Although the housing bubble hasn't hit our area, won't the upcoming seizing up of the credit market still hurt housing prices?

The above question was posed to me from a reader of my blog. The credit market crunch that is hitting across the nation will have some effect on our area. Buyers with questionable credit scores may find it more difficult to get a loan. Also, certain loan programs may take longer and borrowers may be scrutinized more. This could lead to less qualified buyers, but I do not think it will have a major effect on our local market. Interest rates are fluctuating daily, but still remain low. It is becoming harder and harder to predict the real estate market. With the falling dollar, turmoil in the middle east, and problems in the mortgage industry, things may get worse before getting better. The good thing about our local market is that it seems to not significantly increase or decrease yearly. It seems to remain steady. As long as our area does not experience major layoffs or a major exodus of the population in the next 12 months, we should continue to see a stable market.