Here we go again!

Once again, things appear to be riding the coaster. Rates hit a 17 month high, but slipped right back down again - typical ebb and flow of the interest rate market. All of the indicators that we watch and report to you rose and fell as well. It is funny, the Post had an article in Saturday's real estate section about sellers offering incentives to buy their homes (trips, cars, closing costs, etc) and my Mom said how strange it was to hear that sellers would do that. I responded - it is 1990 all over again. How soon people forget the market of 15 years ago, yet they hold onto the very recent past in terms of the real estate market and pricing strategies. Sellers were offering similar enticements back then as they are now...the months of supply were comparable, prices had decreased then stabilized, days on the market were high and people negotiated. The difference today is our diverse economy, job creation, and unemployment levels. In the last report I mentioned that we have the second lowest unemployment rate in the country. This week I read our area is 4th for highest gain in job creation. People like it here because of cultural activities, access to mountains and the ocean, restaurants, and of course, DC (except on the Mall at night). Another reason companies and people like to come here is that we are reasonably priced in comparison to other markets. We didn't make the top 10 overpriced markets in the country. In comparing our areas with others, we have a more reasonable cost of living, higher wages, more job growth and more "affordable" housing. Back to the conversation with my Mom, she followed it up by saying "the real estate market always bounces back". Sound advice to buyers sitting on the fence.