"So far so good," Rickard said. "We've managed to avoid some of the declines we're seeing elsewhere." In fact, housing prices in Montana are actually appreciating, but there is a bit of bad news. The number of homes sold in Montana cut in half between 2007 and 2009.

Veteran realtor Laura Odegaard said most of those troubles are in Bozeman and Kalispell where families were purchasing second homes. "I see that we're in a normal market," she said. "Billings seems to be cushioned for the rest of the state."

The main employers in The Magic City area are the hospitals and the refineries. Since they are doing well financially, so is the Billings housing market. "We don't have reason to be fear based in Billings," Odegaard said. "We don't have big industry moving out."

She added that it may actually be safer to invest your money in a home rather than the stock market. "If you're wanting to buy a house, now's the time," she said. "That 4.5% rate, will we ever see that again? My crystal ball says, 'no.'"

Both Rickard and Odegaard said sellers may be pleasantly surprised when they put their homes on the market. "The cleaner, best condition and priced right homes will sell," Odegaard said.

"If your home does sell, you're not going to see it sell for less in the coming year than you did in the previous year," Rickard said. A national online real estate research firm predicts Billings, Bozeman, Great Falls, Livingston, and Missoula will be among the top 25 U.S. housing markets in 2009.