Some reports from New York. "Through the first five months of the year, single-family home sales tumbled 12 percent from 2005, according to the Orange County Association of Realtors. Price reductions have become commonplace, and homes are staying on the market longer, say people in the business of selling homes."

"'What's affecting the market the most is, the investor is out,' said (broker) Chris Scibelli."

"These days, the speculators have moved on to gold or oil, or maybe animal pelts. 'We're getting back to really doing real estate,' Scibelli said. 'The quick dollar, the quick money, those days are gone.'"

From Newsday. "Potentially predicting future home price declines, the median price for homes under contract in Suffolk County dipped slightly last month, while the contract price in Nassau County saw a tiny increase. Even in closed sales, there's more definitive evidence of flat prices and a weaker real estate market."

"'Houses under contract are a leading indicator,' said Martin Cantor, chief economist for Sustainable Long Island, an advocacy group. 'It's now becoming a buyer's market that tends to have flat prices or diminishing prices.'"

"There's also anecdotal evidence that still-high prices and taxes are keeping some buyers from looking at Long Island at all. Traditionally, typical first-time home buyers purchase a house in Queens and then move to a larger home on Long Island. 'That's not happening like before,' said Buddy Hoosein, broker in Hollis, who said buyers are choosing to go to lower-cost areas instead."

The New York Times reports on problems with preconstruction condos. "More than 100 condos went on sale a few weeks ago at deeply discounted prices on 50 West 34th Street. The average price of a studio condominium in Manhattan is nearly $500,000."

"When prices over all were cut by $10 million last month, it had the appearance of a closeout sale at an appliance store. 'There are substantial discounts available to the buying public for a limited time only,' said Elliott P. Joseph."

"The project is caught up in a legal struggle between the owners of the building and the sponsor firm they contracted with to convert it to condos, and some previous buyers have already backed out of their market-rate deals."

"The Herald Towers project is an unusual example of what can go wrong, sending a chill through the lives of buyers who were early purchasers and their brokers, who lost commissions and lost the trust of some of their clients. If the case drags on, it could erode the public's confidence in condominium developments."

"Buyers of more than 70 of the 125 units previously sold backed out, according to some of the brokers who lost commissions on these sales."

"But as soon as the deadline to rescind a purchase agreement had passed, the Property Markets Group filed another amendment to the condominium plan lowering prices, infuriating many buyers who had stuck with the project, but now saw identical apartments offered for far less than they paid."

"'I feel that I am getting ripped off,' said David Yoon. After learning of the price cut, he found himself unable to back out of the contracts he had signed to buy two apartments for his family. Then, he said, when he tried to buy another apartment for himself at the discount price, he was turned down."

", said, 'We are giving them away,' (sponsor) Mr. Joseph said. 'And if the buyers are making money, I am losing money, but I hope to gain that back in litigation from the seller.'"

"John Jun, a broker with the Corcoran Group, said he completed deals for six apartments at Herald Towers: two buyers backed out, and four have already waited a year or more to buy, only to see the prices drop. 'New York City developers have credibility,' he said. 'But these buyers are angry. People who stayed in and didn't give back their apartments deserve some kind of discount. It really is unfair.'"