The Examiner reports from Maryland. "In 2006, the real estate market in the Baltimore region took a tumble. Local real estate experts believe that the market’s success in 2004 and 2005 spoiled many property sellers, who had a hard time adjusting to more pedestrian sales in 2006. Deborah Ford, a professor of finance at the University of Baltimore, sees a reason for the decline and a need for sellers to adapt."

"'The demand is not there, and people aren’t buying anymore because they’re scared they would be buying at top price,' Ford said. 'The only way sellers can sell property now is to lower their prices.'"

"Recent data from Metropolitan Regional Information Systems Inc. shows just how much the market has come down. Total sold-dollar volume dropped from around $13.01 billion in 2005 to $11.79 in 2006, a decline of about $1.22 billion for Baltimore City and Anne Arundel, Baltimore, Carroll, Harford and Howard counties."

"The biggest drop was in Anne Arundel, where there was a 12 percent, or nearly $450 million, dip in sales for 2006."

"Thomas Hough, president of the Anne Arundel County Association of Realtors, sees things a bit differently. 'Last year was probably our third best year ever, with 2004 and 2005 being No. 1 and No. 2,' Hough said."

The Capital in Maryland. "Although county home sales fell 20 percent last year from 2005 and a glut of unsold inventory has affected housing starts nationwide, home builders like Winchester Homes in Edgewater are still confident about Anne Arundel's luxury-home market."

"'They can afford to buy houses like that because they are shrewd economic people,' said Charlie Buckley, a Realtor in Anne Arundel County."

"The opportunity for home builders to buy land for single detached waterfront homes has become increasing rare, said John Kortecamp, executive VP of the Home Builders Association of Maryland. 'They're bulletproof,' Mr. Kortecamp said. 'You've got a commodity that literally the market cannot get enough of.'"

"Mr. Buckley said home prices for waterfront homes in Anne Arundel County dropped 10 percent last year from 2005, giving buyers an extra incentive to look for a bargain this year."

"Despite headlines about the real estate market that have given even the richest buyers pause, Larry Burrows, president of Winchester Homes, said he's confident about luxury buyers here. His company is offering closing cost assistance for buyers."

"'They have been selling,' he said of the homes in the Homeport community. 'There's no question that the market for the last year has been adjusting.'"

The Gazette. "This spring, eager Maryland homebuyers will 'jump off the sidelines,' to make purchases, says one housing expert. But they might not find the surplus of new, single-family houses on the market they expect."

"As builders continue to throw attractive incentives to prospective buyers this winter via the media, such as free Audis, boats, decks, and irresistible home upgrades, the 'public is assuming there is a great inventory of unsold new homes out there,' said housing analyst Kenneth Wenhold."

"Wrong, Wenhold said. Builders are just trying 'to cut each others’ throats' to lure buyers with incentives, said Wenhold, regional director of Metrostudy. The incentive trend began early last year as home sales slumped."

"The good news for builders, he said, is that 'we are starting to see traffic pick up. 'They are not discounting prices, though, because there is still weakness in the market,' Wenhold said."

"Gopal Ahluwalia, staff VP for research at the National Association of Home Builders’ Economics Group, foresees stability.'I think that in the spring, things will have leveled out when the inventory has gone down' nationally, Ahluwalia said."

"But maybe not in Maryland, said Kathleen Maloney, executive VP for the Maryland State Builders Association. 'We are hoping by the spring some of our builders will have been making corrections, and amending start dates to get rid of inventory,' Maloney said."

"Judging by how counties are 'pulling' residential building permits, she said, there should be an upswing in March."

"'What we have been seeing in the market is that speculative homes are sitting,' Maloney said. 'You are seeing builders offering closing cost incentives, waiving origination fees and administrative costs, plus free upgrades on carpets and kitchens, landscaping and fencing, which makes it a great for buyers. One condo builder in Ocean City is giving buyers a boat.'"