The California press is focused on the buyer/seller stand-off. "After five straight months of falling sales prices for Sacramento County homes, values edged up slightly in February. The county's median price climbed nearly 1 percent from January levels, reaching $355,000. Sacramento County's median home sale prices remain below an August peak of $372,000."

"'The receding of the market we saw for three or four months is in large part a function of Bay Area buyers taking a pause,' said DataQuick analyst John Karevoll. 'Sacramento will now generate its own demand to a greater degree.'"

"The Bay Area real estate market eased off the brakes slightly in February, but sales remained at their lowest level in five years and prices continued to flatten. 'Obviously, the air is leaking,' said Ken Rosen at UC Berkeley, 'but it's not looking anything like a collapse yet.'"

"'We're at the peak and what happens next is a matter of great uncertainty,' said Edward Leamer, director of UCLA Anderson Forecast. He said the sales decline will continue and likely translate into a price drop."

"In Alameda County, 1,422 homes sold, down 19.2 percent from February 2005. The median price was $579,000, up 13.1 percent from a year ago, and flat compared with six months ago. In Contra Costa, 1,456 homes changed hands, down 10.4 percent from the previous February. The median price was $569,000, up 16.6 percent from February 2005, down 0.2 percent from January and down 1.4 percent from September 2005."

"That may be bad news for sellers, but it's a welcome change for buyers. 'We're seeing a little bit of negotiating now and some price reductions,' said Paul Ward, a broker associate."

"Deborah Granelli had her eye on one property that needed about $40,000 worth of work. On the offer date, the listing agent called to say there was a buyer offering $50,000 over the asking price. Granelli told the agent she wasn't interested in bidding. 'Things are sitting on the market longer,' Granelli said. 'I'm more comfortable saying I'm not comfortable going for this or that property.'"

"A 1,000-square-foot condo on Hermann Street in San Francisco has been sitting on the market for about two months. A few weeks ago, listing agent Steven Bragg reduced the price from $679,000 to $649,000. Despite dozens of open houses, and the fact that the property is priced markedly below the $690 average per square foot sale price for condos in the city, there have been no offers. 'People believe that house values are going to drop so they're sitting on the fence waiting,' said Bragg, an agent in San Francisco."

"'What I'm seeing is both buyers and sellers digging their heels in, buyers saying 'I'm not ready to buy' and sellers going 'I'm not going to lower the price,' said (realtor) David Kerr. 'A lot of sellers are still pricing to the higher-end and their properties are still sitting there, and they're not considering realistic offers,' said Kerr, whose territory includes Oakland and Berkeley."

"'Sellers do not recognize what's going on in terms of the market transitioning,' Kerr said. 'They still think that because the house across the street sold for like $50,000 to $100,000 more than theirs, that theirs should be worth that, plus some. And what's happening is, it's not happening.'"

"Mathew Moses from Berkeley, has been searching for a home in the $500,000 to $600,000 range since December but hasn't found anything to compel him to make an offer. 'The stuff that I'm looking at is way overpriced,' said Moses. 'I think it could be helpful if I don't find anything ideal for me and wait another six months,' he said. 'I'm willing to do that.'"