Home Sales Down Compared to Last Summer

FAIRFAX, Va. - Buyers, sellers and real estate agents in northern Virginia will be watching home sales after Labor Day to determine if the real estate bubble in their own backyard has finally burst.

Sales in Fairfax County dropped almost eight-percent in July compared to last year. In Arlington, they tumbled nearly 19-percent due to a sharp decline in condo sales. Only Prince William saw a modest three-percent rise.

And in Fairfax, the average price a single-family home or townhouse fell $19,000 from June, down to $597,000. There were more houses for sale, and they stayed on the market longer.

It's good news for would-be buyers who have waited on the sidelines or taken part in frantic bidding wars.

But the Northern Virginia Association of Realtors says sellers shouldn't panic. They note that overall, home prices are holding and even rising. They predict annual increases around 10-percent.

(Copyright 2005 by The Associated Press. All Rights Reserved.)