The Daily Progress reports from Virginia. "Sales of homes in Virginia slid nearly 27 percent in September, marking the largest percentage drop this year, and the 13th consecutive month of slower sales. The median price, with half the houses selling for more and half for less, fell 9 percent to $199,975, according to figures released yesterday by the Virginia Association of Realtors."

"The Richmond area took a hit as well, with sales of all homes down 15 percent last month. 'We continue to remind consumers that comparing this year's numbers to last year's extraordinary market isn't a fair comparison,' said Kit Hale, president of the Virginia Association of Realtors."

"Still, 'there is no doubt that consumers are more cautious and taking their time in making a purchase decision,' Hale said. 'We're also hearing that sellers are waiting until their homes are sold before purchasing another in order to avoid placing a contingent contract.'"

"The market here is stable compared with Northern Virginia, where sales fell 35 percent in September, said Wes Atiyeh, president of the Richmond Association of Realtors. 'Northern Virginia increased so fast that the only way it can go is down.' There the median price fell to $445,000 in September from $480,00 a year ago."

Thw Washington Times. "'There will still be plenty of bad housing news for some time to come,' said economist Alexander Paris. 'The length and depth of major boom-bust sectors is generally underestimated,' he said, noting that the technology sector is still struggling to come back six years after the tech bubble burst in 2000."

"While housing may experience a temporary rebound after the steep decline of the past year, Mr. Paris said, the fallout from the housing bust is just beginning. Inventories of existing homes dipped a little last month, but inventories of new homes have shot up by 50 percent in the past year and are forcing builders to aggressively cut prices and offer deep incentives to move houses, he said."

"Speculators, who drove the market for condominiums in Washington and other areas, are dumping properties to limit their losses, driving down prices, he said. 'That price weakness will spill over to all new and existing homes,' he said."

"Also, after the housing boom prompted about 25,000 new jobs a month in real estate, mortgage finance, construction and other housing-related areas, the industry started shedding jobs at the rate of about 10,000 a month in March, he said."

"The potentially large economic effects from losses, defaults and foreclosures in housing will unfold slowly, and have just begun to show, Mr. Paris said. Foreclosures are up 53 percent from a year ago, with about half of them the result of homeowners being unable to afford payments after their adjustable rate."

"The leading edge of a large potential problem, Mr. Paris said; around $2 trillion of adjustable rate mortgages taken out to buy and refinance houses in 2004 and 2005 will be adjusting upward in the next two years to three years. 'That is around 20 percent of all mortgages outstanding, with many of them high-risk loans with low introductory rates as low as 1 percent to 2 percent, back-end loads and other techniques to squeeze high- credit-risk buyers into higher priced homes than they could afford.'"

"'Corrections of big credit-induced bubbles usually don't end until we see pictures of more than a few handcuffed industry executives on TV,' he said."

The Washinton Post. "One reason prices are dropping is that sellers are having a harder time finding buyers. Nazirahk Amen thought a buyer would snap up his three-bedroom, three-bath Cape Cod in Takoma Park. He was so confident that he bought another house nearby and moved. For the past two months, he has been making two mortgage payments, and recently reduced the price $25,000 to attract a bidder."

"'Of course it's frustrating,' Amen said. 'I'm looking for this to end. It's frustrating, to say the least.'"

"Charles W. McMillion, an economist and president of District-based MBG Information Services, said he saw little sign that the decline was ending. 'I don't see stability when sales continue to decline sharply and price continued to decline sharply,' McMillion said. 'It's pretty hard to argue we've reached a sustainable level.'"

"Peter Morici, an economist at the University of Maryland, said reduced inventory of unsold houses may mean 'frustrated buyers are removing their homes from the market.' Morici said that major price adjustments will be needed to bring the market back into balance."

"'The speculative frenzy of recent years is causing a major adjustment, and the happy talk of Realtors is prolonging the process,' Morici said. 'The absence of realistic analysis about the extent of overvaluation is characteristic in an industry that sees nothing but an upward progression for values, but houses like any other asset can be overpriced. . . . Things are likely to get worse before they get better.'"