The Florida press notes a report calling on builders to stop building. "Home construction throughout the Treasure Coast soared in the first quarter, pushing inventory levels to a record high, according to an industry report released Tuesday. The number of starts adds more inventory to an already saturated market for existing single-family homes, said MetroStudy."

"'Historically, these are very high figures. They're actually the highest amount of finished inventory I have ever seen,' said Brad Hunter, a housing economist for MetroStudy. 'I think builders should be concerned.'"

"Levels were high in St. Lucie County, with 747 homes started during the first quarter, compared to the 528 during the first quarter of 2005. There were 844 finished vacant homes in the county on March 31."

"'This is not the time to build commodity homes unless they (developers) can build them better and/or less expensively than anyone else,' Hunter said. 'Speculators have an overabundance of commodity homes, all at competitive prices.'"

"There were 897 homes under construction or finished and vacant in Martin County, about a 14-month supply. Indian River vacant homes rose to 598 units during the first quarter, which drove the inventories to a 13-month supply."

"Housing experts said the numbers don't bode well for builders on the Treasure Coast. 'This is the reason we're seeing builders offer so much in incentives,' said Richard Hope, president of Treasure Coast Builders Association. 'Buyers are seeing a widening of choices, so builders are really having to stand out with their products.'"

"Builders also are competing with investors who want to flip properties they bought at lower prices last year, said Jack McCabe. A stagnating re-sale market isn't helping builders, he said. 'Builders who continue to put up spec homes without a signed contract, well, that's just foolery on their part,' McCabe said. 'There has been a dramatic shift in the market since the speculators left the market.'" .

"McCabe said that with sellers no longer able to push up prices, the rental market is changing. He said the growing trend of South Florida re-conversions, apartments converted to condos and put back on the rental market by their investor-owners, has entered the Treasure Coast."

"'The Treasure Coast is just saturated with for-sale and for-rent signs. What does that tell us about the reality of market conditions?,' McCabe said."