Real estate tells tales of impending bubble

Industry concerned over interest rates, increase in home values

Real estate broker Vince Landolna has a theory about the housing bubble debate: Due to high housing costs, San Francisco Bay Area home buyers are seeking out affordable housing elsewhere. They’re turning their attention east towards California’s Central Valley.

Now, these lower-cost areas are inflating wildly, pricing out local residents.

The escalated housing values won’t be a problem as long as homeowners are making enough money to afford the increasing mortgage payments.