The Journal continues to be an excellent resource reporting on the conditions of the real estate market in various cities throughout the country.  On July 5th, they published an interview with G. Kenneth Heebner, who manages the $1.2 billion CGM Realty Fund (this may require a subscription to read the article.  If you can’t access it, e-mail me and I will get it to you). Mr. Heebner discusses the challenges many markets will face in the near future, however, he says “most people won’t have problems and much of the country will be fine.  I don’t think anything will go wrong in places like Texas, Iowa City, or Minneapolis.”

The slowdown in real estate will have the biggest impact on the markets that have seen the biggest rises in appreciation during the past 5 years.  While housing in the Twin Cities has seen good appreciation, it does not compare to that of the East Coast, Florida, Arizona or parts of the West Coast.  For a historical look at Twin Cities housing apprecation see here.