The San Mateo County Times reports from California. "Sales of single-family homes in San Mateo County plummeted in October, falling 32 percent as the housing slump deepened on the Peninsula, according to a new report. Median prices slipped by 10 percent or more compared to October 2006 in many working-class neighborhoods of the North County cities and East Palo Alto."

"For example, the median price fell 14 percent in Daly City to $639,000. It dropped more than 20 percent to $475,000 in East Palo Alto and dipped 10 percent to $687,500 in San Bruno."

"'Homes have to be priced right, or they're not going to sell,' said John Gieseker, real estate broker in San Bruno. 'We don't see sales picking up anytime soon.'"

The Sacramento Bee. "On a perfect Saturday in June the lemonade flowed, cookies abounded and cheerful crowds flowed through Pardee Homes' eight model homes in Natomas. It was a memorable opening day in Natomas for a Los Angeles builder launching the first of its 660 houses near downtown."

"Now, just five months later, Pardee has closed the project. Building crews have been laid off and deals made with only four buyers canceled. Three other regional builders have done the same in recent weeks."

"For companies like Pardee that arrived at the height of the boom, bought land at inflated 2004 prices and started sales in a slumping market, it's especially tough. 'We have the eight models and poured eight foundations,' said David Ragland, chief of Pardee's Sacramento division. 'Sales were slow, and we never started any houses.'"

"'Pricing has continued to erode through specials and incentives,' said Ragland. 'It probably makes more sense to wait while KB Home, K. Hovnanian and Lennar slug it out" in Natomas.'"

"Milwaukee-based Homes by Towne also has mothballed its 145-home project in Natomas called Sky Park at Natomas Field and a 50-home project in Elk Grove called Spring Gardens. The builder has stopped construction at its 227-home Yuba County project called River Landing at Plumas Lakes."

"Rocklin-based Nouveau Homes has taken similar action with a 51-home project in Lincoln called Crystalwood. 'They can't compete with the likes of the public builders out there who are slashing prices and taking whatever losses they need to hit their corporate numbers,' said Ron Mancuso, with the Sacramento-based Advantage Group, which markets Crystalwood for Nouveau."

"For KB Home, one of the nation's largest home builders, the plan is simple. 'The strongest and most capable operators are going to be the ones left at the end of the day,' said the Sacramento territory president, Barry Grant. 'As public home builders we've shown a willingness to sharpen our pencils. It's unfortunate that it's to the demise of smaller builders.'"

"'All these builders, they aren't making any money on any of these homes,' said Kathryn Boyce, analyst for Hanley Wood Market Intelligence. 'They're losing money on all the homes they're selling right now.'"

"Ironically, Boyce said, it's the aggressive price cuts and deals that builders are using to woo buyers that are making more buyers leery. She said many fear their houses will be worth less a week after they unpack."

The Modesto Bee. "It's been a tough year for builders, and those who attended Thursday's Central California Housing Summit heard little cheery news about the near future."

"New-home sales have plummeted 62 percent in Stanislaus, San Joaquin and Merced counties since their 2004 peak, said Rick Baldonado, regional director of Hanley Wood Market Intelligence. He said sales in the region's 248 subdivisions are so slow that, at the current pace, it would take nearly four years to fill all the empty lots."

"This fall, subdivisions on average have been selling only one home per month, compared with about six per month in 2005. What's worse, Baldonado said, is that more than 650 finished new homes are sitting vacant, waiting for buyers."

"He asked audience members to tell him when they thought the market would turn around, and the majority there predicted 2010."

"To increase sales, the speakers agreed homes need to cost less."

"'Improved lot prices got up so ridiculously high that the only way you could make it work was to build McMansions,' said Alan Nevin, the California Building Industry Association's chief economist. Such homes, however, were too expensive for most Northern San Joaquin Valley residents."

"Nevin predicted that empty lots in many large-home subdivisions will be sold at significantly reduced prices to other builders, who then may be able to build houses priced below $250,000. 'There's a whole new wave of people sitting waiting to buy...homes that are smaller and cost less,' Nevin said."

The Daily Press. "Assessor Bill Postmus said San Bernardino County is seeing between 30 to 40 foreclosures a day. About 77,000 homes in California have started the foreclosure process and half of those are in the Inland Empire, the assessor said."

"Postmus said in conversations in his office his professional staff expects the current housing slump to continue and likely to end up being one of the worst in recent years."

"Housing prices have dropped almost 20 percent in the past year."

The Press Enterprise. "Due to slowing enrollment, more middle school-aged students will attend Lisa J. Mails Elementary next year. Murrieta, like many other districts in the Inland area and throughout California, is feeling the financial effects of a slowing housing market."

"'We have a significant amount of people who are upside down in mortgages and have left our area,' said Chuck Jones, facilities planning director for the district."

"For many years, Murrieta showed strong and steady growth. 'Then all of a sudden, bam. Everything stopped,' said Stacy Coleman, assistant superintendent of business services. 'It's very dramatic.'"

The Associated Press. "Residential homebuilder Dunmore Homes Inc. filed for Chapter 11 protection in New York, the latest victim of the faltering U.S. housing market."

"The privately owned builder, based Granite Bay, Calif., near Sacramento, listed assets and debts each of more than $100 million in its bankruptcy petition filed Thursday with the U.S. Bankruptcy Court in Manhattan."

"Dunmore Homes, founded in 1953, built more than 22,000 homes throughout California and Nevada."

"Michael A. Kane of Granite Bay, the sole owner of Dunmore, according to the bankruptcy filing, said in court papers that the Chapter 11 filing was in the 'best interests' of the company, its employees and its creditors."

The Press Democrat. "Christopherson Homes is selling its Santa Rosa headquarters and has laid off a third of its work force in recent months as Sonoma County’s largest home builder struggles to downsize its business in the face of the stagnant housing market."

"The company has shed 35 percent of its workforce since the summer, cut its Roseville operations and recently put its Santa Rosa headquarters on the market for $5.4 million."

"The company that two years ago employed 204 people now has just 47, a 77 percent reduction in staff."

"'Obviously, we didn’t have a crystal ball, and no one would have had any idea that this would turn into the circus that it has,' said said Brenda Christopherson, who founded the company with her husband, Keith."

"'The housing industry right now is just really on its knees,' said Charlie Carson, executive director of the Home Builders Association of Northern California."