Forecasting is not an exact science. Just ask any meteorologist. And those folks in the housing industry know only too well trying to predict what the market will do next year will be a challenge.

Some 600 local housing experts held court at the Oregon Convention Center for the Home Builders Association of Metro Portland's annual Housing Forecast for 2008.

Realtors, home builders and mortgage companies are all predicting a slow period through much of next year.

"We're down a little bit from '05 into '06, probably in the neighborhood of ten percent in terms of number of units sold, and then from '06-'07, probably another twelve or thirteen percent" said David Koch, a principal broker with Remax Equity Group.

KING file photo

A home goes up for sale.

But, Portland and the Northwest in general is a standout compared to the rest of the country. Koch says the number of people moving here from out of state is helping to keep the metro areas housing prices steady and appreciate levels on average five percent a year.

But, one industry area hit harder by the slow down is home builders.

Buena Vista homes announced a few weeks ago it would auction off more than 600 properties.

More: 230 new homes to be auctioned

At Renaissance Homes, owner Randy Sebastian said he is cutting back on the number of housing starts next year. He's also offering pricing incentives to move inventory.

"We're not putting as much inventory out on the market as we did in '06 and '07". said Sebastian.

Economist John Mitchell says it will take another year before the housing market makes a full recovery.

"Wait until 2009". He says the corrections being made now are actually a plus for the market.

"You're seeing the industry coming back to what we might say are more normal conditions," Mitchell said.