The Record reports from New Jersey. "John and Susan Scerbo put their five-bedroom Ramsey house on the market more than a year ago, expecting to sell within a few months. But the house is still for sale, even after the couple cut the asking price from $695,000 to $649,000."

"'We got caught in a tough market,' said John Scerbo. 'Buyers are slow to act, and there's enough inventory out there that they can take their time looking.'"

"'A lot happened during the boom, and we have some paying back to do yet,' said economst David Seiders."

"(Brokers) Karl Kern in Wyckoff and Mark DeLuca in Teaneck both say prices in the Bergen County area dropped about 5 percent in 2006. Both said another drop of 3 percent or so is possible in '07. 'Inventory is still very high, and inventory puts a whammy on prices,' said Kern."

"Tough as the softer prices may be on sellers, they come as welcome news for buyers. 'You can drive a pretty good bargain,' said Bob Walters, chief economist for Quicken Loans."

"Walters predicts that prices will remain soft for 2007 and 2008. Kern has a similar view. 'I think it's the nature of the cycle of real estate that we're not going to have a boom again for a long time,' Kern said."

"The housing slowdown has also had a big impact in the new-construction market, where activity is at the lowest level since mid-2000. Reflecting builders' wary mood is Hovnanian Enterprises Inc. of Red Bank, the state's largest home builder, which was forced to cut prices in many of its communities in 2006."

"Hovnanian recently dropped plans for two North Jersey projects: a 372-unit development in Mount Olive and a 288-unit development in West Milford. In all, it walked away from $141 million in land deposits company-wide in the fourth fiscal quarter."

"The company has been forced to scale back construction in the face of a wave of cancellations by prospective buyers, many of whom can't sell their current homes."

"Ara K. Hovnanian, the company's chief executive, said until contracts pick up, 'we are continuing to manage assuming that current conditions remain with us for the foreseeable future.'"

The New York Daily News. "The number of city foreclosures jumped 18% in the last half of 2006, with as many as 100 homes going on the block each week in both Brooklyn and Queens, according to Crain's New York Business."

"'The last time I saw it this bad was in the early 1990s,' Jessica David, president of Profiles Publications."

"'The [lending] industry is exploiting customers' ignorance and seizing the opportunities offered by the skyrocketing real estate market,' said Sarah Gerecke, chief executive of Neighborhood Housing Services of New York City."

"Staten Island homeowner Leone John said she worried that the $280,000 home she bought in 2004 was more than she could manage. But a two-year freeze on the interest persuaded her to take the plunge. Now her payments have jumped 30%. That hike, along with other unanticipated expenses, has put her behind in her payments."

The New Haven Register from Connecticut. "Both buyers and sellers are getting an early jump on the spring housing market. 'The demand is there,' said (broker) John Cuozzo in Hamden., and sellers have learned that, in order to sell, they must seek a lower price than they likely would have fetched last spring. 'The asking prices seem to be more realistic; 2006’s expectations were rather grandiose.'"

"The market has returned to more normal levels, meaning buyers should see smaller price tags attached to homes this year, said Donald Klepper-Smith, chief economist at DataCore Partners in New Haven. 'They’re going to be down from the lofty levels of 2006,' he said. 'It’s unrealistic to expect that housing market to go on forever. What we have now is a normal correction in the cycle.'"

"Donald Williams of New Haven plans to put his two-family home on the market in the spring so he can buy a smaller home in the area. He expects it to sell relatively quickly at his $210,000 asking price."

"'I think it’s worth more,' he said, but he plans to ask that price in order to sell as quickly as possible. Williams also said he will spend the coming weeks doing yard work and making other improvements to the property in order to help it sell."

"On average, homes in Greater New Haven are spending about 120 days on the market, a trend that is likely to continue through the spring, said Paul Gradwell, president of the Greater New Haven Association of Realtors. And as sellers are getting more realistic with their asking prices, he said, buyers are taking notice and stand to benefit throughout the spring. 'They’re being more selective,' he said."