When it comes to the economy -- the worst may not be over yet. That's the forecast delivered Monday by the Real Estate Center at Texas A&M University.

So far, Austin has managed to dodge the downturn that has hit the rest of the nation, but now Economist Mark Dotzour says the area is no longer immune.

"What we're anticipating in Austin is a slowdown in job growth maybe to about 1.1 percent here in Austin in the next 12 months", Dotzour said.

Dr. Dotzour delivered his economic forecast Monday before a sold-out crowd of the Real Estate Council luncheon at the Hilton Hotel in downtown Austin. He says, due to national politics, most businesses are delaying expansion plans until the spring.

"What we're also finding is there's kind of a 'wait and see' attitude among business people out in front of the presidential election. There's a lot of uncertainty about the future of business owners," he said.

Regardless of who is elected president, Dotzour says businesses are waiting for new rules to be set by Congress and the Federal Reserve. From now until the spring, Dotzour predicts fewer new jobs will be created, new homes, high-rise living and retail space will all decline and foreclosures and banking uncertainties will continue.

But Dotzour says there is good news on the horizon. "We're expecting to see kind of a turn around in the spring and summer of next year as the political uncertainties resolve. These mortgage problems will start to go away," he said.

Dotzour told the assembled crowd to prepare for a long and gloomy winter.

"The best thing we can say right now is just hunker down and survive until next spring," he said.