Some housing reports from the Twin Cities. "The housing market in the Twin Cities continued to cool in August, with the number of sales in the metro area dropping by 27.2 percent compared to a year ago. Trends in listings, sales and home prices also signaled that the market will continue to favor buyers, according to reports from Realtors' organizations."

"The Minneapolis Area Association of Realtors said that, in September, it expects there will be 8.12 homes on the market for every buyer. In the metro area, the number of closings in August dropped 27.2 percent compared to the same period last year. More dramatic declines occurred in Anoka and Sherburne counties, which saw decreases of 33 and 22 percent, respectively."

"Pending sales also dropped by 23.2 percent in August compared to a year ago. 'We still have more listings on the market right now than we've ever had,' said Jeff Green, president of the North Metro Realtors Association. 'But it appears that some sellers are deciding to wait a little longer before putting their home up for sale.'"

The Star Tribune. "When Debbie Tufts put her Eden Prairie house on the market in February, she figured she'd easily net $30,000 on the sale. Never did she imagine that, after three markdowns, she'd sell it for less than she owed and have to write a $4,000 check at the closing last week."

"'It's just a waiting game,' she said. 'It's a vicious cycle that you get trapped in and you don't know what to do.'"

"Buyers, (realtor) Sheri Fine said, 'feel like they have bargaining power and feel that they can do whatever they want.'"

"Although prices are flat and sellers are having to slash prices, sales are still relatively strong. Closed sales so far this year are down about 7.3 percent compared with the five-year average, a decline of about 3,000 transactions. But that's no consolation to Ken Iverson, who is trying to sell a $599,900 house in Menomonie, Wis."

"Like other sellers, he has resorted to incentives to help draw attention to his house. He's offering to give a brand-new fuel-efficient car and free gas for a year to encourage prospects from the Twin Cities. He said his 5,800-square-foot house, which has granite countertops and hardwood finishes throughout, is being sacrificed in an effort to downsize."

"'I think we just really need to consider any offers,' Iverson said. 'We're willing to negotiate.'"

"'Two years ago it was fun,' agent Jaso Simonson said of the current market. 'If a house was worth $180,000, you'd put it on the market for $199,000 and an offer would come in at $192,000. Now, if you think it's worth $180,000, you'd put it on the market at $179,900 and just pray for an offer.'"

"The market is recovering from a new-construction binge that has left builders trying to unload unsold inventory. During August, there was a seven-month supply of previously owned homes, compared with a more than nine-month supply of new houses. The inventory glut is creating opportunities that buyers haven't enjoyed since the late 1990s."

"Tufts, the Minneapolis woman who recently sold her house at a loss, is trolling the market with her agent in search of a duplex or fixer-upper that could be had at a bargain price. 'Money seems to be the only thing that talks now,' Tufts said. 'Because the price cuts are getting pretty aggressive.'"