Most people who live in Los Angeles are well aware that homes in the area are expensive, but a new report from real estate tracker CoreLogic says prices have gotten so high that LA homes are now “overvalued.”

That means that sale prices are at least 10 percent above the level where long-term trends suggest they should be, taking into account the salaries of typical buyers.

“Prices are just so darn high,” says Frank Nothaft, CoreLogic’s chief economist. He points to a 7.8 percent jump in LA area sale prices over the last year as evidence that the cost of homes may be outpacing the ability of residents to pay for them.

By CoreLogic’s calculations, Los Angeles area homes have been overvalued since June of 2017, when sale prices in the region hit an all-time high. Nothaft says the metric should serve as a “yellow light” for buyers.

“Proceed with caution,” he says, explaining that those high prices are largely the result of historically low interest rates for homebuyers—rates that are now rising precipitously. That makes things tough for buyers now entering the market, who face prices significantly higher than they were a year ago and loan conditions that are less favorable.

Nothaft expects that will cause price growth to slow down—but not to stop—over the next year. That’s because, while plenty of people are still looking to buy in LA, the number of homes for them to choose from is relatively low.

“When you have rising demand facing limited supply, it translates into price growth,” says Nothaft.

What will it take for homes in the LA region to lose that “overvalued” assessment? The answer isn’t very fun.

“When we have another recession, there could be a correction in the LA market,” Nothaft says bluntly. “Either incomes need to rise more or prices need to rise slower.”