A report from the Idaho Statesman. "The number of Treasure Valley homes entering the foreclosure process in May was down 17 percent from the previous month, according to statistics released Wednesday. A total of 345 notices of default - the first step in the foreclosure process - were filed in Ada and Canyon counties in May, compared with a yearlong peak of 415 in April."

"The 345 filings were still 141 percent ahead of the 143 default notices filed in May 2007. Moreover, the Valleywide total of 1,843 default notices filed between January and May of this year represents a 139 percent increase over the comparable period a year ago."

"Charlie Nate, president of IdahoDataProviders, which compiled the statistics, said the lull in May was because banks are being swamped with repossessed properties. As a result, he said, lenders have become reluctant to pull the trigger on a foreclosure, choosing instead to try to negotiate a 'short sale.'"

"'Lenders are more likely to go along with a short sale now,' Nate said. 'They already have a ton of properties on their books. So, they might wait (on foreclosure) to see if they can get a short sale approved.'"

"'I think two out of every three homes in foreclosure are upside down,' he said."

"Shaun Tracy, an associate Realtor in Boise, said the decline in foreclosures last month isn't necessarily a sign that the local real estate market is turning around. 'I'm not sure that the public is really aware just how many foreclosures there really are out there,' Tracy said."

"But it may convince consumers sitting on the fence that home prices will not fall any farther and that this is the time to buy a home, Tracy said."

"The slowdown in home sales during the past year resulted in May's bankruptcy protection filing for Hunter's Point, a subdivision of more than 500 housing units encompassing a golf course in Canyon County."

"However, a developer and real estate professionals say Eagle's Legacy, with about 1,300 homes, surrounding golf, tennis, swimming and soccer facilities, has great potential because of its upscale 1,800- to 4,000-square-foot homes that range in price from $249,000 to $449,000, and its prime Treasure Valley location.'

"'When you look at Eagle, that is a very attractive price,' said Shaun Tracy, an associate Realtor in Boise, who is not connected to the Legacy project."

"During the first quarter of the year in Eagle, only three new homes sold for an average price of $484,000, according to the Intermountain MLS. And only 13 of the 78 homes listed for sale around $250,000 are 2,000 square feet or more, and only six of the 13 are new construction, Tracy said."

"'At the $250,000 price point, they (Legacy) have no competition,' he said."

"But at a time when high-end home sellers and builders are struggling, how did Legacy finance and maintain such a development? The development was in the planning stages five years ago, before land prices soared, Legacy developer Todd Santiago said."

"Legacy also partnered with Holmes Homes, a Utah-based company that has built more than 16,000 homes in Idaho, Utah and Arizona. 'They came in with a far better price point than most builders, and that allows a home to be priced more aggressively,' Santiago said."

The Bellingham Herald from Washington. "Until recently, Bellingham and Whatcom County bucked national trends when it came to residential home prices. However, in the first quarter of 2008, the median price of a home dropped 3.4 percent compared to the same period last year. Also, home sales are down 14.1 percent, according to Lylene Johnson of The Muljat Group South office in Fairhaven."

"'Homes were on the market sometimes as little as 15 days in previous years are now taking 100-200 days to sell,' says Tom Follis, managing partner in Wm. T. Follis Realtors."

"So what is the future going to bring to our local commercial real estate market? One trend that has become quite prevalent here particularly in Fairhaven is the mixed-use buildings, combining commercial and residential units."

"'It is, in many respects, the wave of the future,' says Follis. 'With more people living in the core areas like downtown Bellingham and Fairhaven, it has tremendous appeal to business owners. They have instant customers living right above their business.'"

"People in the industry say that the market has shifted some. There are fewer spec homes being built. With the market for work on new homes slowed from the high of the last five years, many business people are hunkering down expecting a decent, but not busy, summer season this year, followed by a much busier 2009."

"Del Jacobson, president of the Building Industry Association of Whatcom County, said he hears stories about contractors who were building spec homes and are now stretched thin. And he said most business owners are worried that the perception that things are bad, reinforced by national news stories, will lead to more of a slowdown."

"'I think we are all a little nervous,' Jacobsen said. 'But from what I can see, compared to the national side of things, we are doing a lot better here in Whatcom County.'"

"Pat Rose, owner of Rose Construction, said her sign of how things are going comes from her phone. She is getting fewer calls this spring than the last few years, and the phones were basically silent during the winter - silent, that is, with the exception of sub-contractors calling her to see if she had any work."

"Those kinds of calls almost never came during the super-busy times the last three or four years. 'I talked with other remodelers I know and there is a definite, significant lull in the winter,' she said. 'But it's now picking up some.'"

"The perception that things are worse than they really are can be blamed on two phenomena, those in the industry say. First, any slowdown would seem bad compared to the frantic times in the industry in the past five years."

"'It was really amazing, and it went on for so long,' said Rose, who has been in business for 22 years. 'It got so crazy. Any lull would seem like a change for the worse after that.'"

"Even locally, the largest failures tend to get the biggest press. So residents are reading about developers who are giving up on would-be housing projects or residents facing mortgage problems or that Washington Mutual closed its Bellingham Home Loan Center in response to the market struggles in California."

"'We are not running at the pace we were two or three years ago,' said Jim Wynstra, president of Homestead Northwest. 'But those were remarkable periods.'"

"In support of the industry, the Building Industry Association of Whatcom County has been running an advertising campaign trying to persuade potential customers that now is a great time to buy or remodel."

"Still, said Bill Quehrn, executive officer of the BIAWC, things have slowed a little. He said the builders he talks to and works with know that and most are prepared to weather the storm."

"'We have been in a boom cycle, no one would argue that,' he said. 'If you are fairly new in the business you might just think that's where our market is. But most veterans would say we have just come back now to where our market usually is.'"

The Heraldnet from Washington. "A sign of sinking home prices in Snohomish County is on its way in the mail. New values issued this week by the county assessor show an unprecedented 2 percent drop from last year."

"'I don't think I can remember a year where we've decreased residential values countywide since I started working here in 1987,' county assessor Cindy Portmann said. Her chief residential appraiser, Steve Lightle, said it hasn't happened in his 35 years with the county."

"The drop comes after issuing years of double-digit increases in property values. Homeowners have seen double-digit increases in property values each year since 2004. The new assessments are based on property sales in 2007, which steadily declined starting last June. They've continued to slide."

"Citing economic reports, Portmann said the overabundance of cheap credit caused a housing bubble that inflated the price of land and housing and caused many developers to build more homes than there were buyers."

"The 2 percent decrease seems to accurately reflect last year's slide in prices, said Nathan Gorton, executive officer for Snohomish County-Camano Association of Realtors. Overall, housing prices are about 5.5 percent lower than they were 18 months ago, he said."

"Based on sales figures, Snohomish County median house and condo prices dropped to $330,000 in April from $350,000 in November."

"A decrease in property value shouldn't worry homeowners, Gorton said. 'If you look at it like a stock, then, yeah, you might panic a little bit,' he said."

"Homeowners who hang onto a property for five to seven years will probably make money, and some statistics show the price of a home doubles every 10 years, he said."

"'We've got to get away from looking at houses like the stock market,' Gorton said. 'There's intrinsic value. You live there. You raise a family there. You make memories there.'"

Salem Monthly from Oregon. "In March, Salem Monthly reported that Salem was weathering the real estate woes that were facing other parts of the country. But recently the Willamette Valley MLS released statistics showing a decline in the average sale price in the Willamette Valley compared to this time last year."

"Melina Tomson of Tomson Burnham, a real estate agency in Salem, says there are two main reasons for the decline. One is the oversupply of newly constructed homes, which raises housing prices because they are generally more expensive. Second, she cites the lack of sales of luxury homes in the area."

"'It really comes down to supply and demand,' Tomson said. 'We have little demand and a lot of supply. As such, buyers are demanding lower prices and when sellers are willing to come down, buyers are buying.'"

"Prospective sellers should be aware that multiple sources have called it a 'buyer's market.' But Tomson does not believe there is a best time to buy or sell."

"'I think if someone is planning to live in a home for a short period of time, renting might be a better option due to the increasing inventories and difficulties in the lending market. I think sellers need to be realistic about the change in the market,' she said."

From KTLV 10.com in Oregon. "Home Appraiser Roy Wright is considered by many in the Jackson County real estate business to be the expert when it comes to tracking market trends. Wright says the Ashland housing market tends to be an indicator of where the rest of the county is heading, which could be good news for sellers."

"'I believe we are seeing the beginning of the end,' says Wright, after three years of a struggling housing market."

"'We're not out of the woods. But we definitely see a light at the end of the tunnel, and it's not a train coming at us, you know, hopefully. The light is definitely there,' he says."

"Wright says more than 300 fewer homes were sold this year than during the first 5-months of last year. He also says foreclosures are expected to continue which is devastating news for those losing their homes, but is promising for first-time home buyers looking for better priced houses."

The Tigard Times from Oregon. "Tualatin resident Jon Hanson could be a motivational speaker. He could be a politician or financial investor. But instead, he is a real estate agent, which sort of pulls all these facets of his personality together."

"Only a handful of months into his career as a real estate agent with Keller Williams Realty in Oregon and Northwest Properties Brokers Network in Washington, Hanson brings a refreshing perspective to the housing market."

"For 24-year-old Hanson, a love of houses and people came naturally. 'I've always had an interest in houses because there are unlimited possibilities,' said Hanson. 'Who doesn't love real estate? People always love to tell their real estate stories, whether it's the house they should have bought or if they are just asking about the market.'"

"Despite nationwide murmurs about the real estate market's downturn, Hanson insisted the Portland market is 'relatively wonderful.'"

"With lower interest rates and competitive home prices, Hanson said now is the time to buy. 'After we come out of this downturn,' Hanson said, 'people will realize they should have bought at a discount a year ago.'"

"Jeff Barram purchased his first home in Vancouver, Wash., with Hanson's help. The process, Barram said, 'was really nice because we didn't really have to do very much at all. He ran everything. Being first-time homebuyers, we didn't know anything. There are so many forms.'"

"'I have goose bumps thinking about the opportunities out here for people,' Hanson said. 'Right now I'm working with a number of buyers. They see that real estate might not be this affordable again.'"

"'Every day when I leave my house,' he said, 'I'm not in the real estate business; I'm in the trust business.'"

"And in his business, Hanson said, he must eliminate the fear of failure. 'Failure does not exist' he said."