Harvard University's Joint Center for Housing Studies predicts that the dip in home sales nationwide won't last long as strong household growth will fuel more housing demand.  Over the next decade, there will be at least 2 million more new households than were forned over the past ten years.

On the strength of this growth alone, housing production should set records, the report says.  Don't expect prices to plunge as a result of the current slowdown, either.  Markets are seeing neither big employment drops nor overbuilding in housing supply, the two conditions that precipitated price falls in the past.

Buyers and sellers should consider all these emerging trends as they position themselves for the best time to invest or to cash out of the real estate market.

As we move closer to 2008, the real estate market will continue to expand.  Keep in mind that everything related to the economy is cyclical and that real estate should be at the very top of everyone's investment goals.  As the old adage goes, timing is everything.