A housing bubble report from northern Virginia. "Grave concerns for the future of Falls Church’s City Center project are being voiced at the highest levels of City Hall, the News-Press has learned, given the precipitous collapse of the residential condominium market throughout the Washington D.C. region and the nation."

"Land assembly and development prospects have run into serious roadblocks, as the combination of the high prices being asked for the land and the sudden downturn in the condo market has everyone involved giving pause. While critics complained that the area would become a 'condo canyon,' it was argued by developers and City officials that only construction of 1,000 to 1,500 high end residential condominiums in the commercially-zoned area would make it financially viable, overall."

"However, the condo market, and the residential real estate market generally, began to cool off over the course of last summer, and began to nosedive in the fall. One developer told the News-Press that with the glut in the condo market now, prospective buyers are weighing other factors more carefully."

"Realtors in Harrisonburg and Rockingham County sold 113 homes in March, down 14.4 percent from the same period in 2005, when 132 homes were sold. Data from the Virginia Association of Realtors also show that year-to-date sales of 276 homes have flattened to 1.5 percent growth over last year’s first quarter total of 272."

"Real estate agents are seeing some reductions in market prices. 'That doesn’t mean people are not getting what the house is worth,' (broker) Michael Pugh said. 'It means maybe they priced it too high to begin with and were expecting a windfall.'"

The Baltimore Sun. "The housing market in the Baltimore area showed broad signs of cooling in April, the first month of the crucial spring selling season, according to sales data released yesterday."

"Year-over-year price appreciation dipped to its lowest rate in more than two years, and the average price actually fell in one county. Sales volume sagged more than 13 percent. Homes took longer to sell everywhere but in the city, and the number of homes on the market more than doubled compared with April 2005."

"In Carroll, the average sales price dipped 2.76 percent, the first decline in any jurisdiction since 2002. In Howard County, the number of homes listed for sale jumped to 1,381, from 562 in April a year earlier."

"Real estate agents blamed sellers who want last year's prices in this year's market. 'It's not as much a seller's market, and buyers are beginning to negotiate prices,' (agent) said Melvina Brown in Howard County. 'Buyers are not coming in over the asking price; they're coming in either at the asking price or negotiating on the price.'"

"Brown said one of her sellers got an offer on a Columbia townhouse just four days after it was listed but turned down the contract because it offered less than full price. Two more contracts have come in since that were not as good, she said. 'We're waiting now, and the seller is willing to make concessions,' she said. 'We've offered some money toward the closing costs but left the price the same, but we may have to look at reducing the price.'"

"'The housing boom is over,' said Celia Chen, director of housing economics for Moody's. 'We're seeing the down side of the housing cycle.'"