rate or a tremendous surge in new home construction this year.

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