The Associated Press reports from Pennsylvania. "After years of gains, the Pennsylvania real estate market decelerated in earnest this year as buyers balked at paying ballooning home prices and speculators left the market. A growing economy, low mortgage rates and new types of loans had fueled a decade-long housing boom, but declining affordability has put a dent in the market, especially in eastern Pennsylvania."

"When Tim Schieber bought a luxury town home a year ago without first selling his house, he didn't think it would be hard to find a buyer for the Bucks County stone farmhouse. But it would take 15 months, a $190,000 price cut, $16,000 worth of remodeling and a new real estate agent before the Schiebers were able to sell their 3,600-square-foot home near Doylestown."

"'The days when you put a house on the market and it sells (right away) - those days are gone,' said the business owner. 'We just sat back and it got really tough.'"

"'There's no more flipping,' said Austin Jaffe, chairman of the real estate department at Penn State University. 'It's not the same psychology that you build a house and by the time you're done with it, it's time to flip it and do your next deal. There is no bubble bursting here,' Jaffe said."

"The hot demand for homes in northeastern Pennsylvania had been partly fueled by buyers who were shut out of the more expensive New Jersey and New York markets. 'People are willing to travel, to commute a great distance in order to get cheaper housing. That has bolstered the northern part of Pennsylvania,' said Celia Chen, director of housing economics at Moody's Economy.com."

"One of the most expensive markets in the state remains downtown Philadelphia, even though prices have fallen 10 percent to 15 percent this year. Overall, downtown seems to be recovering from its slump, when 'real estate people were slitting their wrists,' said (broker) Allan Domb."

"Prudential Fox & Roach, whose firm handled the Schieber home sale, said buyers have been returning to the market in the past month, attracted by lowered home prices. 'The buyers are coming back,' said Alan Reburn, VP at Prudential in Devon."

"Still, it took some creative marketing to get a sale for the Schiebers. The realtor put the house on a historical homes tour. It sold for $650,000, far below the family's original $840,000 asking price."

The Toledo Blade from Ohio. "When Ben Konop decided he wanted to live downtown, the single lawyer was able to bag a roomy two-bedroom condominium for under $150,000 last year. Mr. Konop paid $300 less than the original purchaser had three years previously when the warehouse was newly converted."

"He recognizes that, given the volatility of the downtown market, he may not recoup his purchase price when he sells. 'I didn't buy it for investment purposes,' Mr. Konop said. 'I realized I was something of an urban pioneer down here. But I think the condo has the potential to be a good investment.'"

"Like residential resale markets elsewhere in Toledo and in most areas of the country, downtown could hardly be characterized as red hot."

"A small sampling by The Blade of recent sales of downtown condos and lofts found that they brought an average of 6 percent more than the original purchase price. But one downtown seller, who spoke on the condition he wasn't identified, said profits can be illusory. Official records suggest he made $8,000 on his sale. But he said he lost money because of upgrades and other expenses he put into the unit when he bought it new."

"The downtown area has about 200 condos and lofts in complexes and scattered sites, said Kathy Steingraber, executive director of the Toledo Warehouse District Association. Although that number is not large, it is up considerably from 2000 when few such units had been built."

"Trent Thompson has been trying for eight months to sell his one-bedroom 1,600-square-foot unit at River West Townhomes on South St. Clair Street. Although he and wife are disappointed, they don't blame the downtown market."

"'A lot of people are sitting on houses for eight months throughout Toledo,' he said. The two-year-old unit s listed at $198,000. They bought it two years ago for $195,000."

"Agent Cherie Posadny agreed that, like real estate elsewhere, the downtown resale market is hurting. One owner accepted $145,000 for a unit he bought new for $154,000."

"'People who buy are thrilled about living downtown. I think we have so many available condos with unsold units at the Bartley Lofts project. We don't have enough buyers who are looking to live in an urban setting,' she said."