The Washington Times has this report on the DC area. "The housing slump reached a new milestone this spring as home prices started to decline in many once-booming areas, recent reports show. The rapid slowdown in housing has particular repercussions for areas such as Washington, where the local economies are driven in part by real estate."

"'We're seeing a shakeout' in the mortgage industry, said Christopher Cruise, who trains mortgage loan officers. 'People were just answering the phone during the refi boom and making six-figure [incomes]. Now, the phone's not ringing any more.'"

"The slowdown is healthy in a market in which prices climbed too high, homes became unaffordable for young buyers and too many people were rushing into home purchases thinking that prices could go nowhere but up, he said. 'It was like the greater fool theory, there has got to be a fool out there who's willing to pay even more than me for this house. At some point, you run out of fools,' he said."

"Job opportunities are declining in housing-related areas such as architectural and engineering, according to an employment index."

"Paul Yalnezian, president of the real estate firm Right Home, said the housing slump has been precipitous in California. 'The number of able, ready and willing buyers has dwindled significantly. We are seeing more and more price reductions,' he said."

"Some industry observers fear the fast-declining housing sector is headed for a bust this fall when sales and prices typically decline from high-season levels. 'August will begin the buyers' market,' said Donna Evers, president (a) real estate brokerage."

""Robert Dye, analyst with Economy.com, said areas where housing soared the most are the ones most likely to see outright price drops in the months ahead. Among the areas where he sees a 'risk of correction' are the Washington area, California, Florida and Arizona."