The Signal reports from California. "The housing market may be either 'back to normal' or 'depressed,' but one thing is for certain, it's not what it used to be. 'I've been in real estate for 20 years, and I've seen changes in the market,' said real estate agent Margo Sherwood, adding that the market has been stagnating locally."

"Jack Kyser, chief economist for the Los Angeles Economic Development Corp., said that the market is shifting to a very strange dynamic, especially with people who were trying to 'flip' properties, and those who were paired with mortgages or homes that were wrong for them."

"'A lot of people are quite nervous,' he said."

"Realtor Linda Slocum said that the market during the three years previous to the crash was abnormal. 'It was a frantic three years, and then it went back to normal,' she said."

"Kyser disagrees, saying that although there was a dramatic increase in the housing market close to a frenzy, it went too far on the other side of the spectrum. 'It's like you were out on a binge, you're waking up the next morning and you have a very bad hangover,' he said."

"The problem with the current market is that the supply is up, without the demand for the homes, and without as many buyers, many of whom are unable to afford housing due to the tightening of conditions by lenders. This is partially due to the foreclosure crisis."

"Slocum said there have been concerns when people refinance their homes or take out another loan and don't use it for their homes but rather for 'play money.' 'It's not all people who got into bad loans,' she said of foreclosures, although she added that Los Angeles County's biggest concern regarding foreclosures is in Palmdale."

"In addition, builder confidence hasn't been strong. 'They are selling, but they aren't selling at the rate they were,' Slocum said."

"Although not much activity is expected in 2008 or 2009, 2010 might be the year that things bounce back. Slocum said she receives calls at her office, saying that people don't want to buy a home because 'the market's going to crash.'"

The Contra Costa Times. "The meltdown of the subprime lending arena has imperiled hundreds of East Bay jobs. For the moment, though, subprime lending woes have triggered the loss of at least 250 jobs in the East Bay and dozens in the South Bay, multiple sources said Thursday."

"Companies in the troubled sector moved to limit further exposure. 'Once Fremont decided to exit the subprime business, they immediately stopped making new loans,' said Daniel Hilley, a Fremont General spokesman."

"'We have only started to scratch the surface of the subprime problems,' said Jon Haveman, a principal with a research firm that tracks regional economies in California. 'That will lead to some job losses. There is a potential that this problem will ripple out into the broader economy."'

"Some of those difficulties will jolt the Bay Area economy, he warned. 'The Bay Area is susceptible to a downturn in employment due to the subprime market going belly up,' Haveman said. 'But it will not happen in the Bay Area to the extent we will see in Southern California.'"

"A building industry economist warned that the housing industry's problems have yet to run their course. 'I don't see much of a recovery in store this year,' said Alan Nevin, chief economist with the California Building Industry Association. 'Home building will continue to struggle.'"

"Brookfield Homes Corporation today announced net income before taxes for the three months ended March 31, 2007 was $5 million, compared to $31 million in 2005. The decrease is a result of fewer home and lot sales, and a decrease in the gross margin earned on housing to 20% from 31% for the same period in 2006."

"The decrease in housing revenue is primarily due to fewer home closings during the quarter in the San Diego and Washington D.C. Area markets."

"'Market conditions remain challenging, and demand has weakened in recent weeks as a result of mortgage illiquidity in the marketplace. Yet our housing margins remain above industry average,' concluded CEO Ian Cockwell."

"Our portfolio includes 27,000 lots owned and controlled in the Northern California; Southland/Los Angeles; San Diego/Riverside; Sacramento; and Washington D.C. Area markets."

The Sacramento Bee. "Next to the US Bank Tower, Denver developer Craig Nassi hopes to build Aura, a 39-story luxury condominium tower that will cost about $177 million."

"But Nassi has yet to break ground because he hasn't purchased the land from local developer David Taylor. Last month, Nassi's deadline passed to line up financing."

"Three blocks west, all is quiet where John Saca's $550 million Towers project is planned between Third and Fourth streets. The foundation work on the ambitious 53-story, twin tower, hotel-retail-condo complex abruptly stopped last fall."

"To close the deal, he must come up with about $25 million by May 25 to reimburse the state pension fund for what has been spent. The Sacramento-based developer also needs more money from other investors and lenders to restart the project. He has taken deposits on about half of the 800 condos up for sale."

"Saca did not return a telephone call seeking comment. Mark Cordano of Sacramento-based Cordano Co. said his company has put its Towers retail marketing efforts 'on hold' for now."

The Bakersfield Californian. "In another sign of a stalling real estate market, the number of permits issued to build new homes in Bakersfield dipped to its lowest point in seven years during the first quarter of 2007, according to a report prepared by Howdy Miller of Ticor Title."

"'We had such a huge run-up for a number of years,' Miller said. 'These numbers just reflect the fact that we're a tad overbuilt and that it's going to take some time to catch up with the existing inventory.'"

"Locally, an excess of available homes, high land prices and investor speculation during the real estate boom of recent years combined to sideline small builders and cause large developers to scale back building plans, Miller said."

"KB Home, a national builder with a large Bakersfield presence, canceled a planned subdivision last year because of high land costs."

"Corky Martinez, owner of C. Martinez Concrete, didn't need to see a tally of building permits to know construction had slowed. 'After the first of the year, it didn't slow down,' Martinez said. 'It just shut down.'"