A report from the Seattle Times in Washington. "The number of homes sitting unsold in King County has doubled in the past year as buyers continue to retreat from the once-hot market — pushing prices in the city of Seattle down even further. Inventory countywide jumped 86 percent among single-family homes and 188 percent among condos in October compared to a year prior, according to the Northwest Multiple Listing Service. It was the largest year-over-year increase on record, dating back to 2000 — breaking the previous mark set just a month prior."

"In the city of Seattle, the median home price fell to $750,000, down $25,000 in one month and down $80,000 from the record set in the spring. That’s not a normal seasonal drop – prices in the city actually went up during those time frames last year."

"A few more people are putting their homes on the market but the shift continues to be largely the result of buyers taking a step back; countywide, sales fell 16 percent in October from a year prior."

"Sellers have reacted by cutting list prices faster than any other metro area in the country. And buyers are now negotiating prices down even further, as the average home is selling for below list price for the first time in four years."

"For the first time in a while, there’s even a single-family house with a yard for sale in the city limits of Seattle for under $300,000: A small, older home in Highland Park that failed to sell for $328,000 last month is now offered at $299,000."

"Altogether there were 17 houses for sale in the city for under $400,000 on Tuesday, including seven with price cuts. Ken Graff, a broker with Coldwell Banker Bain in Seattle, noted he put a town house in Magnolia on the market in April – right before the apparent peak of the market – and it quickly got 11 bids and went way over asking, selling for $800,000. In September, he put the neighbor’s identical town home for sale and it stood unsold for three weeks before selling for $725,000."

"'Buyers are still having to pay a premium for Seattle-area properties, but it lacks the frenzy we’ve seen in the last few years,' Graff said. 'People can be a little more measured now, which is a good thing.'"