I was at a conference today called Forecast 2008. It was a conference on where the market is headed in the next year. One of the speakers was Dr. Gaines, who was quoted in that article in the DMN and we also had Dr. Berson, VP and Chief Economist for Fannie Mae.
Although the outlook for the national market looks pretty grim in a lot of state, the local market is holding steady. They say that prices and appreciation peaked in 2006 so this year is down because we are readjusting to what has been the norm in TX for the past several years. They speculate that we will have around a 3% appreciation rate in 2008. However, things are moving slower and the inventory is 6.5 months for existing homes and a little more for existing condos.