Most of the HELOCs from 2004 can refi as they probably have positive equity here in Southern California. In Orange County, CA we are just 12% off the bubble peak and it’s more than likely that they have built 15-20% equity in the home since 2004 through their payments so they will more than likely be ok. This is a non-issue.

I think housing is going further up and is not going to come down anytime soon. This is a shame for first time buyers here but I am pretty sure many of them are forever priced out.

This is common in other countries, for instance in Barcelona, Spain a small home near the city can cost 1 million Euro but hardly anyone can afford it because the salaries there are so tiny and the taxes are so high, in addition the unemployment is pretty staggering, yet home prices have not come down at all.