The Herald Tribune has this update from Florida. "The Southwest Florida market for rental properties is all whacked out. In the affordable segment, the supply of apartments and rental houses is tight. But at the higher end of the market, there is a glut of properties aching for tenants. Observers say speculative fever, which gripped the real estate market during the past few years, is to blame."

"Most of the neophyte landlords figured it would be easy to rent their properties at prices that would cover their costs until it was time to sell. But it is now dawning on them that the rental market is not a no-brainer, and selling out during the current sales slump is not an option unless owners are prepared to dump their properties at significant discounts."

"'Eventually, the market will adjust,' said Al Holmes, the president of the Sarasota Landlords Association. 'But during that time, low-end renters and landlords who bought properties at high prices are going to get their butts kicked.'"

"The problem, is that the new owners of the units want to cover their mortgages, taxes, insurance and maintenance costs. So they are offering units for as much as $200 more than the market will bear. As renters refuse to pay such high prices, the units remain empty."

"'There's a six-month supply of condos on the market right now,' said Scott Corbridge of Sarasota Management and Leasing. 'That means that if no new rental units come to market, it will take six months to rent all the units we already have.'"

"One way to resolve the glut would be for owners to sell their properties and get out of the rental business. 'But there's no one buying,' said Holmes. Sales have slowed sharply and the real estate market is flooded with inventory."

"Sales have slowed sharply and the real estate market is flooded with inventory. 'Owners will either have to drop their prices to a point where it makes sense for the next landlord to invest, or hang on until rents rise or real estate sales pick up,' he said."

"Another way to solve the oversupply problem would be for landlords to drop rents. 'Instead of making money, landlords will see money going out.' Holmes said. 'It's called an alligator, and it will eat you every month.'"

The Palm Beach Post. "For the past few years, the chatter has been about the torrid housing market. One Realtor we know says three waiters at a moderately priced restaurant were discussing their real estate deals when she lunched there recently. 'And my doorman wants to know if he should hold on to three condos in a Boynton Beach development that he bought last year,' she said."

"But amid this frenetic buying and selling, eventually there needs to be an end user, a buyer who actually intends to live in the home, or someone will get caught holding the bag, in this case, the condo contract. Many of those pre-construction contracts signed at the height of the boom are now coming due. 'It could get ugly,' condo king Jack McCabe says."