The Washington Times has this report from DC. "Home sales are plummeting at double-digit rates in the Washington area, the National Association of Realtors reported. Markets in Virginia that enjoyed the most rapid appreciation during the boom, are now experiencing a faster decline and tougher adjustment than slower-to-bloom markets."

"Virginia home sales plunged 23.9 percent in the spring quarter, compared with a year earlier, the association said, while Maryland and D.C. sales fell by 16.5 percent and 15.6 percent, respectively. The sales decline in Virginia put it in the same league as California, Florida and Arizona, where the biggest run-ups occurred."

"The fall has been steepest in the condominium market, where investors and first-time buyers have a large presence. Scattered metropolitan areas and resorts with overbuilt condo markets are seeing outright price drops, including the District (and) Virginia Beach."

"'The U.S. housing market is entrenched in a slowdown,' said analyst Ryan Sweet. 'So far, all indications are that the housing market is slowing in an orderly fashion,' Mr. Sweet said, 'but we are still early in the housing slowdown.'"The Daily Press. "Only two cities in the country saw a greater increase in home prices than Hampton Roads from the second quarter of 2005 to the same period in 2006. The statistics come even as many real estate agents in the area have said for months that the market has slowed. There are also thousands more homes for sale right now than at most times in the past two years."

"'Yes we went up very fast. We peaked. In the meantime there will be people dropping prices, there will be bargains to be found,' said Donn Irby, past president of the Hampton Roads Association of Realtors. 'The frenzy is gone. That's over,' said Perry Pilgrim, president of the Virginia Peninsula Association of Realtors."

"One caveat: A more zeroed-in look at the numbers does show a potential slowing-down. Statistics specifically for the month of June, showed that home prices only climbed 8 percent from June 2005 to June 2006, according to the Virginia Association of Realtors. That marked the first time since 2003 that Hampton Roads did not see double-digit price growth in a 12-month span."

The Fauquier Citizen. "For various reasons (a greater inventory of homes, higher interest rates and higher gas prices, for example), the residential real estate market recently has favored buyers rather than sellers, according to local Realtors."

"'This is a very normal process,' veteran Realtor Joe Allen said of the housing slowdown. 'I've been through this three times.'"

"He believes some properties are priced 15-20 percent 'too high,' largely because homeowners want what their neighbors got a dozen months ago. 'It's understandable they want last year's prices,' Allen said, but also unrealistic."

"Jim and Cheryl Warner put their home on the market last October. The Warrenton couple wanted $509,000 for the place, which includes three bedrooms, three -and-a-half bathrooms and a finished basement. They knew putting their home up for sale in the fall probably would produce little buyer response."

"But the Warners thought they'd get at least a few inquiries. As it turned out, only one person came by the place in five months. After talking with their Realtor, the Warners dropped the asking price to $450,000 for their Brenda Court home."

"That generated a 'fair amount of traffic,' (about six visits) but no offers, Warner admitted. About a month ago, the couple cut the price to $435,000, or $12,600 less than the county commissioner of revenue values the home for tax purposes."

"The price reductions trouble the Warners because 'any time you drop your price, it's pure equity you're losing,' he said. 'We can't go any lower, (because) we're turning around and buying into (an expensive) market just like this one.'"

"A decade ago, the Warners paid $158,000 for the two-story, 2,600-square-foot home."

"Despite the hardship, Cheryl Warner will continue to commute until the right buyer knocks on their door. 'We can do that, but it's putting a strain on our family that we don't want to continue with,' her husband said. 'The waiting comes with a price. We had no idea it would take this long.'"