Prices didn't escalate as quickly in Oregon as they did in places like California and they seem to be de-escalating more slowly. It is projected that prices in Salem will appreciate 6.5 percent in 2008 but Portland, Eugene and other cities in Oregon may see prices go down.

Coldwell Baker Mountain West realtor Robin Kuhn says she is optimistic about home sales this year.

"Our market has been so good for so long. People still want to buy a home and others still want to sell," Kuhn said.

She believes the subprime lending crisis was in many cases the result of bad judgment and poor choices when it came to adjustable rates.

"It sounds ridiculous that people didn't know this, but they didn't consider how much rates could go up and they anticipated that they could sell their homes before the rates went up."

Late in February, the Oregon House of Representatives narrowly passed a bill to bring reform to the subprime mortgage lending industry, including imposing an expiration date on prepayment penalties and requiring mortgage brokers to disclose all terms, fees and costs associated with the loans they are providing. The bill is expected to pass in the Senate.