The Evergreen State’s economy is nowhere near as severe. Unemployment, construction slowdown and the stagnation of major businesses are stalling the market. Washington is home to industry leaders like Microsoft, Starbucks, Boeing, Weyerhaeuser, and Amazon.com but the recession has hit these corporate giants and brought a series of job cuts in cities.

This is a very different scenario in the state knowing that Washington used to have one of the strongest economies in the country. In 2007 however, higher costs in construction began hurting the state’s revenues. The real estate crisis has struck the state heavily last year and is expected to remain hurting the economy in 2009.

Seattle’s property boom spawned a home buying spree among investors who never had an inclination of the imminent debacle. After two years, home sales are taking a longer time to push through.

Some of Seattle’s real estate development projects have been called off due to the property crisis. Developers cannot recoup their expenses after credit markets have decided to raise their standards and left very few qualified borrowers to avail of mortgage loans. Particularly, condominiums in the area have high vacancy rates and left buyers side-lined during the year. RealtyOutlook.com forecasts a 14 percent drop in home values this year.

In Yakima, where apple farms abound in the area, the trend of home sales had an uptick until mortgage financing turned delinquent for majority of the homeowners. The alarming foreclosure rate is sending the entire market in a freefall. RealtyOutlook.com expects 11.5 percent in average home values.

Tacoma’s dire economy made waves for the real estate industry. Foreclosures make up the glut of available homes for sale. Prices need a heavy dose of recovery measures by stirring sales and cutting down home inventory. RealtyOutlook.com forecasts this year to be a tougher seller’s market as prices will deflate by 13 percent.

The national recession slammed into Bellingham as home sales started taking a nosedive in 2008. The high inventory of homes is attributed to the rising foreclosure cases in this city in Whatcom County. Unemployment remains severe as employers cut payroll jobs in retail and manufacturing. Home prices will be down by a staggering 13.5 percent.

The Spokane area took advantage of the Californian migration a few years ago. Comparable living standards but at cheaper costs have attracted people from other cities to settle in the Lilac City. However, the boom came to a close when the property crisis debilitated the market. Like other cities, home sales remain bleak and will cause prices to fall by 8 percent in 2009.

The Tri-City area is known for its lower cost of living. Buyers flocked the market during the area’s heydays and settled in single-family units. But financing became a difficulty among homeowners who were caught in distress by the layoffs. Home prices will drop by 9.5 percent this year as reflected by rising inventory.

The cities of Richland, Pasco and Kennewick in the southeastern part of the state are known for their agricultural, retail and food production centers. Businesses however are expected to resist the downturn this year given the steady demand from consumers in the area.