The Journal News reports from New York. "If there is a housing bubble, fresh data suggest that in parts of the Lower Hudson Valley, at least, it may not so much be bursting as perhaps slowly deflating. The data showed fewer homes sold in the quarter, with 459 deals closed, down 20.3 percent from 576 a year ago. Inventories rose, too, with 1,558 homes available for sale, an increase of 40.4 percent above last year's level of 1,110."

"'We're seeing what we've been hearing all along - there's a decided softening in the market,' said Ann Garti, chief executive at the Greater Hudson Valley MLS. 'Prices have risen to the point where there's just a finite number of buyers,' she said."

"This is the highest number of unsold homes in years, said Roberta Bangs, president of the Rockland County Board of Realtors. 'When upper-end-priced houses are just sitting, it makes the stats look worse than they actually are,' Bangs said."

"The price of single family house in Rockland County fell 3.8 percent in the third quarter, as the region's slowing housing market forced sellers to reduce prices."

"Median prices for condominiums fell at more than twice the percentage rate of single-family houses, dropping 7.9 percent to $285,493 from $310,000 a year ago."

The Record Online. "Local Realtors say homes continue to sell, but buyers are more selective and have more bargaining power. In Orange County, the inventory of unsold homes has doubled in the past four years."

"'I'm seeing offers coming in $20,000, $30,000 below asking price,' said (broker) Paula Meloi in Port Jervis. 'What's selling is the best-priced property on the market, whether it's in a low (price) category or a high category.'"

The Long Island Business News. "Dragged down by energy costs and an ebbing housing and construction market, Long Island’s economy will head into a mild recession next year, according to a report."

"What’s more, Long Islanders who have tapped home-equity loans will also have far less money to spend next year because rising interest rates have depleted the refinancing market, according to the Center for Management Analysis at the C.W. Post Campus of Long Island University."

"The report’s author, Thomas Conoscenti, a respected economist who also forecasts Suffolk County government’s sales-tax revenue, also notes that the construction sector on Long Island is beginning to show signs of shrinkage, an important development since the industry accounted for 20 percent of the Island’s employment growth in the last year."

"'Weakness in the housing and construction industries will pull down the rest of the economy in 2007,' according to the report."

Inman News on Connecticut. "The statewide median sale price of single-family homes in Connecticut fell 0.9 percent and single-family home sales dropped 21 percent in August compared to August 2005, according to The Warren Group, a real estate and financial data company."

"It was the first time since 1998 that the statewide median single-family home price dropped. The 21 percent drop in sales was the largest since 2000."

"A total of 3,875 single-family homes were sold in August 2006 in the state, which is the lowest sales figure in August since 1995. Statewide single-family home sales have dropped 11 straight months and 17 out of the last 19 months dating back to February 2005, The Warren Group reported."

"Condominium sales in August dropped 10.8 percent compared to August 2005, with 1,557 units sold. Condo sales have fallen 10 straight months."

"Timothy Warren Jr., CEO of The Warren Group, said, 'Home sales have been falling for well over a year, and now we're seeing sale prices starting to fall. As we've seen in Massachusetts, where prices are now falling 5 to 10 percent from year-before periods, buyers are taking their time and driving hard bargains. We expect to see more of this in Connecticut over the next few months.'"

"Single-family home sales have dropped in each of Connecticut's eight counties during the first eight months of 2006. Fairfield County continues to experience the steepest decline, with sales dropping 22 percent for the year-to-date period and 29.6 percent in August."

The Hartford Courant. "For the first time in eight years, the median sales price of a single-family home in Connecticut fell, a sign that declining sales and more homes on the market may be starting to pull down prices."

"Three counties, Fairfield, Hartford and Windham, saw declines in the median sale price of condominiums. The declines ranged from 10.9 percent in Fairfield to 0.6 percent in Hartford. Hartford County saw its median sale price dip to $179,000 from $180,000."

"Overall, sales of single-family homes in Connecticut in August fell 21 percent. It was the biggest decline in six years. 'That doesn't surprise me,' said Tom Abbate, a real estate agent in Middletown. 'Buyers have a lot more choices now. There are many more homes on the market.'"