The Tribune reports from California. "Home builders in San Luis Obispo County are scrambling to lure buyers. Incentives are being offered at a pace not seen since the early 1990s when the housing market suffered a serious downturn. Home sales are down 35 percent year-to-date. Inventory levels are high, with 2,514 homes in the county for sale and an additional 342 in escrow."

"On top of slow sales, skittish buyers are canceling already-signed contracts, a phenomenon not seen in recent years."

"Homebuyers aren't the only ones getting nervous. In July, home builder Trimark Pacific backed out of a deal to develop 132 condo units that were expected to be priced in the $400,000 range. 'They walked away from a substantial deposit,' said (developer) Peter Laughlin."

"'It's not the hot market of recent years, but we think it's normal,' said Jerry Bunin, at the Home Builders Association of the Central Coast. 'Home building in the county is still not enough to meet demand.' Bunin added: 'However, we now have homes that are waiting to be sold. Builders are offering incentives to keep sales going at a steady pace.'"

The Hollister Free Lance. "Some sellers who saw their neighbors' homes sold within days are now becoming frustrated at the amount of time the process is taking. 'They're looking to the agents and saying, 'Well, where are the buyers?' said (realtor) Jack Kirk Jr."

The Valley Voice. "Housing market is tough on builders and home sellers and now banks too are seeing dramatically fewer loan applications. 'We used to make 20 to 25 loans a month and now we are down to 1 or 2,' says Visalia Community Bank chair Tokkie Elliott."

"Realtors and homeowners are blaming the home builders for building too many new homes. Inventory of existing homes in the Visalia MLS is approaching 2000, about four times what it was a year ago. 'Our inventory here and in Fresno MLS is the highest it has ever been,' says Brad Maaske, a local realtor. Maaske suggests competition with the builders by offering incentives."

The Sacramento Bee. "With work already well under way on his twin 54-story condominium and hotel towers, developer John Saca is obtaining an $11 million subsidy from the city and closing on his construction loan."

"A few months ago, Saca began negotiating with the city for a subsidy, something he said he had previously viewed as 'a last resort.' 'We absolutely need it,' he said."

"With $100 million in construction contracts signed, there's no turning back, Saca said. 'It will get built; it's getting built. The question is whether John Saca makes any money at the end of the day. I could go through all this and end up making less money than I would have building a little Walgreens on the corner,' he said."

The LA Downtown News. "Standard Pacific Corp. announced last week that it is backing out of the Axis at Union Station condominium project. 'With delays to get buyers into the building and the softening market, we came to the conclusion that we would not go forward with this project,' said Steven Ross (of) Standard Pacific."

"Reg Delponte said that the project is already starting to lease units as rentals. Occupancy will begin within a month. 'We always thought that Downtown needed more rental inventory,' he said."

The LA Times. "Sobered up from frenzied exuberance over last year's housing gains by this year's declining sales, price reductions and increased housing inventory, a growing segment of Southland buyers are waiting on the sidelines for a significant downshift in prices."

"And they appear to have a reason to wait. DataQuick Information Systems reported that the Southern California median price slipped (and) the number of sales dropped. With an estimated one-third of Southland properties currently 'wildly overpriced,' according to John Karevoll at DataQuick, patience could be a home shopper's best virtue."

"'If you're a buyer, there's no hurry at all,' said Edward Leamer, of the UCLA Anderson Forecast. 'Prices are going to be a little weaker a year from now, and there'll be more listings and more choices.'"

"Karevoll said there are many sellers stuck in a get-rich-quick fantasy. 'You've got all kinds of people trying to gain the peak of the market by putting properties on the market at fantasy prices.'"