The Fairfax County Times has this update from Virginia. "Oh what a difference a year makes in Northern Virginia's once red-hot home real estate market. For most of 2005, Realtors were bemoaning a lack of inventory as desperate buyers all but wrestled each other to make the first offer. Ask those same Realtors. Or better yet, ask this year's home sellers whose properties have been on the market six weeks or six months instead of six minutes-with no buyer in sight."

"The overriding reason for what Realtors insist is a cooling market, rather than a market free-fall, appears to be the burgeoning inventory of homes for sale."

"Even a cursory count of 'For Sale' signs in many neighborhoods suggests the change. According to the Northern Virginia Association of Realtors' figures, in Fairfax County there were 2,184 active listings, year-to-date, in June 2005 and 6,506 in June 2006, a 198-percent increase."

"In Loudoun County, during the same period, there were 1,473 actives in June 2005 and 4,052 in 2006, a 175-percent increase. Prince William County and the cities of Falls Church, Fairfax and Alexandria saw similar gains."

"Although many sellers are dropping their asking price, affordability remains an issue for many prospective home buyers throughout Northern Virginia. Potential buyers, for their part, are often looking for bargains, and many of those buyers who for one reason or another can delay their purchase are doing exactly that, experts say."

The Rappahannock News. "Last year, Rappahannock County and Northern Virginia experienced a surge in real estate sales. Referred to in the media as a real estate 'bubble,' this surge created a seller's market. Now, home sellers and real estate firms are experiencing a 'slowdown' and indications seem to show that the 'bubble' has popped."

"'Eventually it just got down to the point that people recognized that things had gotten out of hand,' explained Sam Snead, a longtime student of Rappahannock real estate."

"The majority of real estate on the market in that area caters to buyers interested in living in sub-developments with easy access to Washington, D.C. Generally the Rappahannock County real estate market is considered to be a separate entity. 'Our buyers and our properties are different,' pointed out agent Thorne Auchter."

"According to MRIS, in June 2005, the total dollar volume of sold real estate in Rappahannock was $1,399,800. This year, the same month yielded $525,500, a decrease of 62.49 percent. In addition, the average sold price of those homes has decreased by almost 25 percent. 'The number of people calling the office is definitely less,' said (realtor) Denise Chandler."

"Snead believes that the strong competition between real estate consumers was exacerbated by news coverage about the 'real estate bubble,' debating when it would end and what the consequences of the artificially raised prices might be. 'I blame it on the media,' said Snead."

"Most prospective home buyers have to rely on the sale of a current home in order to be able to afford the purchase of a new one. With prices artificially inflated by the 'bubble,' these consumers are having trouble selling their old homes, which slows sales down. 'Ninety percent of people have to sell a house to buy a house. It's a Catch-22,' said Snead."

"Although the market is slowing down, and a slower market means less sales and less commission, area realtors were united in their lack of concern about the perceived bursting of the bubble. Auchter compared the exaggerated seller's market of the bubble to 'picking vegetables before they are ripe.'"

"According to Snead, as demand drops and homes sit un-bought, prices will drop until they reach a range more comfortable for home buyers and the banks that loan to them. 'The market is correcting itself, and that's what will bring prices back into line,' said Chandler."

"Snead also believes that a market which has swung back to favor the home buyers is not necessarily a bad thing. 'There's opportunity in a good market, but there is also opportunity in a bad market. Now, there's going to be some bargains out there,' said Snead."