More sellers slashing home prices

From CNBC's Diana Olick:

That heady buzz from the home buyer tax credit is now turning into a grinding headache, as home sellers realize their very temporary, government-induced catbird seat has now fallen back to earth.

As of July 1st, 24 percent of sellers on the market had cut their asking prices at least once, according to Trulia.com.

That's up 9 percent from the previous month and represents about $27 billion worth of vanished national home equity (or home equity hopes).

"The market is going to maintain a relatively flat trajectory, if not more like a saw tooth trajectory, for the near future, and meaningful recovery may not happen until some time in 2011, 2012," says Trulia's Heather Fernandez.