The Olympian has this update from Washington. "As the South Sound real estate market cools from overheated to warm, sellers are increasingly offering price reductions in order to speed up sales. Real estate agents say the recent appearance of homes marked as 'Price Reduced' indicates that this summer's housing market is cooler compared with a year ago."

"Inventory levels and interest rates are higher, and newly constructed homes continue to come onto the market, contributing to longer selling times. In July, there were 1,633 active listings, compared with 1,031 for the same period last year, according to the Olympic MLS."

"Some agents, though, speculate that because builders don't always list all of their new homes, inventory levels could be much higher, in the range of 2,200 to 2,500 homes."

"Given the extra time needed to sell a home, real estate agents and their clients have been more aggressive in this market, according to Lacey-based broker Jeff Crandell. 'I am noticing price reductions coming across my desk, and I think we're seeing more homes marketed that way than in the past,' he said."

"Inventory levels are substantially higher and the market is not as feverish as it has been, Crandell said. 'Listings are coming in at a far greater rate than we've seen in the past few years, and home sellers and agents have more work cut out for them,' he said."

"At Van Dorm Realty of Olympia, marketing expenses are rising as real estate agents spend more on advertising and fliers to help their clients sell their homes, said General Manager Jeff Pust. Pust said he also has seen price reductions he hadn't seen for at least a few years."

"He said the Thurston County housing market peaked last summer. The 'frenzy' has come out of the market, Pust said. 'Accepting offers that are less than full price is becoming more normal,' he said. 'When you start seeing prices reduced, (home price) appreciation is leveling off.'"

"Educating sellers about the change in the market has become a new priority for real estate agents, said agent Jackie Tosland. 'Homes aren't selling as quickly, and sellers don't realize it isn't as hot,' she said. 'They remember last year.'"

"Tosland client Jennifer Huber of Lacey cut the price of her 1,635-square-foot home by $10,000 after she feared it wouldn't sell as quickly at the higher price. Huber said her home eventually would have sold at a higher price, but she wasn't willing to wait because she and her partner are in the market for another home."

"'When I saw other people lowering their prices, we couldn't wait for an offer,' Huber said."