I still think the answer depends on where you are ......I think the economic factors of an area are your answer....our market is stable......some are growing .......some are having their own version of a slump......real estate is local.......economic predictions that they are overwise doesnt work....

Lets all agree that real estate is a local market.. sometimes from neighborhood to neighborhood in a city.  The media has harped enough on the "crashing" aspect of the housing market and I think the media has added to the buyers not buying, creating more of a crashing aspect.  Fueling the fires so to speak.

Eric, it all depends on what part of the country you are in.  Too many people are taking averages from around the nation and making pronouncements that do not fit the vast majority of local markets.  I think this is going to give real estate professionals an opportunity to be of real service to buyers and sellers at the local level - and even in a given area, there are differences among specific neighborhoods.

Julie -- Well the western part of the United States seems to be in better shape, at least as far as new home sales are concerned.  I agree that real estate is local, but it is these national reports and trends that will shape political and economic policy in the months and years to come.

Gail -- Moody's is a pretty credible and powerful source.  Is this merely a media problem or is it a national perception that comes from the financial sector?

Pat -- I was surprised to see the Midwest at the bottom of the pack in new home sales.  We haven't experienced the overbuilding and huge speculation in second homes that you see in Florida or Arizona. 

Again, I agree with the statement that real estate is local.  But I'm troubled to see the financial sector stepping in and pronouncing the patient dead on arrival here.  This isn't mere media hype.  The opinion of Moody's Chief Economist carries a lot of weight.  But on the other hand, I don't care for his use of the word "crash".

I think he is an idiot. At best you can say that certain areas of the country have major issues. But freefall...that is just stupid.

Jeff & Mona -- Yes, it was pretty blunt and damaging for Zandi to use the terms "free fall" or "crash".  Those comments strike me as sensationalism that is designed to grab headlines.

Economics and common sense. Numbers tell the story but savvy business persons will prevail in any market and any industry.