The housing market is tied to employment. I live just west of what is called Northern Virginia.
Feb. 2005 sales in Northern Va. were 7800 houses. Feb 2006 the number was 7000. Prices are still going up but it takes a little longer to sell.
Employment is expected to increase strongly.
Location, location, location.
Employment = Housing Prices.
Don't know if what your are saying is necessarily true. We have 2.3% unemployment where I live and the prices for the homes are dropping fast. It is nothing to panic about, just a correction that will sort it self out in the long run, but it is happening. See below: Zillow.com estimate of my house's value. The value of the houses in my area have dropped about 10% over the last couple of months, they have mine down over $20,000, not 10% but... the trend is still going down.
1 week change: -$5,293
Last updated: 03/25/2006