I have been warning anyone that would listen for some time now that local real estate prices are grossly overvalued. I recommended as early as a year ago that anyone thinking about selling their property in the next 3-5 years, sell while values were still high.
An article on the Seattle Times website says that local housing experts have been predicting a slow down since the beginning of the year. That is not real true - most local real estate "experts" have been constantly proclaiming that the Puget Sound area is insulated from a housing slowdown. I said then, and I say now - that is not true. We usually follow national trends - and most of the rest of the nation has been enduring a "slow down" for the past year.
Although everyone seems to be talking about a slowing market - I look for a drastic drop in prices, not just a slowdown. What does this mean to people who are looking to buy or sell real estate?
My recommendation for potential sellers is that if they might want to sell in the next 3-5 years, that they put their homes on the market asap. Don't let the market slow down any more and risk the certain price drops - get your money out while you can.
My recommendation for people considering buying real estate is to sit tight and wait for the prices to drop before you invest your hard earned dollars. Unless you have some great reasons to buy now, you will benefit from the coming lower prices.