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This summary from RealEstate Weekly (recommended newsletter, my previous entry) sums up the market quite nicely.

Conditions in the housing market have continued to deteriorate, if you're a seller. If you're a buyer, you are wringing your hands with glee.

The latest survey of market conditions from HouseHunt Inc., an Internet real estate firm, showed just how tough it is: All six of the market measures the Web services uses in its surveys of real estate agents across the country posted declines in the third quarter.

First, the time a house stays on the market before selling has continued to lengthen. Only 26% of houses now sell within 60 days compared with the 45% of houses that sold that fast in the first quarter and 75% that sold that quickly two years ago.

Second, 52% of real estate agents say there are more sellers than buyers in the market versus 36% who say the opposite; 12% report a 50-50 split. Two years ago, buyers outnumbered sellers 66% to 14%, with 20% of markets split 50-50.

Third, the inventory of unsold houses is growing. The number of agents reporting a "good supply" of homes on the market hit 89% at the end of the third quarter, up from 81% in the first quarter and up from just 36% two years ago.

Fourth, barely half of sellers say they are getting 95% or more of their asking price when they sell. That number was 75% in the first quarter of this year and 90% two years ago.

Fifth, only 25% of sellers report multiple offers on properties for sale, down from almost 80% two years ago.

Finally, selling agents confirm that home-price appreciation has cooled considerably. Only 11% report prices increasing 10% or more and one-third report price declines. Two years ago, one-half of agents said prices were rising 10% or more and none reported declines.

Reference
Real Estate Weekly Newsletter, December 1, 2006