One homebuilder is having problems in Florida. "WCI Communities said second-quarter earnings would likely disappoint because of dismal orders at many of its high-rise condo and single-family housing communities in Florida."

"WCI, a leading builder of traditional and tower residences, today announced order trends for the second quarter of 2006 as well as its recent share repurchase activity. The company is continuing to experience order activity well below year-ago levels, in part due to significantly lower traffic at many of its Florida communities as well as the company's decision to delay the release of several of its towers because of softness in market demand."

"For the first two months of the 2006 second quarter, combined homebuilding orders declined almost 50% over the same period a year ago. Traditional Homebuilding orders were down 42% vs. year-ago levels while Tower Homebuilding orders dropped 84%."

"'Due to slower demand and increased resale inventory on the market, the company has taken steps to slow down construction activity and capital spending until there is equilibrium between supply and demand in our markets,' said WCI CEO Jerry Starkey. 'While most of our Florida communities have seen sales activity below our expectations this year, we believe the historic economic and demographic drivers of the Florida homebuilding market will eventually overcome the 'wait and see' sentiment of many would-be consumers today.'"

"'It appears the condo market in South Florida has come to a standstill, and we do not anticipate an increase in demand any time soon due to the current inventory glut,' said Raymond James analyst Rick Murray. 'We anticipate the current supply/demand imbalance will weigh on the earnings outlook for public builders for some time,' added Murray."

From the Herald Tribune. "Developer Harold Muxlow has specialized in offering three-bedroom, two-bath homes with a two-car garage for $189,900. The 1,861-square-foot home sells for about $102 per square foot. In Sarasota County, it is not at all uncommon for big-name builders to charge well over $200 per square foot for new residential construction."

"The key would be selling hundreds of units, notes Muxlow, who envisions eventually moving as many as 500 in North Port. That could be a challenging short-term proposition, given how much the new home market has slowed in what is arguably the fastest-growing city in the region."

"North Port officials had expected to permit more than 5,000 single-family homes this year, but in May issued just 74 permits. That followed only 88 in April."

"Muxlow has felt the slowdown in the housing market. He said buyer traffic is off by as much as 80 percent. But he remains bullish about his ability to make money from his business model. 'It's all about volume.' He still hopes to move 200 units this year. The profit if he does? A very cool $1.9 million."