Like Alecia Barnes, a real estate broker in Albany, Oregon, I believe that 2008 is going to be great. Well, here in Jackson County, Southern Oregon, the residents of Ashland - Talent - Phoenix - Jacksonville - Ruch - Medford - Central Point - White City - Eagle Point - Shady Cove - Gold Hill - Rogue River are doing okay. The market slow down has driven many property owners to reconsider their "profit taking sales". Those property owners that must sell, with proper preparation and pricing, are doing so.

(Go to http://www.jacstats.com/ for additional information)

Yes, sales of residential housing will likely remain slower than previous years. Yes, the mortgage industry is still reporting the affects of actions taken on "Subprime" and "Alt A" loans. Like Nissan cutting 15% of the weight of its vehicles in order to increase their mileage rating, and Centro selling 700 U.S. shopping malls due to impending debt payment deadlines they are finding it difficult to meet, the real estate and mortgage industry is seeing some of its "dead weight" being cut and adjustments necessary to operate in today's market environment are being made.

So where do we go from here?

I say, we stick to the basics. Home buyers always make sure that the home they are purchasing is within their means, making sure they are getting the right deal for the home they are purchasing while working with a qualified, ethical team of professionals toward this goal. Investors make sure the property they are purchasing pencils out - that in addition to the rate of return on their investment they take in to consideration the costs associated with a long-term investment including any interest rate adjustments for their financing, or if a short-term investment, they factor in rising material and/or labor costs associated with renovations they plan to make to the property before putting it back on the market.

Prices are back in line with incomes for our area. Interest rates on conventional fixed rate loans are back under 6% for most borrowers. Qualifying First Time Home Buyers and Oregon Vets qualifying for the State programs (Oregon Bond Loan and ORVET State Home Loan) are still seeing 5.125% on those 30 year fixed rate programs and down payment assistance programs are still available.

Is the sky falling? I think not.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - http://www.quality4loans.com/