Will the fiscal cliff effect real estate? Absolutely! The last time we faced this fiscal cliff the bond rating of the US government was lowered which sent the stock market tumbling. If there is no resolution treasury rates will go up and eventually so will mortgage interest rates.
Short sales are up because the Mortgage Debt Forgiveness Act sunsets this year; will they extend the act? I think they will extend the act but it hasn’t happened yet. Most people who qualify for a short sale are still covered by the insolvency exception and anyone considering a short sale needs to talk with their tax professional. For more information check out Portland Short Sale Info