Houston may be one of the first cities to show an increase in condo values in the post foreclosure market. The National Association of Realtors reports the city’s condo prices jumped 8.1 percent in the 3rd quarter, above the same time a year earlier. Meanwhile, Houston Mayor Bill White is optimistic about the region’s growth for the future.

Nevertheless, the prices may be short-lived. Having lead the nation in job growth over the last five years (380,000 jobs), White alluded to predictions by economic forecasters that there will be "a sharp drop" in the U.S. national income in 2009, in an article for the Houston Business Journal in January. "Most businesses have experienced slowdown, particularly in the last three months, and it will get worse," he said. "And yes, the problems will affect all of us in this region." However, he added, Houston had shown it was able to overcome obstacles such as Hurricane Ike with "a tighter community," and, if the city could do that, then it will be able to "weather the economic storm" as well.

Local economists and government leaders are expecting a drop in the Houston economy, that has defied national trends over the last few years.

"The Houston economy has been slowing all year, following trends in the U.S. economy, but with a cushion from strength in global oil markets. In October, for example, the unemployment rate was 6.5 percent in the U.S. versus 5.7 percent in Houston," according to the Federal Reserve Bank of Dallas’ latest economic update. "But with the U.S. economy sliding into recession, Houston suddenly finds its safety net shrinking."