December 15th, 2007 -

The proverbial Sky is not falling. The economy is charging along, especially in Seattle. While housing prices have dipped in October/November this creates great home buying opportunities.

If you look beyond the headlines you will notice the economy is holding steady. Especially unemployment which is at 30 year lows of 4.6 percent. Also personal income has held steady in the U.S. and Gross Domestic Product is forecast to GROW in 2008.

On top of all this great news interest rates are still at historical lows. This is caused by the Federal Reserve Board adjusting interest rates to hold off inflation. History tells us that during tight housing markets inflation and interest rates have been high which either causes or compounds the tight housing situation. This is certainly not the current case.

Another good trend is Mortgage companies are offering an abundance of safer mortgage products, call Elena and she can direct you to her highly knowledgeable and ethical mortgage brokers which we have a long track record of working with.

In 2007 5.5 million homes traded hands, this is the fifth highest year on record for existing home sales.

Another interesting statistic is in 2007 housing prices dipped a scant 2% nationwide. This is hardly a "sky is falling" mentality the media is preaching.

Which brings us the the last point: When watching the news or reading the newspaper, look past the headlines or teasers. I know it can be hard to read a long boring article but the facts are often buried deep in the article, and often the facts don't back up the sensational headline. The media makes money by selling advertising, the larger the audience - the more they charge for advertising. The media outlets attract viewers by delivering dramatic headlines and teasers.

The National Association of Realtors is also upbeat. "We think the current quarter is probably the bottom of the market," says spokesman Walter Molony.

What caused the Real Estate Boom?

• The real estate boom was fueled by low interest rates and easy credit. Additionally a shortage of housing supply -- caused overbuilding in some areas.

• Also a large Speculators who entered the market late hoping to flip property for a quick buck are dumping houses and condos, (especially condos,) on the market.