A pair of reports on Californian housing markets. "Housing prices in Nevada County dropped for the third month in a row in February. The median price of house and condominium title transfers recorded at the county Recorder's office dropped to $459,000 in February, compared to $470,000 in January."

"'People are starting to lower their prices, and we need that,' said Patti Moore, broker in Nevada City. 'Things just got too out of hand.'"

"Nevada County Board of Realtors director Skip Lusk said, 'From my perspective, there isn't any trend yet. My sense is, as the market tightens up a bit..people who really want to sell their house will bring the price down."

"While some sellers seem to be lowering their prices to appeal more to wary buyers, others are digging in their heels, real estate agents said. In many cases, the prices that homes fetched six months ago don't square with many buyers' perceptions of where the market is headed."

"'(Sellers) still think that, because the house across the street sold for $50,000 to $100,000 more than theirs, that theirs should be worth that, plus some,' David Kerr, a Bay Area agent. 'What's happening is, it's not happening.'"

And the Merced Sun Star follows up on the LA Times article. "Real estate is a driving force in Merced's economy. Five of seven members of the City Council draw their livelihoods from it, four are licensed to sell homes, including the mayor."

"It's little wonder that an in-depth Los Angeles Times article spotlighting the city's rapidly cooling housing market has made the rounds. 'I think half the town has read it,' said Mayor Ellie Wooten, a veteran real estate broker in Merced."

"The article follows the city's real estate market from the heady days of the past few years to the grinding slog of today. 'It's changed rapidly,' said Wooten. 'It boils down to supply and demand, and right now apparently we have an oversupply.'"

"But the city's historic housing boom continues, in spite of slowing sales numbers. While many newly opened subdivisions sit empty, developers in Merced have 7,000 new houses in the works. Hundreds are expected to go on the market this spring. Councilwoman Michele Gabriault-Acosta said about 200 resale homes were on the market when she got her license to sell homes in July. The number has since grown to more than 600."

"Gabriault-Acosta said she thinks too many homes on the market were overpriced."

"Councilman Carl Pollard, who got his license to sell homes in August 2004, said the days of multiple offers above asking price are definitely gone. He said $30,000 and $40,000 breaks on homes are not uncommon. 'Sellers are giving concessions, but if you look at the market, they're still not moving property,' he said."