I'd say housing is overpriced, but whether or not that implies that prices are going to crash is a different question.

Generally good news in terms of San Diego, we will outperform California and the rest of the nation.

The number of home sales is down, price appreciation on most homes is not as great as it used to be, and it's taking longer to sell homes. That could mean less growth in construction work.

There might be some seasonal reasons for the construction losses, but the decline could be a sign that our overall employment growth is slowing.

Almost everywhere I go, people ask me if we're in a housing bubble here in San Diego. My answer is yes, but the bubble isn't going to burst.

They took a sharper run up in prices, so it makes sense that there's a decrease there. Some people have been priced out of the housing market, but others are waiting.

Things are booming a little bit in terms of job quality. In the past, I've been a little worried ... that most of the job growth has occurred in lower-paying sectors. But recently, there has been a lot of growth in professional services.

With less appreciation, consumers will be less able to tap into home equity loans to finance their purchases, which could put a damper on the national economy.

To the extent that the architectural or engineering services are connected to home construction, they could slow down more in the future.

What I don't see is a collapse in pricing. To get a collapse ... there would have to be a big job loss where people are forced to put their houses on the market for distress sales.