Some housing bubble news from California. "Humboldt County home prices have remained essentially flat since August, while average interest rates have climbed to 6.35 percent, increasing the average monthly mortgage payment from $1,851 six months ago to $1,936 in January for an equivalently priced home."

"According to the Humboldt Association of Realtors, the median home price in the county in January, the most recent month for which figures are available, was just under $320,000, up from $270,00 a year ago and down from $339,000 in December."

"The affordability index countywide continued to hover near 12 percent, meaning that only 12 out of every 100 households could afford to purchase a median-priced home. The numbers are 'pitiful,' according to realtor Jeff Katz. 'You would expect to find low home-ownership rates like this in Southern California or the Bay Area where home prices are double what they are here,' he said, but he called the local numbers 'pretty sorry.'"

"Michael Monaghan, realtor associate in Arcata, said he thinks the local market might be 'a little ahead of itself.' Sellers in some areas, he said, are asking too much for their properties. 'They don’t understand that it’s becoming a little more of a buyers’ market,' Monaghan said."

"Building permits for Victor Valley homes were at a two-year low in January. Home builders say they aren't scaling back building, despite reports of a 32 percent drop in year-over-year home sales and a 110 percent higher inventory of existing homes from last year. But even builders acknowledge they could be signs of a much-needed market adjustment."

"'I think what had been described as the feeding frenzy is over,' said Mike Dwight at Frontier Homes. Dwight says investors are probably exiting the market, allowing buyer-users to find a more affordable home. (Homebuilderz) Joseph Brady said the market is tipping toward the buyer and that builders will begin offering incentives and would also begin contracting with local real estate agents rather . 'It's just part of the cycle,' he said. 'They've been doing it for years. When the automotive industry has a lot of cars on their lot, they're more willing to give incentives.'"

"San Diego County home prices bounced back above $500,000 in February, but sales continued to slow as rising interest rates put pressure on buyers stretching to get into their first home. DataQuick reported yesterday that the median sales price last month was $502,000, up $12,000 from January and 6.4 percent higher than a year ago."

"The latest figure represented a partial turnaround from a sharp drop in January, when the median price tumbled by $26,000 or 5 percent. Amid the gain in overall prices, the volume of sales in February declined for the 20th straight month, logging 2,865 transactions, down 16.8 percent from a year earlier."

"The San Diego Association of Realtors said unsold listings stand at their highest level in eight years of record keeping."

"DataQuick analyst John Karevoll said San Diego home buyers have already backed off from their use of ARMs. In November 2004 about 83 percent of buyers in San Diego County chose adjustable-rate mortgages. That marked the peak in a database that goes back to 1988, he said. By November 2005 the figure had dropped to about 73 percent. In January, the most recent month tallied, about 54 percent of buyers used adjustables in their purchases."

"Mortgage broker Ed Smith, Jr. in San Diego said a 'guidance' issued to lenders in late 2005 by federal regulators helped reduce the use of some of the riskier adjustable products, such as option or flex-payment ARMs. Those products allow the borrower to decide how much to pay each month. With sales and home-appreciation rates slowing, 'you have to be more prudent in who you make these loans to, if at all,' Smith said."

"Jim Scott in Mission Hills said most of his clients have dug in their heels and are resisting his recommendation to lower their asking prices by 5 percent or 6 percent after a month of no offers."

"Scott's base ZIP code, 92103, encompassing Mission Hills, Hillcrest and Bankers Hill, is a case in point. It was one of eight ZIP codes in the county where median home prices dropped by more than 10 percent in February from year-ago levels. The median last year was $975,000 on 10 single-family resale houses and last month, $715,000 on 13 transactions."

"Charles Jolly, president of the San Diego Association of Realtors, said he detects only one area where a real estate bubble of overheated prices may pop: downtown San Diego. There were 616 resale condominiums on the market as of yesterday, perhaps a record level."

"Gary Kent, who operates in La Jolla, said those who bought condos in the last two years will have a hard time selling their homes for as much as they paid. 'They're ready to move up and the value of their condo hasn't moved up,' he said. Kent said condo buyers might be wise to jump in now while the market is slow. 'The idea is contrarian investing: The best time to buy is when there are not a lot of people buying, which is now,' he said."