California’s post recession recovery is letting off the gas and appears to be coming to a close, the Los Angeles Times reported.

The rise in mortgage costs will probably keep values from skyrocketing, but price appreciation will probably continue, said Leslie Appleton-Young, chief economist for the California Association of Realtors. That means housing affordability probably won't improve any time soon.

Of course, recent troubles with foreclosures on the legal side may also conspire to keep supply tight, as a Fifth Circuit decision appears to contradict another decision in regards to homeowners challenging default filings.