Of all parameters, the home price correlates best to unemployment rate in the area. In other words, people are buying or selling whether mortgage rate was 16% or 3%.  

Jobs are at the top of the must have list.

In our area, it is jobs.

To parphrase James Carville -- it's jobs.       

Joe,

We bought our first home with an interest rate of 13%, (gasp).  Jobs, jobs, and more jobs.  The second quarter of the economy will not see rise in interest rates, my expert tells me.  We have been waiting for 3 years for that to happen...Inflation is still low.  A

The Northern Virginia (Wash, DC) area usually has fairly strong employment. Interest rates and the emotion regarding the econamy in general tends to be the driving force.

Hands down,  jobs.  Look at the double digit interest rates of the past...houses still continued to be bought and sold.  And when I say jobs, I don't mean the unemployment rate, which is smoke and mirrors.  

It ALWAYS about employment.

And with each new trade agreement, the 'jobs' go somewhere else.

Payroll taxes it the magic that makes everything work.

I would vote for jobs; however I think jobs, interest rates and rate of appreciation all have an effect on the market.

I am sure it is the jobs. I have seen rates as  high as 9%.

jobs without a doubt....

In all 3 of my markets (senior, luxury, vacation) it's lifestyle.

Jobs without a doubt.  Even when recent housing prices and interest rates at all time lows the buyers were sparse because of poor economy.  Does not matter how inexpensive the home is or how small the payment, without a paycheck one is still not able to make the mortgage payment.  Mark

I don't know for sure, Joe.  Though, judging the present market, I think that jobs with well paying wages would make a more positive effect on the market.

Both are important but the jobs must be there.