The Reno Gazette Journal has this update from Nevada. "The amount of sales and the median price of an existing single-family home in Reno continue to fall. The median price in July for the Reno metropolitan area fell 5 percent compared with the same month in 2005, according to the University of Nevada."

"The once red-hot housing market that has slowed in every month this year. At the same time, sales continued to slide, down 40 percent to 366 homes sold, from July 2005. And with an inventory of single-family homes of more than 5,000, the median time a home is on the market has stretched to 75 days, up 39 percent from July 2005."

"'The market has already corrected a solid 10 percent, and the market is poised to correct another 10 percent,' said David Morris, broker and 29-year veteran of the Northern Nevada real estate market. 'The market correction is very real and it is going to be very deep.'"

"He said the resale market is being pressured by the new homes market, where deep discounts and incentives have become commonplace. Morris estimates that the downturn will last about three years. 'Prices are probably going to adjust across the board for the majority of houses a solid 20 percent,' Morris said. 'There will be a few that will adjust by the spring or summer of '07 by 30 percent, and a handful that will adjust worse than that.'"

"Realtor David Graham said that because of the market shift, buyers have changed their behavior. 'Properties are being shown, but buyers are saying that it is too expensive,' Graham said. 'Buyers are being very selective today before they make an offer, and price is the determining factor.'"

"'(The price) was much too aggressive to start with, and the market conditions are saying we can't support that price,' he said."