The Tracy Press has this update from California. "The winds of change have hit the housing market, according to real estate agents and analysts. According to agent Grace Alvarez, who was born and raised in Tracy and has watched the city’s market the past 18 years, this is the time to buy. As of Thursday, there were 764 homes and condos for sale in the Tracy area, not including Mountain House. 'It’s the highest (number) that we’ve ever seen here in Tracy, in my experience,' Alvarez said."

"The huge surplus of unsold homes means that sellers are lowering their asking prices. Which means those searching for new homes can get a lot of bang for their buck." "In Tracy, though, one wonders how low housing prices can go. Despite the glut of homes and condos on the market, Tracy won’t stop being a hot spot for Bay Area commuters looking to save on housing."

"Alvarez and other real estate agents expect the rate of foreclosures to jump in the coming months. That’s because in the extreme seller’s market that preceded recent falloffs, many people stretched beyond normal means to get into a home. For many who are finding they can’t make their astronomical payments, losing a house is a real possibility."

"And trying to get out of trouble by selling in a depressed market, where properties are sitting unsold for months, not weeks, is almost impossible."

"Nearly 350 homeowners in Tracy are on the verge of losing their homes because they’ve fallen behind on their repayments, and auction dates have been set for 63 of the properties."

"San Joaquin’s foreclosure rate was the highest in the state between April and June, with one out of every 154 homeowners behind on repayments at some point during the three-month period. That’s more than double San Joaquin’s foreclosure rate at the same time last year, and three times the California average."

"Karl Enzman, a director at the Central Valley Association of Realtors, said many homebuyers bought their properties 'with too rosy an outlook of the market.' He said many of these buyers couldn’t afford to make their repayments when bond-market pegged variable interest rates rose, forcing them into foreclosure."

"Countrywide Home Loans consultant Lynda Mendoza said that some homeowners lose their homes after becoming unemployed but that many foreclosures are the result of poor financial planning. 'They’re talked into buying a house that they can’t afford,' said the loan agent, who claimed none of her clients have gone into foreclosure."

"Real estate agent Tony Nance said many homeowners pulled equity out of their homes as house prices rose, and as some house-prices dropped they were left repaying loans with higher values than their homes."

The Union in California. "For the first time in many years, median prices for real estate in Nevada County dipped, declining 3.6 percent in June compared to median prices a year earlier. Rather than the bubble bursting, however, sellers are bringing prices closer to values as the supply of available houses swells, local real estate agents said."

"Prices also are being pressured by more supply. More than 1,400 properties in the county are on the MLS, compared to 400 a year ago, Greg Seghezzi in Grass Valley said."

"'The bubble has not burst,' said agent Sandy Wilson. 'Sellers should not panic, although they need to be more realistic on their prices.'"