The Sacramento bee has this update from California. "State Assembly candidate Kevin Jeffries of Riverside County could have bought a Sacramento-area condominium last month in anticipation of winning his election in November. The would-be legislator was smart to wait."

"'Some of the places we were looking at a month ago have already been discounted $10,000,' said Jeffries. 'We don't want to lose equity overnight as soon as we start escrow on it.'"

"As buyers wait out a slumping market and sellers increasingly show a willingness to cut and run, Sacramento County saw California's steepest year-over-year fall in median home prices during July, according to DataQuick. Median sales prices for new and resale homes and condominiums in Sacramento County fell 5 percent below July 2005 levels. For existing single-family homes, prices fell 3.2 percent below July 2005."

"The drops weren't limited to Sacramento County. Median sales prices for all homes and condos fell below the same time last year for a second straight month in Placer and Amador counties and for the first time in Sutter and Yolo counties."

"'It seems pretty clear to me that buyers in Sacramento are more or less on strike,' said economist G.U. Krueger."

"Others blamed sellers for clinging to unreasonable boom-era price expectations in a market where thousands of unsold homes are piling up. 'If you don't need to sell, get it off the market. If you do need to sell, don't wait until winter because it's going to get worse,' said (broker) Mike Lyon. 'I can see us dropping 5 or 10 percent if we don't get this inventory down.'"

"July represented the second straight month that sales prices in Sacramento County fell below last year's levels. Among urban areas, Sacramento joins San Diego and San Mateo counties and San Francisco with median home prices now below where they were a year ago."

"July also saw the biggest drop yet in year-over-year sales of existing homes in El Dorado, Placer, Sacramento and Yolo counties. Sales were down 41 percent from July 2005. July marked the 16th straight month in the four counties that sales of existing homes were down from the same month a year earlier, according to DataQuick."

"The newest statistics, gathered from county property records, again showed the mounting advantage to buyers in a market once ruled by sellers. The number of homes to choose from in El Dorado, Placer, Sacramento and Yolo counties climbed to a record 15,474, more than twice the inventory in July 2005."

"Though sale prices of most existing homes are falling, most new-home builders have yet to join the price cutting, said industry consultant John Schleimer. Instead, they're offering up to $120,000 in freebies, everything from landscaped backyards to financing incentives."

"Buyers who once felt pressured to take any home they could afford before prices climbed higher now say they're willing to wait. 'In terms of time we don't feel rushed any more,' said buyer Mark Aizenberg."

"Aizenberg, seeking a capital-area home in the $500,000 to $600,000 range, calls himself thankful that he didn't buy during the past eight months. 'We're basically now not compromising on layouts and getting 800 square feet more house for the money,' Aizenberg said. 'I feel prices are going to come down significantly more.'"