Some housing bubble updates from Florida. "According to Barbara Raney, North Port Building Department manager, in the fiscal year ending in September 2005 the department issued 4,114 permits for new residential housing. Raney said, 'On the average, there are 350 permits issued each month.'"

"In March, 344 permits were authorized, but in April only 88 permits were issued. 'They've stopped building,' Raney said."

"The recent scramble for lots In North Port by out-of-state buyers, and the county's abandoned lot auction, have taken some land off the market. But overall, the real estate slowdown and the glut of lots that are not moving mean lower lot prices and a more favorable situation for home buyers. While investors high-tail it out of town, North Port is gradually becoming a buyers' market."

"According to the Palm Beach Board of Realtors, there were 31 closed sales of single-family homes between October and April, for a total sales volume of $161.89 million. For the same period the year before, there were 70 sales for a total volume of $312.2 million. Palm Beach broker John Pinson referred to 'more and more for-sale signs' all over the island, fewer sales through MLS and a flurry of price-reduced notices climbing the facsimile tree."

"Speculative-buying days 'are over' in West Palm Beach condos, where the inventory is at an 'all-time high,' Pinson said. As a result, brokers see 'developers undercutting prices on those who bought already.'"

"Earlier this month, David Lereah, chief economist for the National Association of Realtors, said the boom is winding down to an expansion, one in which 2006 is a 'down year' and 2007 will be up. 'Where [Lereah] and I may differ is more on extremes. He calls 'the bubble' a balloon. But the next time a housing bubble slowly deflates will be the first time a housing bubble slowly deflates,' said (economist) Joel Naroff."

"But if a buyer has read about a slowdown and thinks he can get the unit for $750,000, 'they'll offer $650,000,' he said. 'What we haven't seen are the three most dangerous words in real estate: low-ball offer. Not yet. When a market turns and buyers have the upper hand, we see low-ball offers,' Naroff said."

"Unlike Lereah, Naroff expects 'significant price cuts in some markets.' Looking at West Palm Beach and other Southeast coastal markets, Naroff said many new condominium projects were targeted by speculators. 'Those are areas that at first glance, run the potential for being under real pressure for the next six months,' Naroff said."

"The rise in foreclosures that analysts predicted would follow an easing in lending restrictions, low interest rates and creative mortgage products has emerged in metropolitan Jacksonville. The five-county metro area experienced a 39 percent increase in foreclosures over last year's first quarter, or 3,579 foreclosures for the first three months of this year compared with 2,570 for the same period in 2005."

"'Part of this is also about consumer spending,' Barry Chandler, CEO of Oceanside Bank in Jacksonville said. 'You've borrowed your way into a home with all the trimmings and before you know it, there's a big life adjustment and you're in trouble.'"

"'A good number of national builders have captive mortgage companies, which I suspect means a lot more creative financing programs,' (banker) Bill Hammel said. 'The good is it means more affordable housing, but it also means some people got into more than what they could afford.'"

"'More money became available for risky borrowers and you only have to be in a house six months before refinancing,' said Patrick, co-owner of First Coast Trust. 'Banks and lenders have been doing what the government wants, getting people into homes.'"