Just like Merced, Atwater's home prices are dropping as homes are on the market longer. Sellers are slashing prices by $10,000-$20,000 and offering incentives to buyers. Also, there's no jobs to support the high home prices. Now that the market has soften, homes are typically on the market for 4-6 months, if not longer. I've seen one house that has been listed for 2 years! The seller finally switch agent, although it's currently still on the market. It's all about pricing. You can price the home to sell or you can price it to stay on the market. Homeowners need to realize this. You might think your house is worth more, but guess what, buyers don't necessarily agree with you. We're in a buyers market, they drive the market.