Some reports on the housing bubble in New Jersey. "In New Jersey, existing home sales, which include single-family homes and condos, showed a dramatic 8.1 percent drop from January through March of this year compared with this same time period in 2005."

"Home prices in the Newark metropolitan region, a six-county span that includes Essex, Union, Morris, Hunterdon and Sussex in New Jersey and Pike County, Pa., rose 6.5 percent in the first quarter of 2006 to $405,300. However that figure has also been on a downward trajectory since hitting a high of $446,800 in the third quarter of 2005."

"'The fact that there is some softening in the pace of house-price appreciation indicates that some sellers are beginning to reduce their prices,' said (economist) Celia Chen, a positive sign since the big pop in housing prices that prevailed during the past few years was simply 'unsustainable.'"

"It will take longer for prices to cool than sales, particularly in the juiced-up markets,' she said. 'House prices are still generally up from a year ago since many homeowners are still reluctant to reduce prices to match the softer demand. Instead, inventories are building up as sellers wait longer for their homes to sell.'"

"Chen said that..the national median price of a home is actually down by an annualized 4 percent; the first time that has happened in nearly 11 years."

"'It gets back to supply and demand,' said Bob Moulton, residential mortgage broker based in Long Island. 'Inventory is a lot higher than where we were a year before so there is a glut of houses available for sale. The equation calls for the softening of sales prices over time. It has to happen.'"

"In the Newark area, one analyst said the new data are a bit deceptive because they include deals that were negotiated last year. Sean T. Shallis, a real estate strategist in Jersey City, said that in newly negotiated sales, he's noticed prices have been down. 'What we're seeing is a softening market,' Shallis told The Record of Bergen County."

"The National Association of Home Builders on Monday said builders' confidence in May dropped to its lowest level in since mid-1995. Hovnanian, New Jersey's largest homebuilder, on May 1 cut its earnings forecast for the fiscal second quarter. Earnings were hurt by production delays, a slowdown in sales, higher cancellations, price reductions and higher costs, the Red Bank, New Jersey-based company said."

"Many real estate insiders say the market appears to be slowing, not crashing. Buyers who reduce their asking price can sell quickly. And the North Jersey market has some protection because of its proximity to New York City and a limited supply of housing, experts say."

"Maureen McSpirit, a realtor in Tenafly, said buyers are being more selective and deliberative because they now have more homes to choose from. But homes that are priced right are selling, she said. 'Many sellers are willing to drop their prices,' McSpirit said. 'They're becoming more aware of the change in the market and are making adjustments to reflect that.'"