Housing Market Is Showing Some Cracks --- Overall, Sales Are Healthy, But Demand Is Slowing In a Handful of Cities
These days, economists have plenty to worry about. Add what's happening in Leesburg, Va., to the list.</br></br>In that Washington, D.C., suburb, real-estate agent Ray Mauk has been trying to sell a four-bedroom, two-story house for the past two months. He figured it would sell "in a day or two," given the recent frenzy for homes in the area. But instead, he has been forced to reduce the $395,000 asking price three times -- lowering it by $5,000 on each occasion. "The market," says Mr. Mauk, just "isn't there."</br></br>Despite a slowing economy, the U.S. housing market has held strong and is widely credited with having helped to stave off a recession. But in a handful of cities across the country, cracks are starting to appear in the housing market's once-solid foundation.</br></br>From San Francisco to Minneapolis to Denver, some real-estate agents say demand is slowing and the number of available homes is increasing -- often a sign of weakness. Meanwhile, home builder Centex Homes, a unit of Centex Corp. in Dallas, is offering a $10,000 discount or free amenities on some new homes in the Atlanta area to stimulate demand. And in Dallas, where inventories are up 24% from last year, price reductions are becoming more common.</br></br>Although home sales overall remain healthy by historical standards, discounting and rising inventories "are the indications that usually start off telling me we're going to see a [tougher] market," says Petey Parker, vice president of Ebby Halliday Realtors in Dallas. "It's a different market" than it was a few months ago, adds Marsha Sell, a sales associate at Coldwell Banker Buckhead Brokers in Atlanta. "Every agent I talk to is experiencing fewer showings on their listings."