The Sacramento Bee has an update from California. "Nearly one in every 10 homes, apartments and condominiums started last year in California rose in the Sacramento area, led by Sacramento's Natomas area, the cities of Lincoln and Elk Grove, and unincorporated Yuba County, according to the California Building Industry Association."

"In fact, builders in California produced 10 percent of the nation's housing, the CBIA said."

"'Twenty thousand permits is a very good number for the region, even though they trailed off some in the last quarter,' said John Orr, CEO of CBIA's Roseville affiliate."

"The number is expected to drop by at least 2,000 homes this year in the six-county region, Orr said. Area builders are scaling back amid a glut of existing homes for sale and rising interest rates, among other reasons."

"Roseville-based homebuilder consultant John Schleimer said builders have begun backing out of land deals just as buyers are backing out of new homes. 'I don't know of a major homebuilder who is not in renegotiations or didn't walk away from lots in the last three months,' said Schleimer."

From the Napa Valley Register. "Napa County's housing market seems to be slowing down, with fewer sales and a slight drop in the value of the median priced home, new statistics reveal. The median sale price decreased 5 percent between March and April to $609,000, while the number of units sold plunged 39 percent, according to DataQuick."

"DataQuick reports the 'typical' Bay Area buyer has an eye popping $3,048 per month mortgage payment. That tops March's $2,948 figure and the $2,659 payment reported in April 2005. Not only are homeowners taking on higher monthly payments, the days of hosting a 'mortgage burning party' seem to be dwindling, said Silvas."

"Different generations have different home ownership goals, she added. 'I don't think most buyers today are looking at that as a goal,' said (realtor) Jill Silvas of Morgan Lane."