Los Angeles Times - "A baby-boomer bubble is forecast" (2-10-08)

"The common perception among economists is that the current housing mess will be a relatively short-term affair that should see a return to normalcy within the next few years.But, according to a new study by two USC researchers, problems of greater proportion lie just ahead. They call it the 'generational housing bubble' and maintain that it will be fueled by the same baby boomers who have been bidding up prices since 1970 as they moved up the housing ladder."

Orange County Register - "Construction slowdown hits contractors and workers alike" (2-10-08)

"First the slowdown hit residential builders. Then work alsoslowed in nearly every other sector as well, including commercial and industrial construction, according to figures from the non-profit Construction Industry Research Board, which tracks building permits in California. The estimated value of building permits for homebuilding fell 26 percent in Orange County last year, dropping to $1.8 billion from $2.4 billion in 2006."

Orange County Register - "Amount of O.C. construction, 1998-2007" (2-10-08)

"The estimated value of construction in Orange County declined last year in every category except non-residential alterations and additions. Here are numbers for the past decade"

San Francisco Chronicle - "Lenders pinch borrowing on lines of credit" (2-10-08)

"Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They've been told by their lender that they no longer can take money out on their credit lines because sinking home prices have left them with little or no equity. Among the lenders taking such action is Countrywide Financial Corp., which sent letters to 122,000 customers last week telling them they no longer could borrow against their credit lines. In some cases, the company says, the borrowers are 'upside down' on their mortgages - the total debt on the home exceeds the property's market value."

The Observer - "Credit crisis 'here to stay,' say top bankers" (2-10-08)

"The world economy faces a 'turbulent time', the Chancellor, Alistair Darling, warned this weekend after meeting finance ministers from the world's main industrialised nations in Tokyo to discuss ways of tackling the credit crunch. Darling and his G7 counterparts were presented with a grim assessment of the damage wrought by reckless lending in the American housing market, which has snowballed into a global financial crisis over the past six months."

The Press Democrat - "How could so many people afford homes at peak of boom?" (2-10-08)

"When home prices peaked in 2005, the typical home buyer in Sonoma County claimed to earn $120,000 a year on loan documents, according to federal home loan data. But they actually earned about $80,700, according to Census data. The spread grew in 2006, when the typical buyer claimed to earn $132,000; their actual income was about $79,000. They were enabled by a mortgage industry that was so eager to hand out money - and rake in lucrative commissions - that it issued many loans without requiring borrowers to document earnings."

The California - "Time to buy? -- Debate on about whether market is ripe for buyers" (2-10-08)

"Buy now or wait? That is the question many potential homeowners face as the region continues to trudge through a housing depression that leaves them wondering how much further home prices will fall. Industry insiders and academic analysts agree that the answer depends on who is doing the asking. For families, most Realtors and real estate professors concur that those looking at a house as a home should start shopping now."