We have a triple whammy as we enter the new year. New tax rules with more limited itemized deductions, a Government shutdown, and rising interest rates. Historically, when rates rise real estate prices go down or stagnate, when the Tax Act of 1986 was passed and took full effect with the loss of subsidies for investment in real estate, real estate prices plummeted. This could get ugly. The moral is this. If you want to buy real estate, it might be a good time to wait for prices to drop a little (especially if we have a drawn out government shutdown in the DC area). This of course has to be balanced with the risk that interest rates may rise further. So, be careful out there. Oh, and have a Merry Christmas and remember to celebrate Christ’s birth as the reason for the season.