If I were to make a poll today about the state of the housing market, where would you be? Which side of the line? As foreclosure listings get larger and larger, every week a new market seems to drop. Whether south florida, Vegas or LA, there are a miriad of smaller towns that are the latest in the list. The hardest thing will be to predict if this downturn will have any legs and if it will affect in a serious way the economy in the coming quarters. Although expected, most tend to think the real estatet market wasn't a bubble of gigantic proportions, however, increases of 30+ percent a year were the norm and there is no doubt speculation became rampant. I personally expect a lot more unravelling and at some point in a year or so, a large drop in housing prices. You should do your homework and see where you are at and what precautions should be in place. Save for a rainy day.