But in El Paso, real estate experts said things couldn't be any better.

"There are factors in place in El Paso that have never existed," Dan Olivas, president of the Greater El Paso Board of Realtors, said.

Olivas said while homes in El Paso aren't selling as quickly as they did about a year ago, the influx of soldiers with the BRAC, the brand-new Texas Tech Medical School, and the the soon-to-be-built children's hospital are all reasons why El Paso's housing market has not been hit hard like other cities.

Economists said the decline in national home prices could hurt the broader economy by leading to more foreclosures, as homeowners have more trouble refinancing mortgages. But the drop in prices could also help the housing market actually right itself sooner, by removing empty homes from the market.

"We will survive. I think it will rebound, and it will rebound very quickly," Central El Paso resident Nick Quinn said.