According to an article in the Seattle Times this weekend, Puget Sound has experienced an increase in residential vacancy rates in the last twelve months, moving  from 4 to 7.2%.  With an the increase in inventory the market has to adjust to the increased pressure to lower rents.  The article is a good one and suggests that rental rates may decline as much as 8%  in 2010 and that rental incentives are now on the table. 

Will this impact residential sales until it becomes less expensive to buy than to rent?