MONTEREY, Calif. -- Home sales are slowing down on the Monterey Peninsula and there are more homes for sale in the area than there have been in more than a decade, prompting many to wonder what it all means for buyers and sellers.

Real estate agents said the market hasn't been this slow on the Peninsula since the early 1990s, when prices flattened out in most places and dropped in others.

In just the last three months, the number of homes on the market doubled and even tripled in some communities. Rising interest rates and falling consumer confidence are part of the reason, experts said.

"I think the speculators are getting out because they fear what might happen. I think people are concerned about the economy and I think people are concerned about interest rates going up," said Lance Monosoff of Central Coast Properties.

"Our market isn't going to crash, in my opinion. It's just going to stay flat for the next year or two," said Nick Glaser of Sotheby's Real Estate.

Agents said there are buyers out there, but they are waiting in anticipation that prices might come down. Meanwhile, sellers are keeping prices anticipating a rebound in the market.

That standoff is keeping a lot of homes on the market.

What are selling are homes that are priced right, which some say are at 2004 levels, as well as entry-level homes.

Agents also said buyers are making more aggressive offers well below the asking price.