Approaching April 2009 in the Northern Virginia Area, inventory in general is down and sales are beginning to happen.

Interest rates remain under 6%. And, loans are available for purchasers with 3.5% downpayment, employment documentation and moderate good credit recordation.

The liquidity is alive for the 90% of mortages that are backed by the Federal Government, i.e., FHA, Fannie and Freddie Mac.

Thus, home prices are affordable and mortgage money is available. Smart purchasers are coming forward at this time.

Foreclosures and Short Sales are entering the marketplace. This can have an effect on reduced values in certain areas.

The lending abuses and fraud of Wall Street which led to the 700 Billion Dollar Bailout have industry experts relating that the next 3 quarters are in contract. Also, the "Bailout" known by the Government as TARP, i.e., "troubled asset relief program", will allow bad loans off the books of banks enabling them to make loans again.

Also, repayment terms of defaulted loans may be worked out. And, other stimulus programs are in the works.

With the economy going into a recession, it appears that the real estate industry may be somewhat recession free.