Truila chief economist Ralph McLaughlin and Emily Chang discuss the real estate crunch for first-time homebuyers. The debate is on whether or not the market is entering a new plateau phase.

"The difference is a bubble burst and plateaus doesn't" said Mclaughlin. "We are entering a period of soft landing, because 10 years ago when there was a bubble lending was out of control."

"The Tech Hub's impact on real estate in the Bay area is much worse, and it epitomizes what we have seen on a national level. Starter home inventory nationally is down 44 percent, and in the Bay area it's about 70 to 80 percent. It's a huge drop."

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