Downturn, what downturn?

By Melinda Fulmer, MSN Real Estate

Of course, in some parts of the country, there's no real reason to get cold feet about buying. Prices have ticked up slowly and are expected to continue that slow march for the foreseeable future. "We have not seen a downturn in our market," says Marianne Ackerman, of The Property Shop in Glenwood Springs, Colo.

Indeed, prices in this small community outside Aspen have been nudging up 5% a year unchecked for several years, thanks to a shortage of property suitable for development and a booming tourism market.
This appreciation prompted longtime Glenwood Springs resident Marianne Virgili -- who also heads the town's chamber of commerce -- to buy a parcel of land now, without the slightest bit of hesitation. "Prices are rising, so the best time to get in is now," Virgili says. She plans to start building a home on her lot in the spring.
Other markets that experienced healthy price increases in the latest quarterly sales data from the National Association of Realtors are Farmington, N.M.; Reading and Pittsburgh, Pa.; Columbia, S.C.; San Jose, Calif.; and Fargo and Bismarck, N.D.
"Just like the weather, there are large local variations in home prices," says Lawrence Yun, NAR chief economist. Yun says that in his examination of last quarter's metro home prices, two-thirds of the markets posted price increases.
Realtor Tom Rhodes in Dallas says that he has seen sales slow a bit, but that prices in his market haven't dropped as they have elsewhere. "Some people read what's going on around the country and say maybe this is not the best time to buy," he says. But, "we've got a pretty strong market. Those headlines are coming out of Miami and Las Vegas."
There are plenty of markets in Texas, Kansas, Arkansas and the Midwest that are now starting to tick up. In these areas, this might be a great time to buy, with interest rates historically low, a fairly large inventory of properties to choose from and less chance of getting caught up in a bidding war, analysts say.