The Recordnet reports from California. "After some hope that existing-home sales were on the rise, the market slowed again last month, leaving some brokers and agents expecting a long downturn. The median sales price also slipped for the third consecutive month in April. 'Dead' was how Mike Collins, of Century 21 Collins, Stockton, described to market these days. 'It's just not coming back. This might be as bad as I've seen it.'"

"He said his agents reported maybe six lookers stopping by to check out any of the dozen open houses over the weekend. He suspects that many would-be buyers still believe home prices are still sinking."

"Vanda Martin, real-estate agent (in) Stockton, said homes are still selling, if sellers are willing to start out low or cut asking prices. 'The consensus about the market right now is it's all about the price,' she said. 'It's not a bad market, but there are just overpriced listings right now.'"

The Sacramento Bee. "First it was houses. Now it's cars. The sales decline was particularly bad in California and Florida, two states feeling the worst of the housing downturn. That was no coincidence."

"'Suddenly your homes aren't selling; the last thing you're going to do is go out and buy another truck,' said Ron Pinelli, president of a market research firm."

"'Nobody can pull money out of their houses so nobody has the cash to buy a new car,' said economist Chris Thornberg. 'That was the game.' Thornberg said there's evidence the economy is tailing off. 'Consumers have finally run out of steam,' he said."

The Merced Sun Star. "Skyrocketing foreclosures, dropping home prices and plunging real estate sales are a 'major concern' for Merced's economy, according to a new report. Of the six Central Valley counties analyzed in the report, Merced stands out as the area hit hardest by the housing slowdown."

"Economist Lon Hatamiya said the high number of homeowners with subprime mortgages is likely a major contributor to Merced's extreme downturn. 'The predominance of subprime lending is coming home to roost in the Central Valley and it's starting to be a point of concern that we have to watch very closely,' Hatamiya said."

"In February, Hatamiya and fellow economist Tapan Munroe presented their 2007 predictions for Merced's economy. They stopped short then of calling the housing slowdown a 'bust,' instead referring to it as a 'souffle with the air slowly leaking out.' Hatamiya still stands by that assertion."

"'In certain parts of the state, we're seeing a depressed market, especially in the Central Valley,' Hatamiya said. 'Statewide, prices have gone up so I'd hate to characterize it as a bust. It's more of a correction.'"

"Merced's median home price stood at $302,750 in March, down from $372,500 in March 2006, according to figures from DataQuick. Merced...sales dipped by 127.3 percent compared with February. 2007."

"With sales in a slump, building activity has nearly come to a halt, according to data from the city's building department. So far this year, residential builders have pulled 83 permits in the city of Merced, compared with 369 during the same period last year."

The Fresno Bee. "Prices continued to fall in Fresno, where the median price of a new house declined 3.6% from February to $307,490. That was a 9.6% dip from March 2006."

"Housing analyst Patrick Duffy said some builders are still saddled with large numbers of unsold homes. Stricter credit standards and the diminishing use of 100% financing and stated income loans also are cutting into sales."

"'Depending upon the location and price range, a tighter lending environment ... is impacting 10% to 30% of sales,' Duffy said."

"Bakersfield reported transactions were off 46.7% from March 2006. Hanford and Madera...were off 24.5% and 39.3% respectively from year-previous numbers. New-home sales in Visalia fell 38.2% for the year."

"After five years of robust sales, the area, said said Steve Lutton, regional VP of Lennar Homes, has slid into a deep slump. 'Every day is like Halloween,' he said. 'It's scary out there.'"

The San Bernardino Sun. "Not many people were buying new homes in March, and those who were generally got pretty good deals. That's the word from the California Building Industry Association, which released its March 2007 sales and price reports."

"Statewide, sales were off 37 percent in March from a year ago. The median price of a new home sold in California in March was $449,227, slightly less than a year ago."

"The Inland Empire has a large amount of inventory on hand, putting sellers in a tougher position. 'Builders aren't in the same position they were in the 1990s, when supply got way ahead of demand,' said Jack Kyser, chief economist with the L.A. County Economic Development Corp. 'They were better about building to order this time, but they still got a little ahead of themselves.'"

"With a large amount of inventory on the market, and entry-level loans much more difficult to get, the market is certainly somewhat stagnant."

"'I don't think we will see the market start to sort itself out until 2008,' Redlands-based regional economist John Husing said. 'There is too much inventory on the market right now and we're still waiting to see what happens with some of these foreclosures.'"

The Daily Press. "Sales of single-family homes in the Victor Valley slipped in April as prices remained relatively stable. Closings fell compared to the previous month and year, dropping 19.6 percent from March and plunging 47.1 percent lower than in April 2006, according to data from Century 21 Rose Real Estate."

"'Sellers still are not willing to reduce prices,' said Dana Gordon, a broker in Hesperia."

"The combination of stable prices and falling sales resulted in a dramatic increase in unsold inventory, which ended the month 50.9 percent higher than in April of 2006."

"'We saw fewer sales last month because buyers are still waiting for the market to hit the mystical bottom,' said Gordon. 'If you want to sell quickly, you might consider knocking 10 percent off the price,' he added."

From Reuters. "Twice a day, would-be real estate moguls gather on the local courthouse steps for the latest can't-miss opportunity in California's land rush: the foreclosure auction. Veterans and 'newbies' crowd around auctioneer Gary Oberdalhoff as he lists a property whose owners couldn't pay the mortgage, one of thousands to go on the block in this sprawling, arid region 50 miles east of Los Angeles."

"'Do I have any opening bids?' Oberdalhoff asks. It might be a scene straight out of the Great Depression, if you ignore the Bluetooth wireless headsets."

"During the first three months of the year, 1 in 68 houses in the Inland Empire was in default or foreclosure, a rate surpassed only by Detroit and Las Vegas, according to RealtyTrac."

"'This is ground zero; this is where it's all happening,' says Juan Cruz. Cruz has his eye on a four-bedroom house in nearby Corona offered at $131,000. That figure represents the unpaid balance on the previous homeowner's foreclosed mortgage."

"When the bidding starts, Cruz has plenty of competition. The speculators bid steadily in hundred-dollar increments. Twenty minutes later the house is sold to a heavyset man for $286,000."

"That's less than it would have fetched last year. But veteran home buyers have grown more cautious as the market has cooled."

"More houses are on the market now than at any time in the past eight years, according to the Multi-Region MLS database. At the current pace it would take more than 13 months to sell them all, compared with 7 months at this time last year."

"Bargains are scarce on the auction block these days. Houses purchased in the last two years are often saddled with steep mortgages that can exceed the house's market value. Sales are down from last year and prices have risen less than 1 percent, according to DataQuick."

"'Now your house has to be underpriced and spectacular to sell,' says foreclosure investor David Schultheiss."