Forbes magazine ranked Austin, Texas, #3 in its Best Cities for Jobs in 2008 and that makes Austin a great target area for real estate. The Texas state capital city came in #1 for income growth in the Forbes list and #2 for job growth. When you consider that houses are where the jobs go at night, then Austin homeowners are sure to rest well, knowing they're in a good spot for equity growth.

While the number of houses sold in December dropped 16 percent compared to a year earlier, the Austin American Statesman reports the average price buyers paid was up 8 percent at $191,000. While sales volume is expected to cool in the city, Austin's job market keeps growing, creating greater demand for homes in great condition and priced right.

Price growth hasn't stopped through the last three years. In 2004, the average single family home sold in Austin was at $154,700. The latest report from the National Association of Realtors shows the same house at $188,200 for the end of the third quarter 2007 -- a gain of more than 21 percent.

While the rest of the country's pricing leveled and dipped last year, homeowners' equity growth continued upward throughout the last 12 months. Meanwhile, while Economy.com forecasts prices to level and dip for the citizens of Austin by about 4 percent in the next several months, job growth will put pressure on the inventory, creating a high level of demand on the dwindling supply.

What's keeping the market insulated from a bubble-like implosion is job growth. The Texas Workforce Commission released job expansion figures indicating the Austin region added 29,500 new jobs during the 12 months ending September 2007 -- a 4 percent gain in employment during the past year.