The link below (to article) was just posted on Forbes.com, regarding the country’s most stable real estate markets. Seattle was #1 for stability. We seem to hit a sweet spot between lack of housing units (still) & low # of non-conforming loans and job growth.

1. Seattle, Wash.

• Median home price: $395,000
• Annual price change from 2006: 8.9%
• Projected price change to 2008: 3.09%

“Seattle continually bucks national housing trends. Price appreciation in the Emerald City has been strong over the last six quarters. Besides a very low unsold housing inventory and a strong sales rate, there are very few non-conforming loans, which lessens the chance of widespread foreclosures and delinquencies. While the market is slowing, the strong lending situation and sales rate bode well for the market.”

It also mentions that it won’t be another “gangbusters” year (in any US market), but Seattle will still do “OK”.
Read the Article Online at Forbes.com