Even television stations in California are reporting on the housing bubble. Palm Springs, "The Valley's real estate market is cooling off. Depending on who you listen to, it's already in the deep freeze. That's bad news for people trying to sell their homes. It may be good news for people who've had trouble buying."

"While valley home prices have gone up, there are still over 7,000 homes on the market right now. That's about 4,000 more than last year. And homes that sold in 58 days just a year ago are now taking more than two months to sell."

"At least one local realtor says many people believe they can't afford to live here, when they really can. 'If they would really look into the financing options available, including 100% financing programs, they might find that they do have an opportunity to buy.'"

"So if you're still looking to buy a home, but can't afford it Coldwell Banker tells us you might have to move further away from the center of the desert to find something cheaper."

And from Fresno. "The Valley housing boom is over, with home prices in some neighborhoods dropping $50,000 in just the past two months. When Action News broke down the numbers, we found that in the past couple months, the bubble appears to be bursting. To realtors, it's a market adjustment. But to some analysts, it's a full-on correction."

"Local housing prices have come tumbling down over the last two months, erasing months of drastic increases. Just two months ago, the median sale price for homes in Clovis' 93611 zip code was $439,000. But in just 60 days, those homes plummeted $51,000, to $388,000."

"Over the same time frame, Fresno homes were unchanged, while homes in Merced lost a little more than $4,000 in value. The correction hurts worst for people who flip homes, buying them and selling them again within a matter of months. 'You can drive through any brand new subdivision. You will see just as many for sale signs and for rent signs as you see people living in the homes,' said Joan Jolly, from the Fresno Association of Realtors."

"Realtors say the adjustment is great news for buyers, who are all of the sudden paying a lot less for the same homes. Sanger homes are in the top 10 in the entire state for appreciation over the last year. They're up 54%. But for the last two months, they've been on the way down too, by almost $17,000."