WBOC 16 reports from Maryland. "A housing slump in Ocean City is keeping many condominiums empty. There are currently 1,683 units on the market, while construction companies are building at least 500 new units. The buying slow-down is also impacting single-family homes, with 166 on sale in West Ocean City and 120 in Ocean City."

"Realtor Bud Church has been working in the business for more than 30 years. He said housing trends are typically unstable, but usually a depression comes with some warning. 'The market stopped quicker than I've ever seen it stop. There have been slow downs before but it was a gradual curve but this time we went over the edge,' Church said."

"According to Church, there was a housing boom three or four years ago. 'People called speculators would come into town, buy a unit, and sell it within a month or two,' he said. 'They would make a profit of $25,000-$30,000, but that quick turn around is just not here anymore.'"

The Capital from Maryland. "Anne Arundel County home prices edged up slightly last month, after falling along with the number of homes sold during the first half of the year. In many cases, as their homes sit unsold for months, sellers are lowering their prices in an attempt to entice buyers who are holding out for a better deal."

"January was the only month this year in which sales were up. This isn't surprising, considering the oversupply of inventory, market watchers said."

"Frank Nothaft, chief economist at Freddie Mac, said the slower housing market has 'certainly had a drag effect' on the economy,. 'We've taken a hard hit here in the Baltimore-Washington-Annapolis area,' Mr. Nothaft said."

"Mr. Nothaft said he expects home values in the higher-priced neighborhoods to decline this year. 'The name of the game is it's a buyer's market,' he said. 'If you're a seller, you're probably going to be more willing to negotiate on terms of the contract.'"

"Dr. Joe Cater, president of Market-Economics in Annapolis, said a good chunk of homes for sale are coming from the upper tier of the market - $500,000 or more. But he said he expects sellers will bring prices down. 'We're starting to see signs that we've reached the bottom,' Dr. Cater said. 'What's going on is some price adjustments.'"

"Bill Lambros, an agent in Annapolis, said sellers should hold their ground and not reduce prices any further. He said a waterfront home in Edgewater that was listed for $950,000 and now sits on the market for $775,000. Even with the lower price, the home hasn't sold."

"'I think sellers are shooting themselves in the foot,' Mr. Lambros said."

The Daily Progress from Virginia. "In the Charlottesville area’s crowded housing market, sellers this summer are looking for a way to stand out. Want a free high-definition television with your new condo? The Woodlands of Charlottesville has a 42-inch set waiting for each new buyer."

"Want reduced closing costs on a house? Realtors across the area are telling sellers to pony up the cash." "'Interest rates are low, there’s high inventory and sellers are more negotiable than they were a few years ago,' said Realtor Ray Caddell."

"Dave Phillips, CEO of the Charlottesville Area Association of Realtors, said there are 3,400 properties for sale in the area. The inventory represents a 12- to 13-month supply, Phillips said."

"The last few years have been a booming seller’s market in the Charlottesville area, as low interest rates, a strong economy and a string of awards naming the city one of America’s best places to live all contributed to a buying frenzy."

"Builders, meanwhile, were planning or constructing hundreds of homes. Combined with the general housing market slowdown, the market suddenly seemed to have more houses than it could handle."

"While free trips or a new TV might seem like good incentives, Caddell says cash is the best option. Caddell said that today’s buyers know that the supposed freebies are often being factored into the price some other way."

"'TVs are a gimmick,' Caddell said. 'If you’re buying a $350,000 house, how much does an $850 TV matter?'"

"Lori Chapman, the president of the Realtors’ association, said another attractive option is offering buyers a home warranty. 'Anything to make it easier for buyers to get in,' Chapman said."

The Times Dispatch from Viginia. "Foreclosures nationwide, and in Virginia -- rose dramatically last month from a year ago, according to RealtyTrac." Virginia (households had) one foreclosure for every 1,678 households. A year ago, few people here faced foreclosure: One foreclosure was filed for every 12,549 households."

"'We noticed that spike in Virginia,' said Daren Blomquist, spokesman for RealtyTrac. 'Investors are saying it was like a switch was turned off,' he said. 'The course reversed very quickly. We are seeing a dramatic shift in quite a few areas.'"

"Steve Baugher, executive director of the Virginia Association of Mortgage Brokers, said he is monitoring the sharp rise in foreclosures. 'It is a little concerning,' Baugher said. 'It will take a year to see how this market shakes out.'"

"Baugher said the subprime mortgage market, such as interest-only loans and some adjustable rate loans, may have contributed to the problem. But it isn't solely to blame. 'A lot of people got into houses on a shoe string,' he said. 'They overextended.'"

The Washington Business Journal. "There's nothing hot about the housing market in D.C. this summer. Sales of single-family homes fell in all local jurisdictions in June, and median prices tumbled everywhere except Montgomery County, according to data compiled by Metropolitan Regional Information Systems."

"Economists and other market observers don't expect a rebound in residential sales until 2008 at the earliest."

WMDT 47 from Delaware. "More discouraging news about the housing bubble burst, it's hitting the Eastern Shore hard. The state of Delaware suffered a record number of foreclosures in the last year. Experts don't think things will get better in the near future."

"You finally bought your dream home, but now you can't afford it. A variable or deferred interest rate lured you in. Now, you're paying more than you bargained for. In Delaware, it's happening in record numbers."

"Realtor Bruce Wright says, 'Many times you can find a larger home and be able to get in them with an adjustable rate. You can get a much larger home for less money.'"

The Philadelphia Inquirer from Pennsylvania. "Mortgage foreclosures grew 87 percent nationwide in June, and by 8.2 percent in the Philadelphia area, according to a report."

"But a wide disparity in the number of defaults in South Jersey compared with defaults in Southeastern Pennsylvania left regional economists questioning the data's validity."

"The Pennsylvania counties, including Philadelphia, had a 30 percent decline, while the total for Camden, Burlington and Gloucester Counties more than doubled, according to RealtyTrac."

"'There is no question that there will be a pickup in the number of foreclosures going forward, especially when the rates [for] subprime loans taken out in 2006 begin adjusting,' said Frank Nothaft, chief economist of Freddie Mac."

"Many subprime borrowers are trying to refinance out of their loans, but tighter lending standards put into place by federal regulators in the last six months are working against them."

"'Six months ago, most of my [refinancings] were the standard kind, with homeowners trying to cash in equity or a lower fixed rate,' said Brett Warren, president of Buyer's Home Mortgage Inc., of Abington."

"'Today, most people seeking to refinance are subprime borrowers, and we can't place their loans because of those tightened standards,' Warren said."

"'Abusive lending with teaser rates and exorbitant fees, which can give borrowers negative equity from the get-go, are clearly at play,' said Lawrence Yun, senior economist for the National Association of Realtors. 'Delinquencies and foreclosures are further anticipated to rise as more loans are scheduled to reset.'"

"'Foreclosures are a lagging variable,' he said. 'Even if the real estate market begins booming tomorrow, the foreclosure rate will continue to rise.'"