The Herald Tribune reports from Florida. "A Tampa Bay condominium converter bailed out of 40 units during the weekend by selling them at absolute auction. The auction raised $5.9 million through the sale of 40 units, meaning the average price was $147,500."

"The developer had been selling the bigger units at the complex for $300,000-ish. 'They sold at a discount,' said Carl Carter, a spokesman for J.P. King Auction Co. 'It is just a fact of life in the market right now.'"

"The move could be just the beginning of many multi-unit Florida auctions to come, Carter predicted. 'Right now we are at the front end of what we think is going to be a surge in condominium auctions,' he said."

"'Developers have to face the fact that they either have to get it sold or continue to pay interest and marketing costs,' Carter said. 'Some of these people are paying a lot in construction loans. When you're 12 months into a three-month business plan, it starts hurting.'"

"The auction was advertised as '100 elegant colonial-style condominiums in a gated community, 40 selling absolute.' That terminology provided the seller the ability to back out of any sales past the first 40, and he apparently did so."

"'We basically said we were going to sell 40 of these at absolute auction and another 60 with a reserve,' Carter said. 'If we had been getting higher prices, we would have put more on the market.'"

The Orlando Sentinel. "The Central Florida economy is expected to continue its pace of slower growth in December, according to the latest CFB Economic Index. Hampering the region's growth in recent months has been the ongoing struggles in the building-permit category, an indication of a slowing housing market. There has been a decline or projected decline every month since June."

"In September, the most recent month for which actual data are available, the region (was) weighed down by a 37.28 percent drop in residential building permits."

"Realtor Ronald Cornette serves as a rental division manager in Bradenton. Q: How has the spiraling inventory level of unsold property impacted the rental market in your area?"

"A: 'Those investors who thought they would rent their units at a rate high enough to cover expenses are shocked to find it's impossible. Rentals over $1,800 are harder to fill regardless of the value.'"

"Q: What's going on with prices, deposits and contract terms generally for rentals? A: 'While sales prices have risen sharply, rental prices have not. Rental terms are about the same, as well.'"

"Q: Are you seeing a lot of owners who thought they would be flippers? Do you have to educate first time owner-landlords? A: 'The flippers are having a hard time finding tenants at high rental rates. They may have to bite the bullet and take what they can get, even if the ink is red for now.'"

"Q: I was told by an experienced landlord that a 'good rental' generates 1 percent of a property's purchase price in 1 month. Is that still possible in this market today? A: 'The old 1 percent rule doesn't work any more. One half of a percent is more like what we're seeing now.'"

"Q: Are landlords surprised that the recent increase in prices for the purchase of real estate do not translate into higher rental incomes? A: 'A skilled and sophisticated investor doesn't expect rent to cover expense. The novice is the problem. They need to ask more questions when they buy.'"

The Miami Herald. "More troubled waters in residential real estate. This view comes from the trenches: More than 70 percent of real estate professionals in a University of Florida survey last week said it was a bad time to build condos; 46 percent said the same thing about single-family housing."

"There's more: Nearly half of this often-bullish group expects not just condos but also single-family home prices to drop. The number in the bearish camp has doubled in just two months."