Econo-Girl employed the surest methodolgy for testing the local real estate market. She walked around Washington neighborhoods looking at houses that were for sale.
Good news, little dumplings! House and condo prices are starting to fall. Noticably fall.
Granted, we are talking the Washington, DC market and not necessarily all real estate in the land. But it is beginning to happen. A nice, two bedroom house has been on the market for over a week when it is going for $289,000. In DC terms, that's a steal.
Don't buy a condo or house in the next six months. You heard it here first.