Some housing bubble reports from the Fresno Bee. "Fresno's soaring housing prices, which outpaced the rest of the nation over the last five years, are floating back to Earth. The number of homes for sale in Fresno and Clovis has more than tripled since May 2005 and the number of transactions is down 24% from a year ago. That puts a lid on price hikes, real estate agents say, and means that sellers cannot set unrealistic objectives."

"'They have to put the 'real' back in real estate,' said Joan Jolly, president of the Fresno Association of Realtors."

"Meanwhile, sales activity has slowed so much that some lenders are ordering a second appraisal near the end of the transaction process, especially on 100% or other risky loans, said (realtor) Anthony Gamber. 'There is more caution in the air,' he said."

"The Fresno-Clovis area, with nearly 5,000 housing starts, was among the state's leading growth regions in 2005, according to figures from a trade association. Only San Diego, Bakersfield, Riverside County and Los Angeles ranked higher, according to statistics from the California Building Industry Association."

"However, this year promises to bring a much-needed lull. 'It's a slower market with too much supply and prices too high,' said Steve Lutton, division president of Lennar Homes."

"'Housing starts are off and cancellations are up,' added Mitch Covington, this year's president of the Building Industry Association of the San Joaquin Valley. 'In 2005, developers in Fresno were handed 2,247 permits for single-family homes. In Clovis, 1,310 single-family home permits were approved. Add permits for 1,147 apartment units in Fresno and 184 units in Clovis, and the region had a building boom that was unprecedented in volume."

"In fact, Fresno officials had a record year, issuing 10,210 permits for new construction, alterations and remodeling worth $773.5 million. That number was a 68% increase from 2001, said Nick Yovino, the city's development director. 'In the past, when the application volume has leveled off that has translated into a reduction of building activity,' he said."

"A cooling is what the market needed, Covington said. Prices skyrocketed over the past few years and could have climbed beyond people's ability to pay. 'The market could not have kept going up,' he said. 'It would have put us out of business.'"

"This year, builders are back to constructing houses for expanding families and changing households. Investors are in short supply, and a sluggish resale market is keeping many others on the sidelines. As a result, some national builders are paring down their land holdings and selling excess lots."

"The San Joaquin Valley was in the middle of the fray. Bakersfield ranked second in home construction, with permits for a record 5,218 single-family houses. 'We have a lot of new builders in town,' said Stan Grady, development services director in Bakersfield. 'And their style of building is different. It is more production-style housing. They build in groups and may pull 20 to 30 permits at once.'"

"But what a ride it was in 2005. California produced about 10% of the nation's new housing, an estimated 208,804 houses, apartments and condominiums. And that number marked a decrease from 2004, the California Building Industry Association said."