The LA Times looks at the new UCLA report. "The UCLA Anderson Forecast said in its latest quarterly outlook to be released today that home prices probably would not fall much from current levels. 'Absent a recession, the price of a home five years from now is not likely to be substantially lower than it is today,' UCLA economist Ryan Ratcliff said."

"The slowing housing sector has placed California's economy 'at a tipping point,' UCLA economist Ratcliff said. Because real estate has been a major driver of economic growth, its retrenchment is bound to have some consequences."

"Nonetheless, the latest DataQuick data was the strongest indication yet of how the balance of power in the region's real estate market has shifted from sellers to buyers in recent months. 'The pendulum is now swinging the other way,' said David Burger, an Encino-based real estate agent. 'A year ago there were lots of offers. Now we have more homes and fewer deals.'"

"He should know. For the last five weeks, Burger has been trying to sell a three-bedroom house for a client in Burbank for a recently reduced price of $875,000. The house on Olive Street is competing with 94 other listings in the vicinity, about four times what was for sale there a year earlier. 'This house a year ago would have sold in about two weeks,' he said. 'Two years ago, in a day.'"

"This year 50% more homes have come on the market regionwide versus the same time a year ago. The number of transactions that closed in May fell 11.7% from a year earlier, the slowest May since 1999. It was the sixth consecutive month that sales volume declined, DataQuick said."

"All but one county saw a drop in sales last month, with Orange County posting the biggest year-over-year decline at 31.6%. The markets that were first to see their prices skyrocket six years ago are now showing the weakest price gains. San Diego County, for example, gave up a year's worth of gains in May."

"Tiprin Follett knew the housing market was downshifting when she put her South Pasadena home on the market nearly three weeks ago. So she listed her four-bedroom house at $1 million, which was below the neighborhood's average price. She figured that tactic would attract loads of prospects. It did. More than 150 people have streamed through Follett's home since it was listed. But not one offer."

"'It's as if they're waiting for something better or less expensive to come up,' Follett said."

"Wes and Brooke Gavins have been shopping for a home for the last six months but are reluctant to make an offer. Prices seem too high, they say, and with more homes to choose from, there's no pressure to act hastily. 'But it's still tough to find deals,' said Wes. 'You don't want to be the one to overpay.'"