The California realtors have the May numbers out. "The median price of an existing home in California increased 8 percent in May and sales decreased 21.1 percent compared with the same period a year ago, CAR reported today. 'The median price of a home continued to increase in May, but at a more sustainable 8 percent rate,' said C.A.R. President Vince Malta. 'This is the first time since November 2001 that the median price did not increase by double digits.'"

"Statewide home resale activity decreased 21.1 percent from the 618,920 sales pace recorded in May 2005. 'Year-to-date sales are down 19.5 percent,' said C.A.R. Chief Economist Leslie Appleton-Young."

"C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in May 2006 was 5.9 months, compared with 2.7 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate."

From the Desert Sun. "Coachella Valley market continues to move in favor of buyers, although sales counts in May were 19.7 lower than a year ago, with a total of 1,131 properties sold. Rocio Flores, a real estate agent in Indio, said valley resale homes are competing not only with each other, but increasingly with new-construction houses being offered up with significant pricing incentives, free upgrades and other lures."

"David Richer of Palm Desert, who moved to the valley from Los Angeles just over two years ago..(has) been renting while he tracks local real estate patterns and decides when to jump in as a buyer. He recently saw brand-new, 3,000-square-foot homes in a posh La Quinta subdivision, going for $700,000 a few months ago but now being offered at around $530,000."

"Richer has a hunch that prices at all levels could be changing significantly in the coming year, especially as some current owners feel stretched by rising monthly payments on their adjustable-rate loans. 'I think a lot of people got into this market in a panic, thinking they'd never have another chance to buy,' Richer said."

The Daily Breeze. "In May, the numbers were practically screaming as the inventory of homes for sale in the South Bay beach cities nearly tripled from a year earlier."

"'I've been through a few of these cycles and I would expect this adjustment to last for a while, until prices get real again, however long that takes. I'm thinking years,' said Manhattan Beach real estate broker Jim Gallagher. 'But I think we're going to be in this market for a while. This new, emerging market.'"