The Record Searchlight reports from California. "Redding ranked 16th on a list of the top 30 U.S. metropolitan markets expected to suffer the sharpest declines in home prices. The gloomy forecast presents one of the starkest views yet of the housing slowdown that has been gathering force in recent months, but some north state real estate agents see it as a buying opportunity."

"Redding’s median price for a home is forecast to fall by 11.8 percent. 'That’s about right,' Ron Largent, agent in Redding, said Thursday. He thinks prices could fall 'another 10 percent' from where they were a month ago before leveling out. 'This is an excellent time for buyers,' Largent said."

"Home sales slowed and prices fell in Shasta County in August. The median sales price was $245,000 compared with $269,000 in July and $285,000 a year ago, according to Dataquick."

"Some homes are likely to see sharper price declines, said veteran Redding real estate broker Rob Middleton. 'Houses that have a bad floor plan or that are on a busy street are apt to suffer more,' he said."

"One reason Redding’s prices are softening is the cooling ardor of investors. A year ago, Redding led the nation in the percentage of homes sold to investors, 22 percent, according to LoanPerformance. Through May of this year, 15.4 percent of homes were bought by investors. That was still nearly double the national average of 8.9 percent."

"The forecast of a price decline 'sounds like old news, or at least we’re right at the end of it,' said Greg Lloyd, broker in Redding. Lloyd is also president of the Shasta Association of Realtors. 'We probably peaked out very early this year and I would suspect we have hit the valley floor as we speak.'"

"There are about 2,000 homes now on the market in Shasta County, Largent said. Builders are cutting prices and offering incentives such as free backyard landscaping, pools, 100 percent financing and a chance to win a car."

The Whittier Daily News. "A research firm predicts the first decline for an entire year in home prices since the Great Depression of the 1930s, but local industry officials have a more tempered view."

"Leslie Appleton-Young, chief economist for the California Association of Realtors, said California has already weathered six year-over-year declines in its median home price, beginning in 1990 and running through 1996. 'The biggest decline was 4.5 percent in 1993,' she said. 'The median price went from $197,030 to $188,240. California has had a very different experience.'"

"But Appleton-Young doesn't believe the current transition in the market will be over quickly."

"She said there will be a slowing economic growth because of the downturn in housing, but it won't turn into a recession. 'Is it possible? Sure,' Appleton-Young said. 'But is it probable? I don't think so.'"

"Steve Johnson, director of Metrostudy Southern California in Riverside, said California's housing bubble isn't going to burst anytime soon. 'This is not a repeat of the 1990s,' he said. 'That was a perfect storm because you had fires, floods, riots and a huge decline in aerospace spending combined with defense cutbacks and base closings.'"

"Robert and Marcia Mosqueda always wanted to live in Whittier. Their dream came true about nine weeks ago when then moved after living in unincorporated Los Nietos for 17 years."

"But the move came at a price. They bought a 'fixer-upper' in the Whittier's Uptown area for about $610,000. It's given them a mortgage of about $4,500, double what they were paying, and it's more than 30 percent of their income. 'It's a big sacrifice, but it's worth it to have peace of mind,' Marcia Mosqueda said."

"Broker Patrick Hart said the rising prices shown in the census data may be starting to go the other way. 'I don't expect we'll lose more than 20 percent,' he predicted."

"Still, declining prices may cause problems should there be foreclosures, he said. The Consumer Credit Counseling Services of Orange County is seeing more people coming in with financial problems, said Kelly Rogers. 'We can't say it's because of housing, but the numbers are up,' Rogers said. 'People are starting to feel the money pinch.'"

The Orange County Register. "Orange County's economy will keep growing next year, but not much, Wells Fargo Bank's senior economist predicted Thursday. 'The good news is, I think Orange County will be able to avoid a recession, but just barely,' Scott Anderson told a group of bank guests."

"Anderson attributed much of the economic drop-off over the next year to the housing slowdown. High prices and affordability challenges will continue to hamper the local housing market, he said. 'I think there will be one year (of price) decline next year, but I'm not projecting any big collapse,' Anderson said."

"Irvine-based homebuilder Standard Pacific Corp. has notified employees that it is eliminating dozens of jobs amid reports of lagging home sales across the nation. Company officials couldn't be reached to confirm the layoffs in at least three Southern California divisions and one in South Florida."

"The company's finances have been hit this year by a slowdown in new home orders and rising cancellations, fueled by a backlog of unsold homes in the existing-homes market, company officials said."