2008 was a year of change and the housing market was no exception. After almost 6 years of a record-breaking real estate market cycle, this was much longer than in recent memory, ended in 2008 amidst global economic challenges. As sales came to an abrupt halt it has caught most sellers off guard and impacted buyer confidence. It might serve to assist in price stabilization and affordability in some areas of the market.

As the New Year begins there is the realization that prices will need to come in line with the new economy which in most cases is lower than 2008 and perhaps moving back to the prices of 2006. Interest rates continue to move downward and inflation is in check so buyers are able to borrow money at lower levels than 2008 or 2007. Any real estate market is driven by the willingness of the seller and the buyer to come to a meeting of the minds. Only as we move forward into 2009 will we see if this will be the case. ...more