The Billings Gazette reports from Montana. "The subprime investment jitters have hit Yellowstone County government. On Tuesday, Yellowstone County Commissioners asked the Montana Board of Investments to return nearly $72 million of its investment funds because of the potential exposure to risky loans and other concerns. Yellowstone County Finance Director Scott Turner said he just got nervous and so did the commissioners."

"'All three agreed to redirect the money to the bank for now until we get a better comfort level with what's going on,' Turner said. In addition to the subprime risks, Turner said he could no longer get a quote on the daily yield or the investment returns on county funds."

The Missoulian from Montana. "Production and employment in Montana's wood products industry continued to decline in the third quarter because of the ongoing U.S. housing slump and related low timber prices."

"Todd Morgan, director of forest industry research at the University of Montana's Bureau of Business and Economic Research, said Tuesday it is the second consecutive year with significant declines in Montana's industry because of national housing issues."

"Morgan said weak markets, mill curtailments and closures can be expected well into next year. 'I haven't seen anything yet indicating a recovery in 2008,' he said."

The Idaho Statesman. "Home sellers and real estate agents hoping for a turnaround in the Treasure Valley's housing slump will have to keep waiting. The latest housing data show prices slipping, with little reduction in the backlog of unsold homes."

"Throughout the market a common sight has become the real estate sign claiming 'price reduced.' 'Prices are coming down. I'll guarantee you that,' said George Tallabas, a Realtor in Nampa who has been concentrating on selling farms and ranches since the residential market tanked in late 2006."

"The problem is the number of homes for sale in the Treasure Valley. October's statistics showed 7,411 single-family homes in the Treasure Valley awaiting buyers, compared with 6,595 in October 2006. Sales aren't making much of a dent in the supply."

"Don Hubble, owner of Meridian-based Hubble Homes, said there are still buyers at the right price. For example, his recent listing of a home in Caldwell priced at $109,990 drew 2,000 hits on the Intermountain MLS. 'They called us to see if it was mistake because they had never seen a listing get so many hits,' Hubble said."

"He said builders can't offer the same deal in Meridian, even though land prices have fallen from about $160,000 an acre a year ago to below $80,000 as 2007 nears an end."

"'We seriously over-built,' said Boise State University economics professor Don Holley. 'I think it's going to take at least a year to work through all that inventory. Maybe two years.'"

The Oregonian. "Almost every Clackamas County homebuilder sings the same refrain these days: There are lots of buyers out there, but they're scared. Dire news reports about subprime mortgages, foreclosures and glutted markets elsewhere, especially in Sun Belt, have tarred Portland as well, the builders say."

"'What's killing us is the perception of the market,' said Tony Marnella, owner of Marnella Homes, which has a 115-lot subdivision in Happy Valley."

"'You've got all those people sitting on the fence. They think if you buy it today it's going to be worth less tomorrow,' Marnella said. 'We're just waiting to see what happens.'"

"'For the next 60 to 120 days there are going to be some good values' as developers clear their backlog of homes, said Ken Hoffman, a north Clackamas County real estate broker. 'Bankers are saying to builders, 'You've got to move that inventory,' Hoffman said. 'Builders are going to have to take it on the chin.'"

"At Oregon City and Canby subdivisions, Sequoia Development is trying to lure buyers by promising to make mortgage payments for six months. Sequoia's 276-unit condominium and townhouse project just north of Clackamas Town Center has some units available for rent or with a lease-to-own option. Developers and Realtors say that may be a sign a project is struggling."

"In Canby, Jason Bristol is dabbling in land development as a second career. He is seeking city approval to build 19 townhouses on an acre he owns. He's currently renting out four houses on the site."

"Bristol expects a real estate revival. But, he said, 'every time I check the MLS, I see a lot of the same houses still for sale.'"

"Two years ago, Lori Loen, a real estate broker, knew exactly how she would spend her days, scouring the southwest suburbs, searching for more land to feed an insatiable housing market."

"A lot has changed since then for Loen and virtually everyone else involved in the region's housing industry."

"The scramble to lock up land for new residences is largely on hold as unsold housing inventories have climbed and many potential buyers are clinging to the fence."

"A smattering of statistics underscores that the suburban housing market, and corollary efforts to buy raw land for new houses, have slowed. The average price of homes sold in Lake Oswego in 2006, for instance, was $596,600, Lake Oswego Realtor Adelle Jenike said, citing monthly data provided by RMLS. So far this year, that number stands at $547,700."

"'The prices of homes have dropped, no doubt about it,' Jenike said. 'But we're not seeing anything like the horror stories on television from around the country.'"

"Last month, according to the same information, the Portland area had an 8.4-month inventory of homes for sale. It's the highest rate of inventory since January 2000, when the figure topped 10 months."

"In October 2006, by contrast, the inventory was 4.6 months. In 2005, when the area housing market was red-hot, that figure had dropped to 2.2 months, representing one of the lowest inventories in years."

"'Two years ago, we all thought things were insane and probably unsustainable,' said Ken Gertz, owner of Gertz Construction in Tualatin. 'But by any long-term measures, the Portland market itself is still very strong.'"

"Other parts of the state, he added, aren't keeping up. Jackson County, for instance, has slowed dramatically in recent months. 'And Bend is a tomb,' Gertz said. 'But we all knew that. There was no way it could sustain the level of growth it had seen the past two or three years.'"

"At the fledgling Villebois master-planned community in Wilsonville, developer Rudy Kadlub is still planning to start construction Jan. 2 on the 73 rowhouses, townhouses and condominiums."

"'We're continuing to take a very aggressive approach,' said Kadlub, founder of Costa Pacific Communities. 'The more 'there' we create, the more overall traffic there'll be.'"

"Former Portlander Jacinda Kirk, a 26-year-old renter in suburban Seattle, would like to buy a place outside of Seattle, but she can't afford it. 'We left the Portland area thinking it was expensive,' Kirk said. 'We moved to Seattle and said, 'Oh. my gosh. We love Portland prices.'"

"Kirk would like to see prices come down. She keeps clicking through the Internet in search of a deal in Seattle or Portland. Kirk, who's married with an infant son, recently found a Beaverton home with a yard on a corner cul-de-sac lot. It's 1,900 square feet, four bedrooms and has 21/2 bathrooms. Price: $350,000."

"In Issaquah, a Seattle suburb, she found a 1,700-square-foot, four bedroom and 21/2 bathroom townhouse with no grass for her son to play. Price: $440,000." "'If we're going to spend $400,000 for a house,' she says, 'we at least want a yard.'"

The News Tribune from Washington. "Though Tacoma’s largest developer, Prium Cos., has yet to make a formal announcement, the company has quietly pulled its eight-story Hanna Heights condominium project off the market."

"The company, which had not sold one of the 35 units in the building at Sixth Avenue and Fawcett Street despite a recent upgrade to granite countertops and other upscale amenities, is converting the building to apartments."

"Real Estate agent Julie Sargent, who was attempting to sell the building’s condominiums, said Prium notified her about three weeks ago to halt condominium sales efforts. Hanna Heights is not the only Prium project that has seen the effects of the slowing real estate market and the credit crunch."

"Near Sixth and St. Helens avenues, Prium’s plans for a 20-story condo tower, Jay Heights, have been put on ice."

The Seattle Times from Washington. "The housing crunch hit Renton-based First Financial Northwest Wednesday, as the lender said it would set aside $4.5 million because one of its large borrowers, a residential developer, may have trouble repaying $37.3 million in loans."

"The company...described the unidentified customer as 'an entry-level builder' that took out 90 separate loans for projects in King, Pierce and Thurston counties. The single-family homes in those developments sell for an average $300,000 to $400,000."

"The developer, First Financial said in a statement, 'has experienced a slowdown in home sales as a result of tightening credit markets, which has [sic] a greater impact on entry-level borrowers.'"

The Seattle PI from Washington. "Seattle's 12-month reign atop the nation in annual home-value increases came to an end in September, according to a report released Tuesday. Seattle's annual appreciation has declined for 19 straight months."

"September's year increase was the lowest since June 2003, and home values actually dropped from the prior month for two straight months -- the first consecutive decline since November 1995 through January 1996."

"'That's really what I've been telling folks to expect,' said Glenn Crellin, director of the Washington Center for Real Estate Research at Washington State University. 'Consumers have more choices in the marketplace, and they're negotiating better deals from sellers.'"

"One of those sitting on the sidelines is Dave Anderson, who moved to Seattle from New York in 2005 for a job. He has been in a position to buy a home for about a year."

"'It seems like there's sort of a euphoria that continues or a denial that the national situation will affect the local market here,' he said. 'I think a 5 or 10 percent correction, coupled with sort of a consensus that Seattle is not immune to price declines would make me feel a lot more assured that the bubble is over.'"

The Columbian from Washington. "It's been four months since Lori and Fred Clark put their Vancouver house up for sale and joined thousands of sellers in pursuit of a shallow pool of buyers."

"While they haven't had any offers for their one-story ranch, the Clarks say they're willing to wait out the market. However, they've taken down the 'For Sale.' They've also cut their price."

"Despite slowing Clark County home sales, the Clarks don't plan to take their 2,000-square-foot house off the market. The retired couple say they're prepared to hold out through the slump."

"'It's just a waiting game,' Lori Clark said." "Lowering the home's asking price to $325,000, down from $339,900, hasn't helped, the Clarks say. Back in August, their real estate agent was showing the home about three or four times a week."

"'There's been no interest at all since the end of October,' Lori Clark said."

"'They think it's better to wait for better deals,' said Sana Mathews, the Clarks' Realtor. The Clarks are among plenty of sellers. Their home is counted in an 11.4-month supply of new and existing homes for sale here, according to RMLS. Last month's inventory was up from a 7.2-month supply during the same month last year."

"The Clarks' had hoped to sell their Lincoln-area home in time to escape another cool Vancouver winter. They're planning a move to the warm climate of Albuquerque, N.M."

"'But we're going to wait and do things step by step,' said Lori Clark. 'We'll sell this house and then go there and pick out a place.'"