The Pensacola News Journal reports from Florida. "In a year marked by falling home prices, record-high inventories and shocking property tax hikes, putting a positive spin on the Pensacola area's 2006 housing market would seem a difficult task."

"But some local Realtors are...striking a similar theme: 'Things aren't that bad, and it's a great time to buy.' Veteran Realtor Al Ingram says sellers finally are reducing unrealistic prices for their homes and letting the market price their property."

"The Escambia-Santa Rosa inventory of unsold homes remains at record levels. At the end of last week, the Pensacola Association of Realtor's MLS had more than 6,400 homes on the market, and that number excluded houses 'for sale by owner.'"

"That consistently high number, which has hovered above 6,000 for the past six months, worries Al Muller, co-owner of an independent Pensacola firm that monitors area housing sales."

"'The biggest question coming up with people I talk to is, 'With more than 6,000 homes for sale, just what do those people do when they sell?' Muller said. 'How many have left the area because of hurricanes, high insurance rates and property taxes? That's the critical question.'"

"He points to recent U.S. Census data that show Escambia is one of only two counties in Florida, the other is Monroe, that have shown a net loss in population between 2003 and 2005."

"Milton Realtor Bill Wallace said that despite the recent fall in home values, he believes prices remain high, and need to pull back even more."

The Orlando Sentinel. "Residential construction is slowing here and across the country, and layoffs have been thinning the ranks of home builders everywhere, raising fears of a job bust that could ripple through the rest of the economy."

"'The housing souffle has finished baking and is out of the oven and cooling quickly,' said Sean Snaith, a UCF economist."

"For Metro Orlando, Orange, Seminole, Osceola and Lake counties, Snaith projects that construction employment will experience rare, year-over-year declines beginning in the third quarter of next year before turning positive in the second quarter of 2008. He expects much of the same thing to happen statewide. The housing boom of recent years was never sustainable, said Snaith."

"The phone has been ringing lately at Terry's Electric in Kissimmee, and many of the calls have been from electricians looking for work now that home building in the area has started to slacken."

The News Press. "Home construction across Southwest Florida has slowed dramatically in the past few months. In October, Lee County builders pulled 698 home construction permits in October, less than half the 1,409 pulled a year ago."

"When housing slows, furniture sales typically begin to slow three to six months later, said Barry Edelman, general manager of Havertys in Fort Myers. 'I think everyone has seen it drop off,' said Edelman."

"John Munzenrieder has seen plenty of ups and downs while running a furniture store chain for 23 years. But he's finishing his final ride on that roller coaster. Munzenrieder announced that his stores across Southwest Florida would close."

"Warren Jalving, president of La-Z-Boy Furniture Galleries in Fort Myers, said November and January tend to be the busiest months locally, and November has been 'difficult, very difficult.' 'We sort of got spoiled and now it's back to reality,' said Jalving, who has had a local store for 18 years."