In a press release sent out today, the Northwest Multiple Listing Service (NWMLS) says that homebuyers are finding a bigger selection and less competition in the local marketplace. It also goes on to say "But brokers say there is little chance of a bursting housing bubble in Western Washington". Click here to see the release at EastsideBusinessWeekly.com
As a real estate broker, I'd have to disagree with the last statement - it is my humble opinion that there is a great chance of the bubble bursting. I'll even go one step further - I fully expect that there will be a bursting bubble in the next 6-12 months, if not sooner.
There are certainly many factors involved here, but I look at the current market values as overly inflated, boosted by low, low interest rates and a high percentage of loans that are interest only and/or are adjustable rates with big balloon payments due.
I'm going on record here as saying that I believe that anyone who does not plan on spending the next 5-10 years in their home should consider selling - and doing it quick. If you would like to consider this option, I would be happy to discuss it with you.