I get emails from the Real Estate Center at Texas A&M whenever anything newsworthy about real estate comes out.  I received one today talking about how homes prices in Texas are likely to hold up rather than decline.

Reasons given for this include the fact that Texas housing costs are lower than the national average, Texas having a lower overall cost of living than much of the country, job growth being stronger than most other states and the lack of a large price increase in a short time like other states experienced.