What do you see in your housing market this weekend? Price reductions? "For Harver Bautista, these are the best of times in the mortgage-lending business and the worst. Mr. Bautista said that generally prices have fallen at least 10% or more in the past several months, depending on the neighbourhood. Home prices within commuting distance of Washington start at about US$400,000."

"'People selling in northern Virginia are taking the biggest hit. Prices there have already fallen to 2004 levels and even if they price it reasonably, they are dreaming if they think they are going to sell. There are too many listings to even look at,' he said."

Industry shakeups? "The woes of the subprime lending industry were felt Friday in Kansas City, as NovaStar Financial Inc. announced a 17 percent reduction of its 2,000-strong work force."

"A spokesman for NovaStar, Richard M. Johnson, said the cuts were made 'to reduce costs in line with what’s going on in the mortgage market. The company has been sued by investors who saw the company’s market value tumble by nearly $1 billion. NovaStar attributed its fourth-quarter results to higher-than-expected loan defaults."

"The news came a day after NovaStar reported to the Securities and Exchange Commission that on Feb. 12 the compensation committee of its board of directors approved bonus payments to NovaStar’s executives for their performance in 2006."

Changes in lending? "According to the experts, there is good news and bad news. Knoxville and East Tennessee, in general, are doing quite well in the housing market. The bad news is, people with bad credit, who may have been approved several years ago, may not be able to get a loan now."

"'It's a very scary time,' says Loren Riddick, a loan officer with United Capital Mortgage. 'The problem is now is that those lending opportunities may not even be there.''"

"They may find themselves in a situation where they have a 7 percent rate or 8 percent rate now and then in just a few months, they may be at 13 to 15 percent,' Riddick says."

Failed projects? "An empty Meeting Street lot that was supposed to be transformed into condominiums and townhomes will remain vacant for the time being. Across the street, Charleston-based Bennett-Hofford Co. plans to redevelop a 159-unit apartment complex, though specific plans have not been announced."

"The slowing housing market has factored into the decision to temporarily shelve 400 Meeting, as speculative investors have all but retreated from the condo sector, said Russ Davis, one of the partners."