Over time, all real estate appreciates. There are a number of 'experts' who are forecasting increasing property values through the end of 2013 and beyond. In fact, Forbes Magazine says the Seattle real estate market will continue to improve through at least 2017. Of course, those forecasts are contingent upon things like Wall Street's good (or bad) behavior and a new war in a foreign country, and interest rates. Remember this, 70% of the U.S. economy is driven by spending. Consumers spend when they feel confident. So long as consumers feel confident about the future, they'll spend money. The local real estate market is among the top five in the nation. Unemployment is low here. Seattle is poised for growth. The local real estate market should continue to improve.....but there are no guarantees.