The News Observer reports from North Carolina. "Weakness in the Triangle housing market probably will continue through the middle of next year, the region's builders were told Monday. 'We will see some real, negative numbers in both new and resale home transactions, as they compare to a year ago, during the next six months,' Helm told members of home builder associations for Wake, Durham, Orange and Chatham counties."

"'We now have to wait for the market to find a way to absorb the excesses and imbalances, a large resale inventory and a fairly large new home inventory, in a market short on buyers,' Helm said."

"The Triangle's housing market has felt the slowdown largely because many people moving to the area are having difficulty selling their homes in distressed markets."

"Production builders have begun slashing prices and offering incentives. Homeowners, facing more competition, have begun reducing their selling prices."

"In October, resales dropped for the first time in almost four years, 17 percent more homes had price reductions than a year ago and the inventory of homes for sale grew by 6.6 percent, with 14,538 homes on the market, according to the Triangle Multiple Listing Service."

"Residential building permits were down 24 percent in the third quarter. The Triangle's home building industry is one of the area's most important economic drivers, with ancillary effects on a range of businesses from bankers to furniture retailers."

The Sun News reports from South Carolina. "There were 147 bankruptcy filings in Horry and Georgetown counties during the first nine months of this year, compared with 647 filings the same period a year earlier, according to the U.S. Bankruptcy Court. Experts say that is because law changes that took effect in October 2005 made it more expensive and difficult for consumers to file for bankruptcy protection."

"'The debt problems are no different than they were before the new laws,' said Michael Drose, whose law firm in Myrtle Beach specializes in bankruptcies. 'The new laws didn't change the fact that people are still drowning in debt.'"

"Foreclosure statistics, another indicator of individuals' economic standing, also can be misleading, experts say. There has been a slight decrease in the number of home foreclosures in the Carolinas this year compared with 2005, according to RealtyTrac. The declining local numbers are the result of more real estate investors buying up distressed properties before they hit the foreclosure auction, according to Michelle Hallstrom, owner of (a) real estate agency in Myrtle Beach."

"'The number of people having problems is about the same as last year or before,' Hallstrom said. 'The numbers just make it look better because more homes are being bought before they go to auction.'"

"The higher delinquency rates are showing up at some Grand Strand banks, according to their U.S. Securities and Exchange Commission filings. For example, the amount of charged-off loans at Beach First National Bank nearly tripled during the first nine months of this year, compared with a year ago."

"Non-performing loans more than doubled at Beach First, even though the total amount of all loans increased by 53.5 percent. Conway National Bank said in a Sept. 30 SEC filing that the ratio of charged-off loans to all outstanding loans increased to 0.06 percent during the first nine months of 2006, compared with 0.03 percent for the same period a year earlier."

"Walt Standish, president and chief executive officer at Beach First, said loan delinquencies at that bank are largely the result of a slowing real estate market. Mortgages comprise 76.9 percent of the bank's $404.1 million loan portfolio."

"'Some people have had the unrealistic expectation that if it took 30 to 60 days to sell real estate last year, it would take the same time this year,' Standish said. 'Now it's taking 120 days to 180 days, and some people didn't plan for that.'"

The News Press from Florida. "The slide in Lee County's home-building industry continued in November as the number of permits for single-family homes fell to levels not seen in almost four years."

"Builders in Cape Coral pulled 152 permits, the fewest since 81 in December 2002. In unincorporated Lee County, which includes Bonita Springs and Fort Myers Beach, 357 permits were issued, the fewest since 299 in March 2003, according to figures released Monday."

"'They're pretty much in a situation of just waiting because there's so much inventory, and you don't want to add inventory' with almost 14,000 existing homes already on the market, said said Michael Timmerman, managing director for Florida at Hanley Wood."

"In Fort Myers, which typically has smaller numbers of homes being built, 32 permits were pulled in November. That's down from October's 51 but more than three times the 10 pulled in November 2005."

"About 77 percent of the single-family home permits were for work in Lehigh Acres, valued at about $63.4 million. That's up from October's 74 percent. Even in Lehigh, said real estate broker John McWilliams, 'builders are seeking ways to tweak their home/lot packages below $200,000 because they know that's what has to happen for their building careers to continue.'"

"Jack Bowles and his wife recently closed a deal with America's First Homes on a three-bedroom, two-bath house in Lehigh for $240,000. They'll move from Naples, where he works."

"Bowles said he probably got twice the home for his money than in Collier County. 'In Naples, I wasn't able to buy a home for less than about $300,000 or $350,000,' he said. 'We spent a whole lot less than that and got a brand new home with a whole lot of amenities.' Now, he said, he has a 90-mile commute but the lower price for his house will more than offset higher gas prices."

"One factor that could cause a turnaround, Timmerman said, would be a continued drop in land prices. That's beginning to happen, he said, as people who paid $40,000 to $50,000 for a lot in Lehigh are willing to sell for $30,000."