Tom DeRose, - Coldwell Banker Miller-Arnason

Expiration of homebuyer tax credits--lower priced homes sold vogorously in the weeks before the tax credit ended, and then markedly slowed since then
Mortgage rates rising by year end--there is some speculation and concern that interest rates will go up if we experience inflation
Increasing delinquencies and foreclosures--short sales and foreclosures continue, this drives all prices down, and pushes home buyers out of the homeowner market
Continued slowdown of internal migration in the U.S. due in part to underwater homeowners
Potential for weak macroeconomic recovery

Positive factors that suggst the real estate market will recover are:

Local employment growth is coming--the state gained jobs in January and March
Washington state recovery is expected to outpace national recovery (Arun Raha, Washington state economist)
The Canadian dollar is strong--Our border is with Canada, not Greece
Locational advantages of the region: Water and mountain views, Recreational amenities, Lower-cost alternative to Vancouver & Seattle

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