The Missoulian reports from Montana. "Missoula's real estate climate, while sheltered from the extremes in other markets, cooled in 2007. 'We didn't see the huge price increases and so we're not seeing the dramatic drops,' said Mary Marry, president of the Missoula Organization of Realtors. 'We're not seeing people who went so far out on a limb as they were competing with investors.'"

"But about 200 fewer homes have changed hands. There were 1,303 homes sold so far in 2007, as compared with 1,505 in 2006. Prices have dropped for some homes and some listings are taking longer to sell. 'I think we've taken a little bit of a speed bump,' said broker Sherril McCabe."

"Kim Chambers, the incoming president of the Missoula Building Industry Association, said...houses constructed in the $150,000 to $215,000 price range remain strong. But she has noticed a slowdown in speculatively built homes in the $600,000 range."

The Bozeman Daily Chronicle from Montana. "After the boom year that was 2007, and in the face of a host of potentially worrisome economic indicators, local businesses are trying to remain hopeful. 2007's roller-coaster stock market, credit and mortgage woes, and a slowing housing market have caused ripples and echoes here in the Gallatin Valley."

"'Shawn Cote, government affairs director of the Southwest Montana Building Industry Association, said the ongoing nationwide housing slowdown combined with a glut of new homes on the market locally will have an impact."

"'Given what's going on nationally, most builders are anticipating a slower building season,' Cote said. 'You've got the liquidity crunch, and that's how homes get built - through credit. A lot of builders are repositioning themselves, scaling down the number of lots and homes they're building just as a protective measure in case there is a continued softening of the market.'"

"'We've got a lot of people on the fence trying to time the market, which is never a good idea,' Cote said. 'This is a good time to be buying.'"

The Mail Tribune from Oregon. "For sellers and agents used to riding the crest of the 2002-2005 real estate joy ride, 2007 was a painful return trip to reality."

"Gross sale volume, including rural sales, declined to 2,289 in 2007, a 16 percent drop from 2,727 transactions in 2006. You have to look back into the 1990s to find a lower number of deals."

"Figures compiled by SOML show the median sales price of existing Jackson County homes declined to $229,000 in December from $258,000 a year earlier. For all of 2007, the median price was $260,000, down 3.7 percent from the $269,500 median in 2006. New construction saw a 19.2 percent decline to a median of $289,900 for all of 2007. The 2006 new construction median was $358,900."

"'The sellers' market of the past has been replaced by the buyers' market of today,' said Colin Mullane of the SOML board. 'Sellers who are moving within the valley have the advantage of offsetting any loss, perhaps buying into a lower-priced home, or a better quality home at a lower price than previously experienced.'"

The Olympian from Washington. "Sales of single-family homes and condominiums in Thurston County dropped 32 percent in December compared with a year ago, but median prices held steady in the same period, the Northwest MLS reported."

"Buyers in the county found more choices last month as the number of single-family and condo homes listed for sale was 1,739, up more than 12 percent from 1,546 at the same time a year ago."

"Many brokers say 2007 was a year the real estate market corrected itself from the record 2006, when more liberal lending practices boosted sales but also resulted in rising mortgage foreclosures."

"'I believe the bottom has arrived in the Puget Sound market and from here on prices will stay level or advance slightly in 2008,' said Dick Beeson, broker in Tacoma."

The Kitsap Sun from Washington. "Above-normal rainfall and floods contributed to the expected seasonal housing slowdown in western Puget Sound in December, according to officials from the Northwest MLS."

"Mike Eliason, executive of the Kitsap Association of Realtors, said that it was only a matter of time before the housing market would come back to earth."

"'When you have double-digit increases in home prices year after year after year, at some point it will drop off, particularly when local wages are not increasing by the same percentage,' he said. 'I think you're seeing that now.'"

"It shouldn't surprise anybody that as the number of pending sales and closed sales decreases, sales prices will drop, Eliason said. 'I think we're getting back to a more stable real estate marketplace,' Eliason said. 'The correction in the market has been good, particularly for first-time homebuyers. There need to be places for our children and grandchildren to live.'"

The News Tribune from Washington. "Pierce County housing prices held steady last month at nearly $270,000 after three consecutive months of year-over-year price dips. The number of closed sales, however, continued to fall, according to the latest figures released Monday from the Northwest MLS."

"Sales in the typically slow Christmas season slid by 39.3 percent compared to December 2006."

"Listings were up, though not nearly as much as in King and Snohomish counties. Pierce County had 7,109 houses and condominiums for sale in December, according to the listing service – 34.5 percent more homes than the same month a year before."

"Patti Dains DeYoung, (an) agent who’s been selling real estate more than 20 years, said today’s market feels much like the mid-1990s: aggressive pricing, frustrated sellers and homes staying on the market."

"The biggest price drops were seen in North Tacoma (down 11.8 percent) and the Lake Tapps-Bonney Lake area (down 10.3 percent) with the largest boosts in the Graham area (up 33.8 percent) and DuPont (up 14.6 percent)."

"The number of sales was off by more than 50 percent in Fife and Tacoma’s North End."

The Seattle PI from Washington. "Nobody can deny now that Seattle-area home prices have declined. The question is: Have they hit bottom?"

"A typical house in Seattle and King County sold for less in December than a year earlier, a milestone, according to data the NMLS released Monday."

"The city price was down 9 percent from a high of $501,000 in August, while the county price was off 9.6 percent from a peak of $481,000 in July 2007. Home sales dipped 14 percent in Seattle and 28 percent in King County last month from December 2006. Pending sales, which can be a better indicator of the most recent activity, dropped by 23 percent and 34 percent, respectively."

"That eases the recent frenzy of bidding wars and waived inspection contingencies for potential buyers. 'The competition is a lot less,' Jessica Gartner said outside a Greenwood open house on Sunday. 'You can take your time looking.'"

"Meanwhile, the number of homes on the market in December had gone up 70 percent in the city and 61 percent countywide from a year earlier."

"'We're willing to wait to find something we like,' said Dan Mellott, who moved to Seattle from Philadelphia in November."

"Patrick Anderson, who owns a Seattle house and is interested in downsizing, thinks prices are still too high. 'I think it needs to soften up a little more,' he said."

"The changes leave others unsure what to think. 'There's all this talk about prices going down. What if it tanks after we buy, or what if we wait and it goes the opposite direction?' Mellott said."

The Seattle Times. "'One of the biggest things slowing down the local market is the memory of multiple offers and sellers being unrealistic in accepting the fact that the gold rush mentality is gone,' said Paul Simpson, an associate broker. 'What we now have is what I like to call a normal market.'"

"The owner of the historic Smith Tower in Pioneer Square is scaling back its proposal to turn all of the building into residential condominiums, papers filed with Seattle city agencies indicate."

"It now plans to convert just 12 top floors in the skinny part of the tower into condos, with a single unit on each floor."

"Walton Street Capital, the building's owner since 2006, created a big buzz last February when it sought — and ultimately got — permission to convert all but the ground level of the 38-story office tower into 150 condos."

"The floors slated to remain as offices contain about 11,000 square feet of floor space each. The floors scheduled to become residences are smaller, about 2,000 square feet each."

"The downtown-office market is booming, noted Matthew Gardner, a Seattle real-estate economist, while the condo market may be slowing. 'This would certainly limit one's exposure,' he said."

The Bellingham Herald from Washington. "The 2007 Whatcom County housing market numbers looked very similar to 2006, although the fourth quarter hit a sour note, according to a report."

"The Whatcom County median home price was $290,000, an increase of 2 percent over 2006, according to Lylene Johnson of The Muljat Group South office in Fairhaven. The modest increase ends a four-year run of doubledigit increases."

"Particularly striking was a slowdown in home sales in the fourth quarter: Whatcom County was down 14.8 percent compared to the fourth quarter of 2006; in Bellingham home sales were down 16.8 percent for that same period."

"There are now pickier buyers out there, said Mark Brown, president of the Whatcom County Association of Realtors. 'The buyer mindset is they are in no hurry and may be waiting until the spring to see what will happen,' Brown said."

"In this climate, it’s crucial to price the home correctly, Brown said. 'I won’t take a listing now where the seller insists on pricing it 5 percent over market value,' Brown said. 'It’s a waste of time if the home is overpriced, because it will sit while buyers wait to see how far the price will be reduced.'"