A report from the Madison Park Times in Washington. "Despite what you may have read or heard, the Seattle real estate market isn’t crashing. The sky isn’t falling. It is, however, a market in transition beyond the usual seasonal slowdown. It’s not the bubble bursting; there’s no need to panic. But all signs point to a normalization of the real estate scene compared to the last few years, and especially the crazy environment of this past spring."

"The fact is, there are a number of other major markets around the country that have transitioned from a seller’s market to a heavy buyer’s market. The amount of foreign money pouring into real estate in these places has dried up. Foreign investments are no longer taking up extra inventory in existing housing and new construction."

"While the bubble isn’t bursting here, we are shifting to more of a neutral market. A record number of homes entered the market in June — the most since the crash in 2008. So, there is a lot more inventory available to buyers. Some neighborhoods have plateaued in terms of price — home prices can only rise so high before buyers just won’t or can’t buy."

"While we saw a record number of homes come on the market in June, we’ve also seen a record number of price reductions. If you’re considering selling your home, or are already on the market, you’ve got to recalibrate your expectations. Especially in terms of pricing strategy: sellers are typically behind the market by several months. Price right for the market now."

"As an example, I had buyers looking at a home that had been on the market for 44 days, asking $2.2 million (priced too high), and we went to see it when it was cut to $1.998 million. My buyers made an offer of $1.95 million with contingencies. The listing broker was dismissive and defensive, asking 'How dare you?' We withdrew the offer."

"The buyers agreed to be patient. We waited two weeks, resubmitted the same offer, and it was accepted. However, the sale didn’t go through — the inspection found significant water damage and resulting rot that had not been listed on the sellers’ disclosure. It would have been an expensive nightmare to remediate."

"Last spring, a seller wouldn’t have had to accept a normal offer, with any negotiation and/or contingencies. And a buyer may well have won a bidding war, only to find out much later about the water damage."