The Michigan Live site reports on why inventory levels are so important. "Oakland County homebuyers are taking their new-found negotiating power to the bank, winning concessions, from furniture to money for roof repairs, as the inventory of homes on the selling block increases. Savvy buyers, knowing that more properties are on the market and sales generally are slow, are taking full advantage to get more bang for their home-buying buck."

"But agents are stuck in the middle as sellers slowly accept the county's changing market. 'Sellers are not realistic about what they can sell their houses for,' said Chris Shoemaker, president-elect of the North Oakland County Board of Realtors. 'We have a lot more supply than demand and our supply is overpriced.'"

"Oakland County residential sales in 2005, including condominiums, dropped to 16,452, compared to 17,808 in 2004. Meanwhile, Oakland County listings grew to 54,855 for all of 2005, according to Realcomp. The year before, 51,504 houses and condos were listed."

"'If you look at the increase of properties on the market, it is a great time to buy,' said Karen Kage. 'The ones that are selling are the ones that are priced right.' Coupled with a growing inventory of 'For Sale' signs in Oakland County, the year-over-year statistical changes create the perception that the market is declining faster than statistics show, Kage said."

"'There are more properties on the market,' she said, 'so people are saying, 'Look, they aren't selling.'"

"But homes are selling, in large part thanks to concessions. Those allowances include financial concessions, such as money from the seller so the buyer can fix a home's roof, for example. Concessions also have included throwing in personal property, such as furniture. If that's what it takes to get a buyer for a listing, concessions will continue, agents said."

"Realtors point to lenders as one of the driving forces behind the upswing in concessions. Tony Nuckolls said his company is not pushing concessions on buyers, but mortgage brokers are advising on a case-by-case basis. 'Some buyers may need some extra help,' Nuckolls said. 'We let them know about the opportunities of seller concessions.'"

"The media spotlight on Michigan's struggling economy and the housing market is a signal to buyers that they can call the shots on deals. Buyers also are making offers significantly lower than asking prices, Shoemaker said. With the large supply of homes, buyers know they can push because sellers want to sell, she said; they also know that some houses are overpriced for the current market."

"One Shoemaker listing at $379,900 had a buyer offer $327,000. Sellers, too, are more willing to negotiate because they know there is a glut of homes on the market, Shoemaker said. 'People are aware of what's happening,' she said. 'You can't help but feel the fear.'"