Below is an excerpt Calculated Risk. They are citing an survey BofA performed in August of 4,000 agents in 39 of the largest housing markets. The actual report is an interesting monthly read as well.

Study: Housing Market Getting Worse
From the Dow Jones Newswire: August Home Data Weak

Sales and home prices fell at a faster clip than expected and inventories climbed further in August as the housing market continued to deteriorate, according to a Banc of America Real Estate Agent survey.
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The study, released Tuesday, shows consumer sentiment toward buying a home soured in August.

“Consumers are shifting from a mindset of waiting for a better price to one where they do not want to buy at this time, no matter what the price is,” the study said.

“We think this shift in sentiment is particularly worrisome, as it could take time before the mindset shifts back and could lead the downturn to last longer,” Banc of America analyst Daniel Oppenheim said.

The study also found that prices fell sequentially for the 11th consecutive month. Prices tumbled in 82% of the markets surveyed. In July, only 79% of the surveyed markets fell.
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Oppenheim said the survey shows prices, incentives, selling times and traffic were all worse than real estate agents had expected. “We expect that conditions are likely to worsen further through the fall/winter and into next spring,” he said.

“We think this excess inventory makes it unlikely that the market will rebound in the near term,” he added.

Raymond James analyst Rick Murray said the study backs up his finding that consumer sentiment has definitely shifted.

“Consumers are just of the mindset at this point that it is not the time to be buying a home and this becomes increasingly problematic for housing,” Murray said.

“Inventory levels right now would suggest that this downturn is probably going to last a period of years as opposed to quarters,” the analyst said.

My comment about don’t be surprised if there is a bump was more or less a defensive statement just in case the August numbers don’t represent the same trend that we have been seeing. In my mind I think August should follow suit however I think we will start to see an inventory reduction. However not because of a strong blip up in sales, moreover due to many people throwing in the towel…. so yeah it is part seasonal for people to punt at this time of year. So I expect over the next 4 months for the inventory tide to go out a bit….then the tsunami rolls in around February/March.

Again though I am not seeing a strong run in sales but I have seen a few more pendings. For instance two weeks ago for the infamous 3/2.5 condos in 92130 there were only 3 pendings. Today I checked and there were 8 or 9. However they were all at the lower end of the price ranges.