A pair of reports provide an update on the housing bubbles in the northeast. "Home buyers in New Hampshire, the nation's most livable state, are getting a boost from growing inventories of homes for sale. Blame higher interest rates, escalating home prices and a media feeding frenzy for scaring off buyers, leaving the market flush with homes for sale and depressing the rate of home price appreciation."

"'During a three-month period last fall there were articles about the bubble (bursting) and all that got people nervous and they wanted to wait and see what happened. There were a bunch of different contributing factors,' said (broker) Patty Harpin."

"Home sales tumbled 10 percent, the Northern New England Real Estate Network said. 'With the amount of inventory, buyers have no choice but to take more time. It used to be they had six houses to look at in their price range and now you may have twice as much. It really does give buyers more options,' said Harpin."

"'What has become evident is that there really are some significant values among the mostly overpriced listings that clutter our MLS, and those homes sell pretty fast. Where there is still a level of greed (unrealistic financial expectations left over from the last few years' banner markets), or a lack of motivation to prepare the home for sale, or to negotiate, the homes just sit,' said (broker) Dane Hahn in Stratham, NH."

"Buyers who took an investor's or more speculative approach to New Hampshire home buying in the past year or two are also beginning to sweat smaller returns. 'The slowing of price appreciation means that sellers need to start relying on the equity they have paid into their home more than on appreciation when it comes time to sell. They need to think carefully before taking out a home equity loan. If home values don't increase enough to cover closing costs and the mortgage is too close to market value, sellers could end up bringing money to the closing table instead of from it,' (realtor) Linda Allen."

"Experts say a spring shake out is in the works, but waiting may or may not be the name of the game, depending upon varied individual circumstances among buyers and sellers."

"'For investors who are grabbing an opportunity to sell (because the market may go lower, or their adjustable rate mortgage may go higher) their motivation to sell at almost any price could be quite strong (waiting won't help.). For move-up buyers, who need another bedroom, or a better school system, there are some great values, but they will probably not get all the money on the resale of their existing house (waiting probably won't help). For old-time Yankees who heard their farm might be worth a couple of million dollars, that was last year (waiting didn't help.),' said Hahn."

And the Wall Street Journal has this on Long Island. "Long Island's Nassau County boasts beautiful beaches and an easy commuting distance to Manhattan. Recently homebuyers could still find exclusive waterfront properties but bargains have been scarce. But there may be some relief on the horizon for buyers."

"The supply of homes on the market has increased in recent months, giving potential purchasers more options. Some brokers characterize the market as balanced while others say they are seeing a complete shift in favor of buyers. (Broker) Peter Gentile says his company has ordered more for-sale signs to meet demand caused by the uptick in homes on the market."

"He says he expects to see more home sellers sweetening the pot by reducing prices. 'The market has completely changed,' Mr. Gentile says."