The Ledger reports from Florida. "Polk County builders must be getting that sinking feeling. The county's building permit total fell a record 82.6 percent in September as the housing market continued to falter in the wake of last year's boom. 'Pretty dismal, huh?' said Joel Adams, executive VP of Lakeland-based Highland Homes. 'No doubt, the slowdown has filtered through.'"

"September's percentage decline beat the previous record of 62 percent in August, when permits fell to 373 from 980 a year earlier."

"Permits in unincorporated Polk, which accounts for the bulk of local permitting activity, fell to 180 last month, a whopping 85.7 percent drop from 1,256 the year before. Winter Haven's 24 permits were down 84.9 percent from 159 last year."

"Elsewhere, permits fell from 50 to 6 in Lake Alfred; 48 to 4 in Lake Wales; and 35 to 6 in Bartow. The only city to register an increase was Lakeland, where permits climbed to 58 from 46 last year, up about 26 percent."

"'I think we're seeing a market adjustment,' said Mike Hickman, president of Lakeland-based Hickman Homes. 'We had a couple years in 2004 and 2005 where it skyrocketed disproportionately with the population coming into the county. That's a speculative market.'"

"Now that investors have fled the market, home inventories are piling up and potential buyers are 'on the sidelines' waiting for builders to offer their best incentives, Adams said."

"'I really think we're at the bottom of the trough in Polk County,' Adams said. 'Now how long we stay at the bottom is the question.'"

From Ocala.com. "A once-frenzied housing market in Marion County has cooled substantially, and sellers are getting creative in order to strike a deal. 'There are quite a few incentives being offered, now that we have more inventory here,' said Wilbur Van Wyck, president of the Ocala-Marion County Association of Realtors. 'Negotiability is back.'"

"(Broker) Bert Meadows said that paying off a buyer's closing costs has become a common practice. He said it's an enticer that's become more prevalent as home sales continue to wane. 'It's definitely a buyer's market,' Meadows said."

"Heath Fleming, owner of Fleming Mortgage Services, agreed that the buyer now holds all the cards. 'A year ago, a seller could name his price and say 'That's it. I'm not going to go one dollar less,' Fleming said. 'That's not the case anymore: Now you see signs all over saying reduced, reduced, reduced.'"

"Edie Ousley, public affairs director for the Florida Home Builders Association in Tallahassee, said builders statewide are looking to unload properties in a flooded market and are offering a smorgasbord of incentives. 'They include complete appliances, trips being offered,' Ousley said. 'We've even seen some builders offer to put new cars in the garages.'"

"Because of the flooded market, many buyers in other areas of the country have demanded that cash be given back to them as part of the closing terms, according to an AP report this week. But Van Wyck and Meadows both said they haven't seen the straight cash-back proposals being proffered in Marion County's market."

"'I would think banks would have a big problem with that,' Van Wyck said."

"'I always tell my buyers keep money aside for a rainy day; you don't want to be real estate rich and cash poor,' Fleming said. 'To get the seller to pay closing costs is definitely an advantage to the buyer.'"

"But Fleming said if a builder or broker ever offered straight cash as part of the closing terms he would advise his client against taking the deal, especially if it meant an inflated value for the home. 'I would never advise anyone to buy a house above the appraised value,' he said."

"As for the downturn in the county's housing market, Fleming said he expects the lagging sales to continue locally at least for another year. Fleming said Central Florida is a different animal. 'We have a tremendous growing baby-boomer population, so the market is going to adjust itself differently,' Fleming said."