It was a noteworthy decline. But at this point, we can't tell who is leaving the market: the first time home buyers, the people trading up. ...

Take downtown Seattle for example, where there seems to be condo projects springing out of the ground everywhere. The same thing's happening in downtown Spokane.

The large percentage change in building permits are usually because of a large apartment building or two, but that's not what's happening in Cowlitz County --- most are single-family dwellings.

More troublesome is the inability to find affordable starter homes.

As a result, we should see a stabilizing in prices to bring them more in line with inflation.

Affordability declines are worrisome, but consistent with strong markets for the past 30 years. More troublesome is the inability to find affordable starter homes.