The Boston Globe has this update from Massachusetts. "Home prices in Massachusetts fell 3.5 percent in July, the largest decline in 13 years, as the slowdown in the real estate market finally led sellers to cut their prices. That decline was the biggest since the state's housing market was struggling in the wake of the banking woes of the early 1990s."

"The number of condominium units sold in July tumbled by 21.4 percent, driving prices down 4.1 percent, the biggest decrease over the course of a year since December 1998."

"'It's a bad year,' said Karl Case, a Wellesley College economics professor and housing-market specialist. 'Demand has dropped significantly, inventory is building, prices are falling, and less income is being earned. We've been saying it's going to happen for so long; it's happening. It's going to be painful.'"

"In Massachusetts, price declines add to the confusion among buyers afraid of overpaying, said Mark Gibbons, an agent in Stoughton. 'There's concern they don't want to lose any equity if they want to sell a couple years down the road,' he said."

"Nancy Richards, an agent in Belmont, said sellers' attitudes have changed noticeably from last year, when they were 'still clinging to hopes' of selling at record prices. This year, 'they're taking offers that are lower and are happy about it.'"

"But Newton agent Rona Fischman said many are 'still in denial.' The steep drop in July sales 'tells me we're in the first year of the price declines,' said Fischman. 'Sellers who really have to sell are waking up and smelling the coffee. There's more coffee coming.'"

The Bedford Minuteman. "You can’t drive through town without seeing a 'For Sale' or 'Open House' sign and they represent a statewide trend. Housing inventories are at an all-time high and homes are staying on the market longer."

"Patricia Gartland, a realtor in Lexington and a Bedford resident, said that even communities that have had historically robust home sales have been affected by the ongoing downward shift in the market. The number of homes for sale in Bedford has more than doubled, with 116 on the market up from 57 at this time last year, Gartland said."

"While sales continue to sag, Gartland said she is not ready to declare that the so-called 'bubble' has burst. 'I don’t subscribe to the bubble theory. I do believe there has been a correction from the crazy numbers we had been seeing for the past several years,' said Gartland, who has been in the real estate business for six years. 'The market tends to go in two to five-year cycles, so there could be some further correction, but there’s no need to be alarmist about it.'"

"Housing prices in Bedford have declined dramatically. According to Gartland, the average price of a home in Bedford has fallen to $633,000, down from approximately $700,000 at this time last year. Gartland said that while prices may finally start to catch up with inventory, buyers should not expect a large-scale depreciation."

"'We’re coming off a time when the market was really hot and sellers had no trouble getting their asking price. But thing have cooled off recently and I think sellers are starting to come around and recognize that it’s a different market. So you may see prices come down a little more,' Gartland said."