TheStreet.com reports on the slowdown for one Florida homebuilder. "St. Joe operates mainly in northwest Florida, which had seen a boom in development. St. Joe hoped that demand would continue, as it sold homes away from the beach and even in the woods. To put it plainly, it ain't happening, judging by recent events at a few St. Joe developments."

"St. Joe was scheduled to release 12 condo units to the public last week in its Watersound Beach development. However, the sale was postponed, according to a St. Joe sales associate. The sales office does not yet have a date when the release will take place and was not given a reason for the delay."

"It was due to a lack of demand, according to a real estate agent in the area, who requested anonymity, as he primarily sells St. Joe properties and is in litigation with the company."

"Meanwhile, prices are plummeting in the development. The real estate agent is currently listing a lot for $465,000 that his client bought for over $800,000. He said he'll be lucky to get $450,000 for it."

"A look at the prices of lots for resale shows either some desperate or unrealistic sellers. For example, one lot is being offered at $1.3 million, while the one next to it (which appears slightly larger) sold for $660,000 in March, and we know prices haven't doubled in the past three months. Next to that one, a larger lot is being offered at $1.285 million, while an adjacent and similarly sized property is listed at $595,000."

"At Rivercamps, a 1,500-acre community in Bay County, Fla., with permits for up to 450 homes, sites have ranged from $84,000 to $849,000 and have averaged roughly $200,000. Assuming a 3,000-square-foot house, the cost to own is well over $1 million."

"'Rivercamps is a total joke,' according to one hedge fund manager who is short St. Joe. The source, who requested anonymity, questions who is in the market to spend that kind of money and to be stuck in 'a buggy pine forest on a bay,' or at other St. Joe developments that are off the beach, when beach property is available in other parts of the country for roughly the same price or less."

"He believes the company parlayed its success in the Gulf of Mexico to entice previously successful speculators to buy up lots in much less desirable locations."

"Demand was certainly high at Rivercamps when the company had its initial release in October 2003. At that time, 314 buyers submitted offers for 23 lots, according to a company press release. The fervor was still there in February of last year when 281 buyers submitted offers for 37 home sites."

"However, there are currently only three houses (including one that's a model home) completed. 'Nobody is building,' according to the fund manager, who said he did not see a single new home under construction when he visited Rivercamps last month."

"While you can be the only Porsche dealer in town, if people aren't in the market for Porsches, it doesn't matter that there's no competition. That's the situation St. Joe is in. Many properties are very costly and targeted toward the second-home buyer, most of whom are not buying in this environment (in fact, some are bailing out)."