Dataquick has some numbers out today in California. "Home sales in the Bay Area slowed to their lowest level in ten years as prices increased at their slowest pace since spring 2003. A total of 7,941 new and resale houses and condos were sold in the nine-county region last month. That was down 19.1 percent from 9,892 for June, and down 30.8 percent from 11,470 for July last year, according to DataQuick."

"Last month was the slowest July since 1996 when 7,682 homes were sold. The average July sales count since 1988 is 9,158."

"'One of the questions being asked is how much future activity was drawn into the present in 2004 and 2005 when interest rates were at their lowest levels in decades. How much of today's demand has already been met?' said Marshall Prentice, DataQuick president."

"The median price paid for a Bay Area home was $627,000 last month. That was down 2.6 percent from June's record $644,000, and up 3.5 percent from $606,000 for July a year ago. The typical monthly mortgage payment that Bay Area buyers committed themselves to paying was $3,106 in July. That was down from $3,183 in June, and up from $2,653 for July a year ago."

"Adjusted for inflation, mortgage payments are 22 percent higher than they were at the peak of the prior cycle sixteen years ago."

"Sales fell 41.2 percent in Solano County, 40.1 percent in Sonoma County, 34.6 percent in Alameda County, 29.9 percent in Marin County, 29.7 percent in Santa Clara County, 28.8 percent in Napa County, 26.9 percent in Contra Costa County, 23.9 percent in San Francisco and 16.6 percent in San Mateo County from July 2005 to July 2006."

The LA Times. "Southern California home sales fell to their lowest level in nine years last month as price appreciation continued to decelerate, data showed. Forecasting the extent of a decline is vexing to even the most veteran of housing stalwarts."

"'I don't know how soft the landing's going to be,' Eli Broad, Los Angeles philanthropist and founder of giant builder KB Home, told Bloomberg. 'I think we're in for a period of a year or two years where housing prices are going to go down or stay stable, but certainly not go up.'"

"By some measures, the inventory of resale homes and condos in Los Angeles and Orange counties doubled in the last year to 39,000. Meanwhile, homes are taking longer to sell. Those factors are starting to weigh on prices."

"In Rancho Cucamonga, most of Brock Hubry's prospective buyers are well aware that appreciation is slowing. Yet the real estate agent makes sure they know just the same. 'When I'm talking to them, I tell them if they're planning to sell in the next two years that they may not make a profit,' Hubry said."

"Jennie and David Garcia are testing the housing market again. This time the Yucaipa couple are asking significantly less for their five-bedroom Yucaipa home. Their house didn't sell after a four-month effort ending in July. The Garcias don't want to lock in some of that appreciation on their Yucaipa house in the past two years. 'We are afraid the market is going to go lower,' Jennie Garcia said."

"In March, they listed their home with a real-estate agent for $509,000. 'The first week we had four or five lookers. After that there was nothing. It was pretty bad,' she said."

"Last week they decided to make another stab at trying to sell the house, this time on their own. The asking price is now $468,000. Two people showed up at an open house over the weekend. 'Better than nothing,' she said."

"'We are not near the bottom,' said economist Christopher Thornberg, a senior economist at UCLA. 'Anybody who bought a home in the last year and was hoping for appreciation to bail them out is in for a rude awakening,' he said."

"Orange County's home price juggernaut slowed last month, with Southern California's second-biggest sales declines and the region's second-smallest price gains. July's median home price slipped $7,000 from June's, receding to $639,000, according to market tracker DataQuick."

"Real estate professionals say prices finally are succumbing to reduced demand partly because of higher mortgage rates, fewer can afford a home and those who could afford one have already bought."

"Dean Zibas, owner of a San Clemente appraisal service, said he's seeing more homes sold after making price reductions and more homes selling for less than the recent sales of comparable properties. Mac Mackenzie, the top-producing Coldwell BankerRealtor, said he's starting to see homes that sold for $650,000 last summer now going for around $590,000."

"'We're seeing pretty substantial price reductions,' the Irvine agent said. His advice to homeowners: sell now or ride it out for four or five years. 'It's not a seller's market anymore,' he said."

"Bob Chapman, past president of the Newport Beach Association of Realtors, said buyers and sellers appear to be adjusting to the new realities. 'The market is finding itself,' he said. 'It's not the Disneyland-high price it was before, but it is fair-market value.'"

"With the number of homes offered for sale bumping up to 16,004 , some buyers and sellers are still at loggerheads. Two homesellers asserted that they're not moving until someone pays their rock-bottom asking prices. 'It's probably not a good time to put it on the market,' Beverly Huffman said of her San Juan Capistrano home, now listed at $729,000. But, she added, 'I've got time, so it doesn't matter. I could stay here the rest of my natural life.'"

"Bob Lang, a longtime real estate broker, i's waiting out the market. 'It's going to take a while, but I think prices are going to come down,' said Lang, renting an Irvine apartment since selling his condo in September. 'I'm definitely looking for THE deal.'"