UCLA Anderson Forecast sees clouds in the horizon of U.S. economy for year 2007. Housing sector will cool off and that might put brakes on for the economy as a whole, because real estate and construction sectors feel the bite and could suffer job losses.
In their news briefing, UCLA Anderson Forecast does not give any indication on what might have caused the slowing of the housing market. I would claim that long-lasting housing boom has already enabled many people to acquire a house, which might lessen the housing demand. Another clear factor for market turn is the rise of interest rates. Money costs once again as well as houses, and together these factors form a vicious circle.
How this slowing affects log home market? Luckily log homes are still speciality products and life style arguments are very strong while considering log home purchasing. On the other hand, alternative housing price goes down and temptation to acquire normal housing also grows. It is hard to say what will be the overall effect. My guess (not even educated) is that log home demand will still remain stronger than overall housing demand.