A housing report from the Tennessean. "Throughout much of what is considered the core of East Nashville, the rehabilitation market seems to have hit its peak. For the first time in five years, the area is experiencing a slowdown."

"With rehabbers routinely asking for more than $300,000 for their homes, many first-time home buyers are passing up the market, real estate agents, residents and investors say. 'It's gotten so expensive, people that are making $30,000 or $40,000 and can't pull the numbers,' said Eric Quiram, chairman of an umbrella group for East Nashville neighborhood associations."

"Investment groups are buying homes and renovating them on speculation. Many are pouring more money into the homes, with flourishes such as granite countertops and custom cabinetry."

"'Home prices have increased and the values have gotten so that there's more money you can spend on it,' said Lynn Taylor, owner of (a) East Nashville residential design firm. 'If you bought it for two-hundred thousand and it's valued at five-hundred thousand, there's more you can do.'"

"But the higher prices have made some homes harder to sell. Price reductions have become commonplace, especially for homes in which renovators have not chosen top-quality materials, say agents."

"'If there's a market that's booming in value, a lot of people are going to put their house on the market with a projection of where they think the market is going to go,' said agent Karen Hoff, who has worked in East Nashville for two decades. 'It takes them a couple of months to figure out that maybe their house is not worth that.'"

"Chris Weigel and his wife have been house hunting since moving to East Nashville two years ago. 'It's a real estate bubble, like a fake bubble,' he said of the housing market in the traditional East Nashville neighborhoods. 'They're trying to push the envelope so much that they're driving up prices.'"

The News & Observer from North Carolina. "As the rest of the nation struggles with a housing slump, the Triangle appears a bit of a haven for those selling homes. But a closer look at the market data and conversations with local real estate agents and homeowners suggest a softening of the local market."

"To sell their houses, homeowners and national builders alike are having to reduce prices, improve properties and offer incentives. The number of people in the Triangle who lowered the price of their homes in September so that they would sell surged 17.4 percent, compared with a year ago."

"In September, 3,845 homes in the Triangle MLS had reduced prices, or 35 percent of all homes listed. The number of resales on the market at reduced prices has increased significantly every month since June, when they were up 3.6 percent from a year before."

"'If there is anything holding them back, they may need to lower prices,' said Marti Hampton, (broker) in Raleigh. 'A year ago we weren't telling them that.''

"Potential buyers who have moved to the area from cities glutted with homes say they can't buy here until they can sell their old houses."

"Even older, more-established Triangle neighborhoods feel the heat from new projects. M. Ruth Little searched her 27607 zip code when she was selling her home in West Raleigh's University Park this summer. The search turned up several dozen new homes priced at more than $500,000."

"Little first offered her 2,750-square-foot home for $549,000 but ended up dropping the price twice before finally selling for $485,000. The architectural historian was eager to sell because she had bought a smaller house. But she also realized that the market had cooled."

"'I'd watched prices climb in the neighborhood, and, if the boom had continued, I might have gotten my [original] price,' said Little, a former residential broker. 'But I sensed it was slowing down.'"

"Ellen Dagenhart, a broker in Durham, said some sellers are doing more than reducing prices. 'They're also offering to pay buyers' closing costs, offering to leave appliances or give appliances, and we're seeing sellers offering a selling bonus to the selling agent,' Dagenhart said. 'We aren't seeing as many bidding wars or multiple offers. It's not the same market that it was, in many ways.'"

"Still, the only ones who might lose money are those who bought at the peak. The rest just need to adjust their expectations. Many saw neighboring homes fetch amazing prices and hoped to do the same."

''A lot of people held their houses off the market, waiting for it to peak to maximize the price,' said Bernard Helm, who tracks Triangle residential trends, but 'they waited too long. Lots of property has come into the marketplace that has unrealistic price expectations.'"

"Agents helped boost buyers' expectations because they could charge top dollar through this spring, and often got it, said Jill Flink, a top seller in Raleigh. 'Now the agents that are pricing these homes are being more realistic.'"

"Dan Lucas knows full well how new homes can hurt a homeowner's chances. Within five miles of his Cary home are 33 new homes priced from $150,000 to $250,000. Most offer some kind of incentive."

"When Lucas put his 3,600-square-foot home on the market in April, he asked $305,000. With surrounding homes selling briskly and a renovated basement, he expected a quick profit. Now, four price reductions later, the house is down to $285,000."

"Although Lucas doesn't expect to lose money on the house, which he bought for $147,000 in 1987, he is wondering how many more times he'll have to drop the price before the house sells. 'I haven't even had a bad offer yet,' Lucas said."

"Lucas has vowed not to cut his hair until he sells his home. It's already below his collar. 'I'd shave this mop in a New York minute if I could,' Lucas said. 'My mom sees me and says, 'I see you haven't sold your house yet.'"