Take a look at Bellingham Residential Real Estate for November 2012 you can see the price and number of sales were up from last year but down from last month, continuing on that roller coaster ride of rising and falling prices. If you take a look at the absorption rate chart you can see we are in a sellers market. Inventory or the number of homes for sales is still very low. Low inventory, or number of homes for sale starts to create scarcity.
Interest rates remain at all time lows and they are expected to stay that way into the future. Banks have money and they are lending it to those with good credit and work history.
Now we are waiting to see what the fiscal cliff fiasco will bring. If the politicians who control the government send us in the right direction they can create prosperity and with it bring the housing market back to a healthy state, or they can send us back into another recession, we will just have to wait and see.