The topic of whether or not our area is somehow immune to a bubble was suggested by a reader. I made a very similar post back in September, but readership and participation has grown quite a bit since then, so now would be a good time to post it again.
As markets across the country begin to sputter and slow this spring, here in Seattle inventory continues to be low and prices are still climbing. This of course gives fuel to those that argue that the Seattle area is somehow special, and has unique characteristics that will protect it against any real estate price corrections. Although I agree that Seattle is a wonderful place to live (why else would I be here?), I also recognize that every locale has a list of unique characteristics.
However, I am still an open-minded kind of person, and I know full well that there are lots of people around that look at other markets in the country and see a bubble, but think that Seattle is either not in a bubble or has special protection against a bubble bursting (i.e. – price decreases). So, let’s hear from you. Does Seattle have a secret ingredient that makes it special and immune to a price correction in real estate (Microsoft, Boeing, "limited supply," special desirability, etc.), or are we just behind the curve?