The realtors trade group has a report out. "Appreciation in existing single-family home prices cooled to single digit rates in most metropolitan areas during the second quarter, according to the latest survey by National Association of Realtors."

"'David Lereah, NAR’s chief economist, said a market transition is apparent. 'With more sellers competing for the pool of buyers, the pressure on home prices has evaporated in most metro areas,' he said. 'After a full year of double-digit gains in the national median price, the timing is right for a cooling in the rate of growth, we are presently experiencing a soft landing in the housing sector.'"

"NAR President Thomas M. Stevens said the growth in inventory is more pronounced in the condo sector. 'Buyers generally have more choices in the condo market, so prices in many areas are fairly flat,' said Stevens. 'Speculators have left the market, meaning most buyers in the market today are serious buyers who plan to stay in their homes as a long-term investment.'""Twenty-six markets of the 151 surveyed experienced price declines from a year ago. And at least 59 markets finished the quarter down from their highs set sometime during the previous three quarters. In the quarter, overall condo prices actually fell 0.3 percent to $225,800.

The Associated Press. "The slowdown in the once-sizzling housing market is spreading, with 29 states reporting spring sales declines, led by big drops in former boom areas of Arizona, Florida and California. Nationally, sales were down 7 percent in the April-June quarter this year compared with the same period in 2005, the National Association of Realtors said."

"The five biggest declines this spring compared to the April-June period of 2005 were Arizona, down 26.9 percent; Florida, down 26.7 percent; California, down 25.3 percent; Virginia, down 23.9 percent, and Nevada, down 23.5 percent."

"Industrial towns losing jobs suffered the worst. In Danville, Ill., median home prices fell 11% in the second quarter to $65,200, cheapest in the country. Condominium prices in 14 markets, including overheated areas like Virginia Beach, San Diego, and Palm Bay, Fla., also declined. The reason: Speculators who thought they could flip the properties for a quick buck are trying to bail out now."

One economist sees a hard landing. "Bearish real estate economist Christopher Thornberg, who says the Southern California housing market is a bubble beginning to pop, has left UCLA Anderson Forecast to strike out on his own."

"Other market observers now agree that the market is cooling but are uncertain about whether it will result in a 'soft landing' that won't disrupt the economy. Thornberg said his expectations are growing more gloomy. 'My guess is we're going to have a hard landing,' he said. 'It's ugly out there.'"

"There has been large-scale overbuilding of homes and condominiums nationwide, he said. 'And here in Southern California we have had this massive price appreciation that is just not justifiable by any kind of standards of reasonable economics,' he said."

"With interest rates rising in recent months and sales declining, 'the bubble is popping, just like a bubble is supposed to,' he said."