The Modesto Bee reports from California. "New home sales have declined dramatically throughout the Northern San Joaquin Valley this year. New home sales were down nearly 59 percent the third quarter of this year compared with the same period a year ago in Stanislaus County, according to The Gregory Group."

"Sales were off 32 percent in San Joaquin County and 39 percent in Merced County. 'As a whole, we're not seeing a turnaround for 12 to 18 months,' predicted president Greg Paquin. 'Most projects are having to offer some sort of incentive to sell homes.'"

"Some of those incentives can be worth more than $100,000."

The Bakersfield Californian. "Local housing market observers are disputing a new report warning that Bakersfield is a bad place to invest in real estate over the next year or so. Four other Central Valley cities also made the nationwide list; Stockton, Merced, Fresno and Sacramento."

"Local house prices have definitely dipped and could drop further, real estate agent Robin Ablin said. 'Are (prices) going to go down to $125,000 like they were five years ago? That's never going to happen,' Ablin said."

Inside Bay Area. "Cash-out refinancings are at their highest rate in 16 years. Joyce Broder did a cash-out equity refinancing on her Daly City home in September to pay for improvements. 'I basically put it back in the house — most of it — and paid some bills off. ... I invested a portion of it also,' Broder said."

"A borrower who refinanced now wouldn't have to worry about home prices falling in the next couple years, said Andrea Lanier, a mortgage broker (in) San Mateo. 'Some people are refinancing now to take advantage of today's values,' Lanier said."

"Last month, Jill Stephens and her husband refinanced their Burlingame home to lower monthly payments so she could take some time off from work and stay home with their children. The Stephenses now have a less expensive interest-only loan with a fixed rate that lasts five years."

"'That gives us more monthly income so that I can stay home,' Jill Stephens said."

The Voice of San Diego. "The county's leading economic indicators sustained a sixth straight month of declines in September, attributed primarily to drops in residential building permits and consumer confidence."

"Alan Gin, professor of economics at the University of San Diego, reported sharp drops in residential building permits, initial claims for unemployment insurance and consumer confidence played large roles in the decline."

"'The thing's been trending down for six months now,' Gin said. 'It's more negative news for the county.' Gin predicts...a further weakening housing market and tumbling retail sales. 'Housing and real estate is one obvious place where you've got to look,' he said."

From KNVN 24. "If you own a home in the North State, you probably know that home prices are dropping. For nearly four months Claudia Sigona and her partner have tried to sell their home. They've gotten a lot of looks, but no offers. Sigona says 'the market just seems to be a little slow right now. we've had to reduce the price a couple of times, but we're hopeful.'"

"Around the couple's corner is Jensen Park, brand new homes with all of the frills. Twelve houses in the development still sit -- and on this day anyway, not one person came to this open house."

"'Greg Melton is another frustrated seller in Chico. 'At this point concern has turned to panic.'"

"Melton expected a quick sale. that was five months ago. Melton says 'I don't understand. it's a nice neighborhood, great location, cul de sac, park on both sides. I thought it would sell a lot faster.'"

"Melton and his real estate agent had the house sold, but the deal fell through when the buyer was unable to sell his house. In the interim, Melton bought a new house... so now he has two mortgages and the selling price of this one has gone down."

"Many home sellers we spoke to say they are panicking that they'll never sell their house for what they paid for it. Sherry Payne is a Chico Real Estate Agent. 'I think the last I heard we had about 800 houses on the market.'"

"Payne has sold real estate in Chico for 28 years. She estimates prices have dropped 20 percent from last year's peak. further declines could be coming. Payne says 'what has happened also is the fact that because they've come down they're getting lower offers, even lower than the prices they've leveled off to. so they've reduced the prices quite a bit.'"

"Payne says 'I think the buyers have a realistic view that in a sense that the market is going down. But I think they're also very nervous about making any type of offer or going forward until they see what really is going to happen.'"

"In other words, buyers are being picky... and they may get pickier. Notices of foreclosure are up dramatically in Butte County, and many financially-strapped sellers are desperate for an offer."

"Frank Hill is a flipper. But after he sells this Canyon Gates estate, his flipping days will take a recess. 'I think that just everybody is in a holding pattern to see how far and how low the prices of these homes are going to go.'"

"Frank has priced his gorgeous house below others in the neighborhood. His $579,000 dollar asking price includes $25,000 worth of furniture. 'We thought as an added incentive in this quote 'hard market' we would include the furniture too and maybe stimulate a buyer that way.'"

"Even so, veteran Chico realtor Sherry Payne says buyers are few and far between these days. Hundreds upon hundreds (of homes) are on the market and only wise sellers will succeed in unloading their piece of the american dream."

"Payne says 'for the seller I recommend keeping their house at a very, very marketable price, and even, yes, realistically, even a little bit low to catch the eye of that one potential buyer that's out there.'"

"Potential buyers should know that they have more choices, and thus, more negotiating power, than anytime since the mid-90's."