Far-flung exurbs hard hit by housing downturn

WASHINGTON (Reuters) – While the housing downturn has depressed once-thriving real estate markets around the nation, far-flung suburbs of major cities have suffered the most abrupt market correction.

Home construction in these distant exurbs has slowed and prices and sales have fallen more than those of close-in suburban neighbors since a five-year housing boom ended in the summer of 2005.

Average home prices in Loudon County, Virginia, 35 miles outside of Washington, D.C., fell roughly 11 percent in 2006, according to the Northern Virginia Association of Realtors. By contrast, Virginia’s Arlington County, which hugs the nation’s capital, saw a price decline of only about 2 percent.

Reuters