A lot of the starter homes are on the smaller end, a little bit older.

The good money is going to be made where the money is. A lot of the swapping-up has already happened.

If they sold their house today, they would still get more money than they paid for it. But they won't be able to buy as many goods and services as they could before.

Part of the purchasing decision for buying a house is an expectation of what housing prices are going to do in the future. It's true that houses are getting more and more expensive, but people are increasing their wealth in ways we haven't seen in a while.

The benefits have been really widespread. Who is in first place one quarter might be in second place next and last place down the road.

This is a slowing down to what I think of as good, sustainable levels.

Five percent on its own would be good news. That's a good rate of appreciation and reflects a strong housing market.

People who are making the transition from renters to owners will find it the biggest hurdle.

That's a big slowing. It's evidence that the Federal Reserve and Fed Chairman Alan Greenspan are being effective in their efforts to cool the economy.