The California realtors have the July numbers. "Home sales decreased 29.9 percent in July in California compared with the same period a year ago, while the median price of an existing home increased 5.1 percent, CAR reported today. 'Today’s market is slowing as sellers maintain often unrealistic pricing expectations and buyers have more properties to choose from,' said C.A.R. President Vince Malta."

"'In addition, unlike the slowdown we experienced in the 1990s, homeowners today are not under duress to sell due to job losses. The urgency that characterized the market for the last few years is now gone for all but well-priced properties,' he said. 'With inventory levels double that of a year ago, annual price appreciation for the state slowed from the double-digit rates we experienced throughout all of last year to single digits this year,' he said. 'And in some regions of the state prices are down from a year ago.'"

"'Many markets in California are mirroring other major metropolitan areas of the nation.—a return to a more sustainable and balanced housing market compared to the frenetic pace of the past several years,' said C.A.R. Chief Economist Leslie Appleton-Young. 'We’ve known that double-digit appreciation would eventually change when the underlying fundamentals change, which has been the case with expanded supply and rising interest rates.'"

"In a separate report covering more localized statistics, 72 percent, or 283 out of 393 cities and communities showed an increase in their respective median home prices from a year ago. C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in July 2006 was 7.5 months, compared with 2.9 months (revised) for the same period a year ago."

From CNN. "As the real estate market slows, sellers seem willing to try anything to close a deal. 'Incentives are all over the place,' says Salli Kirkpatrick, founder of a Sacramento area advertising agency that works with home builders. 'No closing costs, no payments for six months, $10,000 toward a built-in swimming pool. Things have gone berserk.'"

"One big developer will landscape the backyard and upgrade your appliances, if you're ready to purchase one of their $439,950 homes at Rancho Cordova in California. The Associated Press reported last week that a new San Diego condo development, Atria, was giving away plasma TVs and $5,000 home renovation gift certificates."

"David Seiders, chief economist for the National Association of Home Builders says 75 percent of the nation's builders and developers are offering incentives."

"'Lenders,' says Seiders, 'really frown on putting a new car in the garage or sending the buyer on a trip to Vegas.' That's because, with many buyers putting little down and prices in some localities stagnant or even falling, buyers could wind up with very little home equity, which can violate the guidelines or rules some lenders live by."

The Santa Cruz Sentinel. "Sales in Santa Cruz County in July were half the number of the boom period two years ago. Still, the median sales price for single family homes did not decrease. The July median was $768,750 compared to $760,000 in June."

"Steve Noren, who has sold real estate for 30 years, speculated that the median was skewed up by people in the million-dollar bracket. 'Last year, we had such a run on inexpensive property,' he said."

"Statistics from the Santa Cruz Association of Realtors show the drop in July home sales, compared to last year, was more severe for properties less than $900,000. The association figures show 104 homes under $900,000 were sold in July, compared to 144 last July. Sales above $900,000 totaled 39, compared to 42 a year ago."

"'No wonder the median and mean seem higher in a falling market,' said Noren after seeing the data."

"Noren himself is among the buyers waiting on the sidelines. 'I'm renting a nice house for $2,000 a month,' he said. 'It would cost $4,000 a month to buy a house that's not going to appreciate.'"