Notice the tone, even of the Realtors. Everyone seems cautious about the increased prices and note that the high prices (in 2000!!!) were not good for the overall economy.
The bubble changed everyone’s perceptions (even the bears who think that $400K is an “affordable” house).
A quote from the article:
Affordability is the “single most important factor right now that will slow our market,” said Kristen Fowler, a real estate agent at Coldwell Banker Yorba Linda.
Apartment rents are at record highs, too, and that means potential home buyers are paying more for housing, cutting into their savings for a future down payment on a house or condominium.
Said Fowler: “If housing is not affordable for the masses, we won’t have enough buyers to go around.”
