A pair of reports from the northwest US; the Bellingham Herald, in Washington. "Even with more houses on the market, home prices continue to rise in Whatcom County. 'Looking at the sales more closely, I found that the attractive, well-priced properties are getting full-price offers, while other properties are languishing because buyers think the price is too high. Generally speaking, if a property doesn't sell in its first two weeks, it will be on the market for several months,' said Lylene Johnson."

"Buyers can choose from significantly more homes on the market. Bellingham, Lynden, Ferndale, Blaine/Birch Bay and Sudden Valley had 1,357 homes for sale on June 30, compared to 655 a year ago. (Realtor) Mike Kent thinks a couple of factors are affecting the average sales price: The number of sales has fallen 13 percent, while more homes have been selling above $1 million this year."

"'When you have a few more $1.9 million homes being sold, it will really pull the average up,' Kent said."

"Peter Roberts, president of the Whatcom County Association of Realtors, said he's also noticed an increase in the sales of higher-end homes. 'There are more people moving to this area, starting at a higher price point than what we're used to seeing,' Roberts said. 'However, these buyers understand the market, so a house that is slightly overvalued will just sit.'"

From the Oregonian. "June appeared to repeat a trend of prices rising, even as sales volumes decline and the supply of homes on the market grows. Economists and local real estate agents say housing in the Portland area seems to be in a transitional period."

"'You're starting to see everything that you're expected to see except for the change in pricing, that tends to come in last,' said Jerry Johnson, an economist in Portland."

"Real estate observers have been betting for years that the Portland-area's robust housing market was headed for a slowdown. Most differed only in how soon they thought it would slow, and whether it would result in prices actually dropping or simply more modest appreciation."

"While June's figures didn't resolve that debate, they did begin to substantiate observations by real estate agents that their buyers are finding more houses for sale now than they did a year ago."

"Housing supply rose sharply. The number of active listings, comprising newly listed as well as homes on the market in previous months, rose to 8,575 by early this month compared with 5,423 a year ago, an increase of 58 percent."

"The disconnect between rising inventory and higher prices suggests the market is in transition, when sellers are trying to stick to a high price they feel they should get, said Bill Conerly, an economist in Lake Oswego."

"'They haven't yet accepted the idea that the market has softened,' Conerly said. 'And certainly, if I had a house on the market and saw the median up 17 percent and my house wasn't selling, I think I'd leave it on the market a little longer.'"

"Already, veteran real estate agents say they've adjusted their expectations down from last year. Dave Hrabal, a top producing agent with The Hasson Co., said last year he would set an asking price above recent comparable sales prices and receive full-price offers. This year, he and others have said they're sticking closer to the prices achieved by recent comparable sales."

"Eventually, homeowners who need to sell a house quickly will lead the market downward, Conerly predicted. Those sellers, who perhaps need to relocate to start a new job out-of-state, can't afford to wait for a buyer to come in at their price. They could set a precedent for lower prices, he said."

"'We'd have to see falling prices before people start accepting low offers,' Conerly said. 'They're not at that stage now.'"