Few Buyers for Over-Prices Market

'"Before 2007, we're going to see more decline in home prices in more areas of California," said Michael Carney, professor of finance and real estate at California State Polytechnic University, Pomona. "The real issue is how long it's going to go on and how severe it's going to be."'

"Appreciation in Sonoma, Santa Clara, San Francisco and Contra Costa counties was essentially flat."

"Among the largest real estate markets, the steepest drop was 6.7 percent in San Mateo County. Other decreases were seen in Marin County (2.3 percent); San Diego County (2.2 percent); and Alameda County (1.5 percent)."

""More and more, sellers are reaching the conclusion: 'maybe now is the time to settle, because we may not gain much more now by waiting,'" DataQuick analyst John Karevoll said."

"Buyers have become increasingly reluctant to jump into a market that many consider overpriced. Homes are taking longer to sell, creating a glut of inventory."

'"There's a lot of potential buyers out there who are just kind of holding off a little bit," Karevoll said. "The sense of urgency that was there a year ago just isn't there now."