A pair of reports on smaller housing markets, starting with the Tahoe Daily Tribune. "Deemed a market 'correction' of sorts, the South Tahoe Association of Realtors reported 495 single family listings on the market with 59 in escrow. That's up from the average inventory of 300-plus homes."

"Two months ago, the market showed 407 in current inventory. Last year at this time there were 268 homes on the market. A few years ago, 88 homes were listed."

"'The pie is so much greater now. The buyers right now are smart,' said association President Theresa Souers. 'We're seeing a correction that's happening across California.'"

"Agent Barbara Childs agreed that buyers are testing the waters and so are the sellers. She's noticed more withdrawals as sellers become frustrated with the offers. 'They have every right to do it, but if they listen to their real estate agent's advice, these properties will sell,' she said. They can't change the location, but they can be flexible with the price and make improvements, she stressed."

"'People have choices,' she said, while putting on an open house. She listed the 3,314-square-foot home in May. The seller is moving, so he's reduced the price from $1.1 million to $899,000. Five other homes are for sale on the street."

The Star Tribune from Wyoming. "Despite stagnant population growth and rising interest rates, the real estate market in southeast Wyoming’s intellectual capital has been ablaze amid rampant construction. Contractors are building homes and multi-unit apartment complexes at a feverish pace while developers press for more subdivisions."

"The proliferation of new apartments already is affecting demand for lower-end homes, said Kerry Greaser, an owner of a 58-year-old Laramie real estate firm. 'For years, we had a pretty tight rental market, and the private developers..saw that need and have been building a lot of apartments in the last five years,' Greaser said. 'Now, we are at an oversupply of apartments.'"

"Builders have overcompensated for what was a shortage in the rental market, and the new development is pressuring some property owners to lower rents, said (broker) Margaret Peterson. 'I haven’t gotten to that point with the vacancies,' Peterson said. 'I have just forewarned my owners this is a possibility. We may have to reduce our rents.'"

"The construction and development explosion calls into question the source of the demand. Laramie’s population actually declined from 27,204 in 2000 to 26,050 in 2005, according to Census Bureau estimates."

"Homes in Laramie and the surrounding area are among the most expensive in Wyoming. Some of that is due to the presence of high-end second homes. Local developers and builders, however, aren’t necessarily banking on wooing Laramie’s average wage earners. Jim Stephen of Gateway Construction said investors from California are buying some fourplex units in the Fall Creek development, while Arizonans also have expressed interest in the properties."

"Laramie developer Grant Lindstrom expressed some apprehension over the construction and development boom in the city. 'I think it’s going to be overbuilt pretty quickly,' said Lindstrom."

"'I think the market is overpriced, and I think it is going to drop a little bit,' said Dale Eslinger, a Laramie resident who owns 12 rental homes."