I just returned from the California Association of REALTORS meetings in Sacramento, where I am a director.  While there, I heard the Association's 2007 Midyear Housing Market Forecast.  They are projecting  a 14 percent decline in single-family home sales this year, and forecast a 1.8 percent increase in the median price of a home.

"Sales are expected to fall to 410,500 units in 2007, a 14 percent decline from the 477,460 pace recorded in 2006, according to the forecast. The median price of a home will reach $566,500 this year, a 1.8 percent increase from the $556,640 median for 2006."

 This is more of what we have seen since last summer.  The numbers are actually good when you look at it historically, but way off from what some have come to expect in the torrid market we have the 4 or 5 years previously.  This is good news for buyers looking to shop and find the right home.  Not good for flippers who want to make a quick dollar on an investment.  Bottom line, if you are a long term buyer, you shouldn't be too worried about the market.  At least you will have time to make a decision and a large inventory to choose from.