Slowdown Coming in California Housing Market

The San Jose Mercury reports:

California's housing ``bubble'' may not pop, but an economic forecast being released today predicts a slow leak over the next year. That could derail an economy pumped up by ever-inflating home prices, according to the UCLA Anderson Forecast.

For much of the past two years, Anderson economists have been predicting an end to the frothy housing market. Now they say the slowdown finally may be starting. But it may be another year to 18 months before the full effects are felt, said senior economist Chris Thornberg.