The Capital has this report on the Annapolis, Maryland housing bubble. "Anne Arundel County home sales dropped 31 percent last month, as owners continued to cut prices in a softening real estate market, area real estate agents and analysts said this morning."

"But that's the bad news. The good news is that even though the median price of a home sold in June was more than $9,000 less than the previous month, things are much worse elsewhere in Maryland and around the country."

"The median price for a county home was $351,750 according to a Rockville-based listing service. Since last month, the median dropped from $360,000. But in a telling sign of the continuing slowdown, only 750 county homes sold last month, a 31 percent drop from the same period a year ago, according to MRIS. The total value of those homes was $317,922,308 last month, a 30 percent drop from a year ago."

"'We're seeing the same trend,' Frank Nothaft, chief economist and vice president at Freddie Mac said. 'Now we're moving into a more typical market and a sharp slowdown.'"

"Candice Friday sells homes just outside Annapolis, where condos go for between $350,000 and $1.9 million. Many homeowners have become frustrated because they want to sell faster. 'It's taking quite a while,' Ms. Friday said. 'I have two listings here, and they've been sitting two to five months.'"

"Broker Butch Kline said homes are staying on the market longer because sellers don't want to come down on their prices. The ones that do will sell more quickly, he said. For example, an Annapolis single family home listed for $439,000 sold within three weeks, he said. Last year, he would have listed the home for $475,000."

"'You have to have a seller who is reasonable,' he said. 'If they price higher, because they say, 'well the house next door sold for this,' than it will sit.'"

"Home prices dipped in Queen Anne's County. The median sale price for a home there was $329,000, a nearly 11 percent plummet from that month a year ago. Only 79 homes were sold last month."

"Realtor Mary Thompson said although inventory piled up, homes that are priced fairly are getting more attention, she said."

"'The houses that are priced even at 5 percent (more than worth on the market) are being looked over,' she said. 'Price is everything and the prices are correcting and that's good for the market. Because the bigger the boom, the bigger the crash.'"