A report from Crains New York. "Manhattan's residential real estate market frenzy is fizzling. The number of apartment sales fell during the second quarter from the year-ago period, according to reports released Wednesday by four major brokerages. Two of the firms also reported a sharp increase in inventory. The average apartment price hit $1.7 million during the second quarter, down 3% from the first quarter of 2008, according to Prudential Douglas Elliman."

"It also said the number of sales dropped 22% to 2,282 during between April and June, compared to the year-ago period, while inventory surged 31% to 6,194 units."

"Brokers say the fall off in prices from the first quarter isn't unexpected. They note that JP Morgan's recent purchase of Bear Stearns Cos. in a fire sale, which threw about 7,000 people out of work, took a psychological toll."

"'This year we have a Bear Stearns hangover,' said Pam Liebman, president of Corcoran Group. 'There is a lot more news to make people more hesitant (about buying) than they were before.'"

"Ms. Liebman notes that the price of a one-bedroom apartment on the Upper West Side reached $998,000 during the second quarter. 'That is a big number. You'll get a lot more push back from buyers in those [apartments,]' Ms. Liebman said."

Bloomberg on New York. "Transactions are declining as financial firms have announced plans to cut almost 90,000 jobs after taking more than $400 billion in mortgage-related losses and writedowns. Those companies may lose as many as 175,000 employees by next June, according to executive recruiters such as New York's Gerson Group, casting a pall on a property market driven by Wall Street compensation."

"'People are asking: 'Am I going to have a job?' said Liebman."

"About a third of second-quarter closings were new condominiums, some of which went into contract before turmoil hit the credit markets last August and September, said Gregory Heym, chief economist for Terra Holdings. Once the remaining units in Stern's building and the Plaza close, average prices may drop as much as $200,000, Heym said."

"'Real estate markets go up and down, and when it comes to New York City, it's an island. There's not a lot of land, and it'll survive,' said Dottie Herman, CEO of Prudential Douglas Elliman. 'I think we need to kiss the ground because we live in New York.'"

The New York Times. "One month's free rent. Two months' free rent. No security deposit. How about a year's worth of storage at Manhattan Mini Storage or an appointment at a doggie day spa for Rover on moving day?"

"As the rental market in Manhattan has softened in recent months, these are some of the incentives that owners of high-end buildings are offering to lure tenants."

"'We definitely have seen a shift in the dynamic of the marketplace,' said David J. Wine, a vice chairman at the Related Companies, which owns and manages about 5,000 rental units in New York City. 'The frenzy of a year or two ago has abated, and we're seeing renters be a lot more thoughtful in their rental decisions.'"

"'A lot of landlords were getting ready to increase rents for the busy season, but they're finding that those projected rents aren't attainable,' said Daniel Baum, the chief operating officer at the Real Estate Group New York, a Manhattan brokerage. 'No one anticipated having problems on the rental side, and it's definitely forcing property owners to take a second look at marketing and to rethink their pricing.'"

"Looking ahead, Mr. Wine of Related said that a year from now, the Far West Side of Manhattan between 37th and 42nd Streets may be one of the busiest areas in the city for rentals."

"Related and several other major developers plan to open buildings that are expected to add 1,500 to 2,000 new apartments to the area."

"'In that submarket,' he said, 'there will probably be incentives for renters. Or maybe the timing will be great for the market to absorb it - it will be a very interesting time when all those buildings come online.'"

The Hartford Courant from Connecticut. "The decline in the median sales price of single-family houses in Connecticut gained momentum in May, plunging nearly 11 percent, the deepest decline in five straight months of eroding sales prices."

"It was also the biggest drop since 1992, when the state was digging out of a deep recession. Meanwhile, the number of house sales tumbled more than 24 percent in May, continuing a slide that is now in its third year, according to The Warren Group."

"The state's median sales price, where half the sales are above and half below, was down 10.8 percent, to $272,000, from $305,000 a year ago. Donald L. Klepper-Smith, an economist at DataCore Partners Inc. in New Haven, said Tuesday's report shows the declines will continue. The price decline in May, for example, exceeded the 8 percent price drop for the first five months of this year, he said."

"'That shows an acceleration to the downside,' Klepper-Smith said. 'There's no sign that we're going to see bottom any time soon.'"

"Affluent Litchfield and Fairfield counties took the brunt of the price declines in May. In Litchfield County, the median sales price of a single-family house plunged 17 percent in May to $250,000, from $302,000 a year ago. Sales plummeted nearly 31 percent."

"Fairfield County saw the median sales price fall 13 percent in May, from $627,500 a year ago to $545,000. Sales plummeted 35 percent."

"Todd Martin, a Fairfield economist, said the slowdown in Litchfield and Fairfield is being driven economic by troubles on Wall Street. 'And there's lots and lots of inventory,' Martin said."

From The Day in Connecticut. "The same steep housing slump that has taken down markets in Rhode Island and Massachusetts has finally caught up with New London County and Connecticut. What's more, there's 'no way out' in the near future, said Vincent Valvo, group publisher of the Warren Group."

"In New London County, single-family home sales were off 21 percent in May compared to a year earlier, numbering 195 instead of 247. Median prices were down 7 percent, from $270,000 to $249,900."

"For some time, New London County was showing resilience in the face of a housing downturn across Connecticut, but no longer, Valvo said."

"'The numbers you're seeing in New London County are tremendously off,' he said. 'It shows very clearly that home sales are sliding and median prices are decreasing and that the county isn't immune to the problems affecting the rest of the state.'"

"The dropoff mirrors what happened 16 years ago, in 1992, with one startling exception: The country was emerging from recession then, whereas the nation is now heading toward a recession, Valvo said."

"'The only real way to look at this is to realize we aren't seeing a short-term economic downturn,' he said. 'What we're seeing is a fundamental change in the market. This isn't an aberrant market, it is the market.'"

The New Haven Register from Connecticut. "'Last time prices in Connecticut fell more than 10 percent in a month, it was July 1992,' said Timothy Warren Jr., CEO of The Warren Group."

"'But there was a difference then: the state was already pulling out of its housing slump, and sales during that month increased by more than 7 percent. But there was no sign of such a silver lining this May,' he said."

"'Buyers are pushing (the median) down a bit, without question,' said Sam Ratner, owner-broker at Keller Williams Realty Central Connecticut in Cheshire. With buyers taking their time looking around the market, sellers have been forced to set more realistic asking prices, he said."

"'When they over-list the price, they wind up getting less than if they priced it correctly from the beginning,' he said."

The Connecticut Post. "Today, it's the lack of credit that's driving down prices and sales, Valvo said. Lenders are not only reviewing borrowers' histories more closely but are also requiring down payments, usually of 10 percent, he said."

"That means to buy a $500,000 house, Valvo said, a buyer would have to be able to come up with $50,000 for a down payment. That doesn't include the $10,000 to $20,000 in legal fees, inspections and other costs that pile up as part of the transaction, he added."

"'You've got economic gravity working against you,' said Valvo."

"Donald Klepper-Smith, chief economist of New Haven-based DataCorps Partners, said the real estate market, like the state and national economies, is a mix of good and bad news.'

"'It depends on which side of the equation you're on,' Klepper-Smith said of falling prices. If you've already got your house, this is terrible news because your equity is being eaten up. If you don't have a house, it means you might finally get one you can afford."

"Mark and Bonnie Fodor were content on Jennie Lane. After moving here from Norwalk in 1999, the Fodors sank thousands of dollars into practical improvements. So when Mr. Fodor developed health problems that left him partly disabled, the couple struggled with the decision of whether to sell their home."

"They finally decided to sell, thinking the house would quickly attract interest. But they found themselves stuck in a market so unkind that they are still looking for a buyer a year later. 'We can't believe it's taking this long,' Mr. Fodor said. 'I thought I would be more insulated in the town of Westport. We thought Westport would have a buffer.'"

"The Fodors tried to negotiate with the one buyer who made an offer on their three-bedroom house, but they couldn't come to terms. Since the property went on the market in May 2007 they have gradually lowered their $1.199 million asking price; it has now reached $879,500."

"Even with that reduction, however, many buyers still won't look beyond the dated kitchen, said the listing agent, Debra Kandrak. 'If they don't have their remodeled kitchen or remodeled baths,' she said, 'they're just moving on to the next property.'"

The Worchester Business Journal from Massachusetts. "The number of foreclosure deeds filed in May reached an all-time high in May, rising 107.5 percent over May 2007, according to The Warren Group."

"The Warren Group said 1,405 foreclosure deeds were filed in May. Not only is that up from 677 in May of last year, it's up 5.3 percent from the 1,334 filed in April. And year-to-date, 5,576 foreclosure deeds have been filed, a 139.6 percent increase over the 2,327 filed in the first five months of 2007."

The Cape Cod Times from Massachusetts. "Foreclosures on Cape Cod this year have increased more sharply than in any other county in the state. As of the end of May, 261 foreclosure deeds had been filed in Barnstable County, a jump of nearly 175 percent over the 95 foreclosures completed in the first five months of 2007."

"Particularly hard hit were the towns of Falmouth, which saw a 725 percent increase in foreclosure deeds; Centerville, with an increase of 383 percent; and Hyannis, with a 350 percent increase."

"Across the state, the number of petitions fell from 2,158 in May 2007 to just 390 in the same month this year. This decrease is due to a new state law, which took effect May 1, that requires lenders to give struggling borrowers 90 days before filing a petition to foreclose."

"This drop-off in foreclosure petitions, however, is unlikely to signal the end of the foreclosure crisis, housing experts said."

"'Many of the people who had problems paying their mortgage up to the foreclosure are still going to have trouble paying their mortgage,' said Pam Parker, a mortgage foreclosure counselor in Hyannis."

The Boston Globe from Massachsuetts. "There is no glaring reason that this five-bedroom Colonial in Waltham has been on the market for three years. It could be any large house in a groomed Boston suburb."

"The problem, said Glenna Gelineau, a Waltham real estate agent who has watched the tortuous history of the house, was that its initial list price was too high. When the real estate market began falling, it never caught up. It was first listed for $849,000, at a time when the sales market was still strong. Despite 15 downward price adjustments, the house apparently never hit the right number.'

"'They've been chasing the market down ever since,' she said. Gelineau, who has been inside the house, said it 'shows nicely.' But, at some point, properties that languish that long without a sale are stigmatized among buyers and agents and become 'stale.'"

"The seller has now cut the price again, the 16th time, a $10,000 reduction to $534,900. Dave DiGregorio, the listing agent for the property, predicted the new price would attract an offer, because it's now priced 'below market value.'"

"In this challenging market, which is flooded with properties for sale, setting the 'right price' is, paradoxically, more critical - and more elusive. Last month only 3,739 single-family homes sold in Massachusetts, the lowest sales activity for the month of May since 1990."

"'The majority of things, unfortunately, are staying on the market way too long,' said Marybeth Muldowney, owner of TradeWinds Realty Group in Norwell."

"And buyers know they have the advantage. 'You're either going to take my offer or I'm going to walk' was the attitude of Steve Pelland and his wife, recent buyers in Holliston. 'We had set a budget, and that was it. I wasn't going over that by a dollar more,' he said."