The Palm Beach Post reports from Florida. "Palm Beach County home-price growth slowed in the second quarter compared with last year in the steepest three-month decline on record, according to a government report released Tuesday that shows the housing slump deepening."

"Palm Beach County's one-year home-price growth ranks 22nd out of 275 metropolitan areas, the federal report said. Although on its face that sounds like good news, it's offset by a dramatic drop in the number of homes sold year over year and a huge expansion in inventory. The number of homes for sale in Palm Beach County rose to 22,206 in July from 7,701 in July 2005, according to a local real estate firm."

"There is another important aspect of Fannie Mae and Freddie Mac that suggest the results shown in the Palm Beach County report, in particular, should be evaluated with caution, an analyst said Tuesday. 'Fannie and Freddie,' as they're known in the mortgage industry, have low shares of adjustable-rate mortgages, the analyst said, but Palm Beach County's share of adjustable-rate mortgages is high."

"'The last estimate I saw was about 57 percent for purchase loans,' said consultant James Lawler. 'The OFHEO index for your area would contain very few observations.'"

The Sun Sentinel. "For the first time in 35 years, Palm Beach County public schools started class with fewer students than the previous year. District officials anticipated a small decline this year, with hurricanes and high housing costs driving residents out of the county. But actual enrollment was about 2,200 students below even those projections."

"Officials say housing costs may be the biggest factor in the decline. More than 12,000 rental units have been converted to condominium units, demographer Art Wittman said. 'I've had parents tell me they could not afford to live in their own home,' said Carol Blacharski, principal at Loggers Run Middle, west of Boca Raton. 'If I did not already own a home, I could not afford to be here.'"

The South Florida Business Journal. "Here's a fresh indicator of problems in the condo and townhome market: More than 50 unbuilt projects are listed for sale in the region. Some developers who fail to sell may find their projects going back to lenders. Miami hosts a majority of the more than 50 projects."

"'It's a problem because a rental community developer won't pay more than $35,000 a unit land cost, compared to $60,000 to $80,000 for a typical condominium project,' CB Richard Ellis VP Robert Given said."

"In Broward County, Brenner Real Estate Group President Scott Brenner had a contract with a major northeastern homebuilder firm that took a pass on the project at the last minute. 'The buyer got concerned about the market,' Brenner said, although he declined to name the publicly traded firm."

"There is no single reason for the glut of offerings. Some are deals falling through, others are back on the market after financing turndowns and some developers are just worried about market conditions. (Developer) Luis Dominguez said he was not concerned about the oversupply of units in Miami and blamed the 'doom-and-gloom reports' about the market on the media."

"There's no question that Miami faces an oversupply of units. Consider the numbers: Since 1995, fewer than 15,000 residential units have been completed. Right now, almost 18,000 units are under construction. Nearly 63,000 units are in the permitting pipeline. And that's just in the city of Miami."

"In some cases, the slowdown will lead to a reduction in projects, and help the region's workforce find homes they can afford. 'Some deals just didn't make sense from the get-go,' said consultant Jack McCabe. 'Market price dynamics work in both up and down markets, and we are in a down market right now.'"