The Tribune reports from California. "Sales of San Luis Obispo County homes slipped 6.4 percent in June year-over-year, but that was a significant improvement over the 30 percent drop registered in May, according to the latest information from DataQuick. However, it was the slowest June for home sales—a month that historically enjoys strong activity — since 1996."

"Meanwhile, the overall median home price fell 9.4 percent, to $530,000 from $585,000 in June 2006. 'The overall trend in (San Luis Obispo County) has demonstrated a bit of a correction,' said DataQuick analyst Andrew LePage."

"The median price for resale detached homes —which constitute the bulk of all home sales, was $569,500, down 4.6 percent from $597,000 the prior June."

The Fresno Bee. "Home sales in Fresno County fell to a 10-year low in June as the real estate market continued to struggle, (Dataquick) reported. Prices also continued their decline, falling 12.2% from a year ago to a median of $276,500 in Fresno County. Tulare County's median of $231,750 was a 12% drop from June 2006."

"The prices are staying low in part because the supply of houses for sale is so high. In Fresno and Clovis, 4,167 single-family homes are for sale. With monthly sales averaging 350, that equates to an almost one-year supply of property on the market."

"Fresno appraiser Carole Laval says (the price slump) averages about 1% per month."

"Joan Jolly, a Fresno agent said she does have one client who is being transferred two years after buying a house and putting $80,000 worth of upgrades into it. 'It's just not there,' she said of the profit.'"

"Jolly said, 'Real estate was never meant to be a commodity you buy today and sell tomorrow.'"

The Press Democrat. "Greg Levy's hopes for selling condominiums he converted from apartments have been dashed by Sonoma County's housing downturn, forcing him to rent out the units with a turnaround still not in sight."

"'We just don't have the demand. We're not going to deal with this market anymore,' he said."

"Condo sales are slumping alongside houses in the county as the market's decline nears the two-year mark. The typical condo sold for $375,000 in June, a 4 percent drop from the peak of $390,000 in October 2005."

"A tightening rental market is an indicator that buyers are staying on the sidelines. Sonoma County's apartment vacancy rate is dipping and rents are rising."

"'Properties are staying full. A lot of people are still choosing to rent because the affordability gap is so wide. Also, a lot of people the last six months or so have held off from making purchases because prices have been falling,' said Jason Smith, an analyst with NorCal Commercial."

The LA Times. "When Riverside County landlord Eloise Figueroa learned that her tenant was about to move out of her four-bedroom home in Perris and into a lower-priced rental house, she sprang into action."

"'I said, 'Where are you going? What are you paying? OK. That's your new rent,' said Figueroa, who agreed to cut her renter's $3,000 monthly lease by $150 to keep him."

"Figueroa, who owns four homes in south Riverside County, has a plan to deal with the slowdown. She is giving new tenants the option to buy by applying their monthly lease payments to a mortgage that she's willing to carry."

"'When you have a housing recession, this is the sort of thing that happens,' she said."

"In June, the typical monthly mortgage payment of Southern California home buyers was $2,430, up from $2,422 a year ago, according to DataQuick. That's in contrast to the Southland's average monthly rent of $1,400 for the apartments surveyed, RealFacts' second-quarter report said."

The Union Tribune. "The average monthly rent in San Diego County jumped 5.4 percent to $1,345 during the last quarter compared to a year earlier, reflecting a rental market that is seeing increased demand as home sales slow, foreclosures rise, and condo conversions retreat to rentals."

"RealFacts' survey may have a tendency to overstate rent increases in the San Diego market where move-in incentives such as one month's free rent have been common, said Robert Pinnegar, executive director of the San Diego County Apartment Association."

"'I'm hearing that landlords are tightening their budgets because they don't see a lot of rent growth going on,' Pinnegar said."

The Desert Sun. "Coachella Valley apartment renters paid $10 to $30 more a month on average in April, May and June compared with the same three-month period a year ago, marking a more modest increase than in previous quarters."

"Coachella Valley apartment renters paid $10 to $30 more a month on average in April, May and June compared with the same three-month period a year ago, marking a more modest increase than in previous quarters. Second-quarter rental rates dropped in Indio, Palm Desert and Palm Springs."

"There's been a marked slowdown in recent months, said Carlos Campos, assistant manager at Andorra Apartments in Indio. Some renters have found good deals on homes as sellers trim their asking prices, while other tenants have lost their jobs, Campos said."

"Many of the higher-paying residential construction jobs have disappeared, he said."

"Dragged down by big losses related to the real estate slump, California's employment engine ground to a near standstill in June with a net gain of 400 positions, state figures released today show."

"Reflecting layoffs by troubled subprime lenders and the big chill in home building, the financial activities sector lost 5,700 jobs, while construction shrank by 5,300. By comparison, the other four declining sectors lost a total of 5,900 jobs."

"'Slowing state job growth has been primarily caused by the slowdown in residential building and resale activity,' said Stephen Levy, senior economist for the Center for the Continuing Study of the California Economy. 'A continuation of the slowing will cause problems for this year's and next year's state budget.'"

The San Gabriel Valley News. "In the face of an increasingly tough mortgage market, Pasadena-based IndyMac Bancorp. announced Thursday it is laying off about 400 employees, roughly 4 percent of its total work force. Most of the layoffs will become effective immediately, a company official said."

"In an e-mail to the affected employees...CEO Michael W. Perry said the company 'must take action in order to protect our business and remain competitive.'"

"Industry loan volumes and profit margins continue to be under pressure, he said. 'While recently our pipeline has been recovering, we concluded that we needed to both right-size our work force to our current volumes and also be very hard-nosed in redesigning our processes,' Perry said."

The Bakersfield Californian. "Countrywide Financial Corp., one of the country's largest residential mortgage lenders, shut its Bakersfield subprime branch, according to a company news release."

"'The subprime mortgage business is slowing,' Countrywide spokesman Rick Simon said in the release."

"Locally, the entire home mortgage business is slow, said Brian Dawson, president of American Financial Services, a residential lender. 'I don't know, I'm just not surprised,' Dawson said. 'I think you'll see that closure. I think you'll see other closures.'"

"Dawson, whose company has been making prime loans since 1985, called the nationwide upheaval in the subprime sector 'a scary business.'"

The Contra Costa Times. "'I think what most builders would tell you, both on and off the record, is that a substantial portion of (builders') business came from less than perfect credit,' said Bob Burton, VP of sales and marketing for the Hofmann Co., based in Concord. 'I'd say upwards of 30 percent was subprime.'"

"Joseph Perkins, CEO for the Home Builders Association of Northern California in San Ramon, said he believed some of the blame resides with the Federal Reserve Board, which decided to raise interest rates, to the detriment of the housing industry."

"'You had a two-year campaign to ratchet up interest rates,' he said. 'That campaign ended up killing the housing boom. And what's so interesting is that there were so many people out there who thought it would be a good thing. Now we see it hasn't been.'"

From KCBS 5. "Contra Costa County residents who live near homes going through foreclosure are at higher risk for West Nile Virus exposure, according to the county’s Mosquito and Vector Control District."

"Deborah Bass, a district spokeswoman, said people under financial distress because of foreclosures are more likely to abandon or neglect properties."

"'In Contra Costa County for example, there are 10,000 homes that are in some sort of foreclosure process,' said Bass. "We can put a lien on the property.'"