Steven Kleiman

Luxury homes in Houston's Inner Loop (IH-610) should hold their prices in 2008, but risk of falling values, according to a study, is possible in 2009. The mortgage meltdown, uneasy stock markets, unsettled economy and declining prime interest rate are all radically reshaping the way brokers and their clients will market expensive homes, condos and lots. Home prices will increase at only 5% over the next two years, with buyers wanting upscale locations close to their places of work, as well as "suburbs in the city - and more of them narrowing their choices online first. Sellers will have to sharpen their pencils and their properties - from the curb and landscape to the interior and highly organized storage spaces. Those who venture into tear-downs or property flipping will have to proceed with caution.