FHA loan limits have increased, the Fed has cut rates, the economy is good in the Seattle area, housing prices are stable or declining, and we are in a buyer's market. So with all this news, why are we not seeing an increase in market activity? Why are buyers still not coming into the market? My opinion on this issue is derived from working in the field and dealing with it first hand: there is no sense of urgency. Buyers are hanging back to see what will happen next. Will housing prices continue to drop? How low will rates go? There seems to be a great deal of uncertainty in the buyers' minds right now – not to mention the surplus of inventory to choose from!

What will stimulate the housing market? A sense of urgency. That pressure will only come when interest rates and housing prices begin to rise again…and that is when you will see buyers leaping into action.