A housing report from the New York Times. "In the last few years, renowned architects and enterprising developers have rushed to put their stamp on Manhattan with contemporary condominium buildings that have seemed far more inventive than the staid old co-ops of the Upper East Side. But now, they are looking at the horizon and fearing that there will soon be a glut."

"There are currently 28,258 new condominium units either under construction or being planned in Manhattan, according to Cushman & Wakefield. Real estate experts do not believe that all of these projects will be built, or at least built as condos."

"'I’m getting five calls a week from people who own sites and want to sell them,' says Michael Forrest, who works in the New York office of a real estate investment brokerage. 'I’m surprised at how many developers are running for the hills.'"

"Real estate brokers are advising developers to turn some of these projects into anything other than condominiums. And some major banks that lend to condo developers are cutting back on loans for proposed projects or for land that developers want to buy."

"The developers of a condo conversion project at 485 Fifth Avenue (41st Street) returned deposits to prospective buyers and sold the project to the Global Hyatt Corporation, which will convert the office building into a hotel. The Related Companies has turned seven apartments in its new 39-unit building called Astor Place into rental apartments."

"Still, the inventory of unsold Manhattan condos has jumped by more than 70 percent in the last year. As of Oct. 31, Manhattan had 4,115 condos available for sale, compared with 2,381 a year earlier, according to the Miller Samuel appraisal company."

"For the most part, (developer) Veronica Hackett said, she says no to the weekly calls and e-mails she gets from other developers trying to sell her their problematic condominium projects. 'I think today people are having enormous difficulty getting their costs in line,' she said."

"Developers are considering other sites only if they can profitably use them for something other than condominiums, said Robert Knakal, the chairman of Massey Knakal Realty Services Inc.. As he put it: 'Some developers are not willing to build condos anymore unless they really get a great deal on the land.'"

"Credit Suisse First Boston has become so cautious that it is generally not lending to developers who want to build condos on midblock sites in Manhattan or on sites that do not have a supermarket or dry cleaner within three blocks. 'We’ve turned down several projects based on their location, whether it’s a certain part of town or a certain location on the street,' said Robert Brennan, a managing director."

"Some real estate brokers are encouraging uneasy building owners to abandon the condominium market entirely. Mr. Forrest of Marcus & Millichap was hired last month to advise the seller of a 20-story office building five blocks north of Madison Square Park who was considering selling the building and marketing it for potential condominiums. But Mr. Forrest quickly saw that there was too much competition from other projects. 'I’m telling him to sell it as an office,' Mr. Forrest said."

"In the financial district, Mr. Forrest finds few buyers for building sites. One of his clients, a developer who was buying a five-story office building on Stone Street, wanted to sell it before he even closed on it. After six months of shopping the location for $16.5 million and not getting offers he liked, the owner decided to convert it to condos himself, although he’s entering a neighborhood heavy with inventory."

"'He paid a price that won’t allow him to keep it simply as a five-story commercial building,' Mr. Forrest said. 'He will lose money if he doesn’t build.'"

The East Hampton Star. "The fact that the number of sales on the South Fork has declined, along with the overall volume in dollars, does suggest a market in transition. 'Prices have gone down a little,' said Susan Breitenbach, a senior VP with the Corcoran Group’s Bridgehampton office."

"The number of sales of houses priced between $1 million and $2 million went down 50 percent this quarter, and sales of houses priced between $2 million to $3.49 million went down 32 percent. The number of sales of 'entry-level' houses (those priced under $500,000) decreased by 46 percent, according to (broker) Judi Desiderio. 'I attribute it to a sheer lack of inventory, certainly not a lack of interest,' she said."

"HREO.com, which deals in East End real estate, lists 5,528 houses for sale. Of those, 2,628 are priced between $1 million and $3.5 million."

"A majority of improperly priced inventory sits on the market. It is a situation that has, in some cases, led to deep price cuts. 'A flawless 5,000-square-foot new traditional on 1.4 acre, well landscaped with a pool, started at $3.2 million and is now down to $2.4 million,' said Ms. Desiderio."

"'After January, prices will increase,' Ms. Breitenbach predicted. 'The market is only going to get better.'"

"In some parts of Westchester, the market is clearly in a downturn, if not a full-blown real estate recession. In most towns, villages and cities, real estate agents report flagging sales and increasingly frustrated sellers. Homes are staying on the market longer, inventory is building and buyers are biding their time."

"At smaller in-fill projects, like the new town houses for sale on the south side of New Rochelle on Pelham Avenue near the Long Island Sound, none of the 10 units at AnnMar Gardens have sold since they went on the market early in the summer."

"Agent Rose Bulfamante said that because of the slow market, the developer was considering dropping the asking prices, $779,000 to $849,000, on the three-bedroom units and offering the incentive of a year’s membership at a local beach club."

"'Even a community like Bronxville doesn’t exist in a vacuum when it comes to this market,' broker Leah Caro said. 'Some places may be more insulated than others, but only a rare few are altogether immune.'"

"Sean and Lynn Leary, whose vintage 1920s colonial in Pelham Manor has been on the market since July, many have had to adjust their sights. The Learys’ house came on the market for $1.289 million and sat without offers throughout the summer and early fall. The couple have since lowered the asking price to $1.199 million, and Mr. Leary has torn down the original two-gar garage and is building a new one in its place."

"'Some people say it’s an ego thing with sellers not wanting to accept lower offers,' said Mr. Leary, a commercial real estate broker, 'but that’s not really the case, at least with us. It’s more about sellers like us who are just trying to understand what’s happening. Sometimes, it feels like we’re trying to catch a falling knife. We’re trying to anticipate what’s going to happen next.'"

"'It’s pretty clear to me that nationally we’re seeing a pullback in the real estate market. In some places, it’s truly a burst bubble; in other places, like in Westchester and Putnam, it’s more like a correction,' said P. Gilbert Mercurio, CEO Westchester County Board of Realtors in White Plains."