Some reports from the northwestern US. "Home sales in western Washington fell for the fifth straight month in July. Brokers reported 8,496 sales last month, down 15 percent from a year earlier. Realtors report that the consistently rising inventory has been a major factor in the sales slowdown."

"Area-wide there are about 9,000 more listings now than at this time a year ago, NWMLS reported. Five counties (Island, Kitsap, Pierce, Skagit and Thurston) reported inventory increases of 50 percent of more from 12 months ago. At month-end, NWMLS brokers represented 31,910 active listings of single-family homes and condominiums, up 39.7 percent from a year ago. In June there were 29,856 active listings on the market."

The Seattle Times. "Home sellers spoiled by three years of record or near-record sales may have to lower their expectations. If the Puget Sound area's July home-sales numbers are any indication, homes might sit on the market longer."

"Sellers need to take care to keep their homes reasonably priced because buyers know the market is changing, said Michael Tenore. 'You can see the national trend is happening here to a lesser degree,' Tenore said."

"A slower market does have some benefit. 'You may find that it's less competitive,' he said. 'Maybe you don't have to do a pre-inspection or waive certain contingencies. In general, there's a little bit less pressure.'"

"Many first time home buyers in Seattle and King County are looking at condominiums as a way of getting their foot in the door of the real estate market. Developers are responding to the needs of first-time buyers, with more moderately priced condos located closer to jobs."

"'We recognize that there are a lot of higher-end high-rises and saw that the market might become saturated,' said Doug Daley, pCEO of Harbor Properties. 'It is hard to tell how long this cycle will last,' said Daley. 'We have seen the market flatten in some parts of the United States; we haven't seen it happen here yet.'"

The Olympian. "Thurston County home sales continue to show signs of slowing as the South Sound housing market crossed into uncharted price territory last month. 'It's a good market, but the fever is gone,' said real estate agent Eric Hjelm. 'I don't know if it will stay at that level,' he said about the $300,000 figure."

"Inventory levels also continued to increase in July, rising to 1,633, up from 1,031 last year. South Sound real estate professionals say there has been a noticeable shift in the market. 'The ratio of buyers to sellers has drastically flipped from the past,' said Chad Roraback, a real estate agent in Lacey."

"'The buyers haven't left the market; there is just so much more to choose from,' he said."

"In Seattle's hot real estate market a growing number of people are losing their homes in foreclosure. In Washington state the foreclosure rate is up nearly 30 percent over last year."

"Why are more people losing their homes? Experts say interest only and adjustable rate loans are enticing buyers into trouble. 'So they can get into their dream house when maybe they should have waited a few years when their income went up and not taken these risks,' said lender representative Karen Gibbon."