Kelley Bennett writes at the Voice of San Diego.org. "There are neat charts of data. There are historic accounts and industry predictions. And then there's emotion. That psychology is what many real estate analysts consider the 'x-factor,' the part of the market that can't be logically graphed and analyzed. It's hard to predict what people will do especially in a market that finds itself in unparalleled uncertainty."

"James Hughes, at Rutgers University, said the psychological and emotional factors involved in real estate have gone in cycles, depending on whether the market was up or down. But the psychology is always there. 'We used to call recessions 'panics,' he said. 'We didn't have a fancy word to describe them. The switch goes from greed to fear to greed to fear.'"

"And, with as much media focus on the real estate market as ever, experts say psychology will continue to play a role going forward. 'It feels like a bigger thing than it really is,' said local real estate analyst Gary London said. 'Now the question is, 'How long and how deep?' We're no longer asking ourselves, 'Is the market down?', we're now asking ourselves, 'How down, and for how long?'"

"But it takes more than one person getting greedy or scared to turn the entire market. Herd mentality, even when rooted in economic reality, forms the foundation for most dramatic market shifts. And now, homebuyers are a lot more cautious about getting on the train, said Alan Gin, professor of economics at the University of San Diego."

"'It could conceivably work in the other direction,' he said. 'Buyers keep hearing this talk about a bubble, about housing prices slowing. Buyers might just decide that they're going to wait, possibly make lowball offers.'"

"'People are swapping worst-case scenarios at cocktail parties,' London said. 'That's bound to add to the psychological cloud.'"

"Norm Bour has been in real estate for 25 years and he said he hears from sellers all the time who can't seem to sell their homes. 'I tell them, 'It doesn't matter how much you paid for it, you just need to take a loss, lick your wounds and move on with your life,' he said. 'They need to realize that their house is not going to sell for more than the most recent comparable sale.'"

From the Daily Bulletin. "The CAR has changed its (affordability) methodology because of changes in the mortgage finance landscape. The new report assesses affordability only for first-time buyers, and says 23 percent of first-timers can afford a median-priced home in the state. That's better than the 14 percent overall affordability in CAR's final index under the old methodology."

"But some are questioning whether the new index actually says very much. 'This new report looks like they're jockeying the numbers,' said Bill Velto, manager of Tarbell Realtors in Upland. 'They're basing it on a 10 percent down payment, and close to 80 percent of first-time buyers are going the 100 percent financing route.'"

"The study assumes an adjustable interest rate of 6.48 percent and a 10 percent down payment, leaving buyers with an income requirement of $98,700 and a monthly payment (including taxes and insurance) of $3,290. 'That's a ridiculous number,' Velto said. 'Very few first-time buyers can afford $3,290 a month.'"

"Some of those who thought they could apparently can't. Foreclosures jumped by 48 percent in San Bernardino County."

"Regional economist Jack Kyser of the L.A. County Economic Development Corp. said both reports indicated a softening in the housing market. 'Affordability of 23 percent is not terrible for first-time buyers, and the numbers are better inland,' he said. 'The real question is what will happen in both these areas as prices come down some.'"

"'A lot of people got into the market with adjustable-rate mortgages,' Kyser said. 'They jumped to get in because they thought prices would keep climbing to the sky. Now whether they can stay in depends on their financial strength. I think there's going to be some suffering in the next year or two.'"