Update from the Washington DC Area

The Washington Post reports "Real estate groups in the Washington area have also reported declines to varying degrees. The Northern Virginia Association of Realtors, for example, said December sales were down about 24 percent from December 2004 in an area that includes Alexandria, Arlington and Fairfax counties. In Loudoun and Prince William counties, sales were down roughly 14 percent. Prince George's County sales fell about 5 percent."

"Candy Clanton, an associate broker in Fairfax, has seen just how much the landscape has changed over the past several months. She listed a four-bedroom house in Woodbridge -- with new siding, windows and driveway as well as a renovated kitchen -- for just under $350,000. It was among the least expensive in the neighborhood, Clanton said, but last week, after three months, her client took it off the market. "I think the buyers who do have money . . . are all waiting to see what is going on," she said. "My phones are not ringing and my houses are not selling."