Few economists are predicting a major correction in real estate prices, with long-term rates remaining low, demand outstripping home supply in most areas and continued growth in jobs and incomes.

Quoted in a Reuter news article, Mark Vitner, senior economist at Wachovia Bank was saying: "If anything, we're probably going to see sales level off a bit, see supply catch up with demand and a little bit less appreciation in the next few years, but still appreciation,"

Economy.com's government consulting manager, Mark McMullen, said valuations may not fall in hot California markets, but the number of transactions, particularly among speculators, will drop off, reducing local transaction fee revenues.

Full article through Yahoo .