[BurbankKarl]

Time for the Euros to start cashing out as the dollar rises.

[onyx]

The bubble is starting to burst?

[.38sw]

Heard some folks talking about home sales in Glen Cove, one of the nicer subdivision in Vallejo, Ca. Homes there had been appreciating rapidly, when one went up for sale, it'd be snapped up in days, with multiple offers. Now, homes are staying on the market for 5-6 weeks. I'd say that things are slowing down. When tract homes in subdivisions are going for upwards of 3/4 of a million dollars, how can prices continue to climb at 25-30% a year, as they had been doing? Salaries aren't climbing to keep up with that pace.

[RckyRaCoCo]

Prices in the Inland Empire are still accelerating at a red-hot pace of more than 25% year over year

Wish they did that when I lived there back in the late 80's.

[jpl]

Prices in the Inland Empire are still accelerating at a red-hot pace of more than 25% year over year, while the rest of the region is showing definite signs of chilling out.

Of course, what the article doesn't mention is that it's a lot easier to go up at a high percentage when your baseline is a lot lower. And I'll bet the base price for homes in the Inland Empire is considerably lower than on the coast.

[Libertina]

05 Assessments here have reached as high as a 29% INCREASE! Sounds as if some people are trying to raise new revenue...

[2banana]

You know, even if housing prices remain flat (ie - no dip) ALOT of people are going to get hurt - they bought into housing they couldn't afford and now can not unload it for a nice gain - meanwhile they have to pay taxes, utilities and a mortgage on a house they can not afford to keep and will lose money (remember, it cost between 5%-10% of the value of a house to sell it)... And the kicker? The majority of loans today are "interest only" loans - ie - nothing goes toward your equity...

[GOP_1900AD]

They say that when something regarding financial trends appears on the cover of that rag Time Magazine, then watch out. Well, the real estate froth was a recent topic. We're about due for state wide correction. Of course, with the lack of easily buildable flat land, as with all such corrections, it will only be temporary and the highly atypical (versus the rest of the US) California real estate appreciation dynamic will kick back in. It will never cease being a relatively scarce commodity.

[goldstategop]

No body's selling. I live in a Prop 13 "grandfathered" home. Now if I sold, I could over half a million today for it but it makes no sense taking out a mortgage on a new place that would saddle me with triple the property taxes I pay now. In this overheated real estate market, it should be a seller's dream but my profits would be wiped out by the costs of a new home.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)