The Register-Guard reports that even the Oregon housing market is coming back to Earth. "Happy days aren't exactly here again, but projected solid job growth and a slowing, but still strong, housing market should keep the local and state economies rolling along this year, according to a five-member board of economists."

"The biggest change from last year is an expected slowdown in the housing market. Double-digit percent gains in housing permits in Lane County and Oregon last year surprised the board, which had predicted that rising interest rates would dampen activity. 'I think we've been building more houses than we need,' said Bill Conerly, an economics consultant based in Lake Oswego."

"With low mortgage rates, buyers 'jumped the gun a bit,' he said. They were able to move out of apartments and into homes earlier than they otherwise would have, Conerly said. 'If you've been borrowing from the future, it's hard to sustain those same levels of sales,' he said."

"Conerly predicts a 1-in-10 possibility of a panic in the national housing market by buyers who got in over their heads. Instead of 'people feeling that their house is a great investment, it becomes an albatross pulling them down,' he said."

"But a slight drop from last year's stellar levels still makes for a decent housing market this year, the board said. 'Instead of being at the edges of the solar system, we've come back to the atmosphere,' Potiowsky said."