The Dow Jones Newswires report on Florida. "One Bal Harbour may look like just another sign of excess in Miami's oversaturated condo market, but to developer WCI Communities the luxury tower represents crucial cash. WCI launched the project during the housing boom, when developers rushed to fill what seemed to be an insatiable demand for housing, particularly condominiums."

"In the time it took to earn approvals for and build the condos, the housing bubble popped. That has left Florida awash in a record number of condos. South Florida alone has about 65,000 listed for sale."

"There's been an 80% drop in new condo sales in the last year and tens of thousands of more units should flood the market in the next 24 months, leaving 'many years' worth of inventory,' according to broker Mike Morgan. 'From here on out, it's just all downhill,' he said."

"Warned Alex Barron, an analyst with Agency Trading Group: 'It's going to be a bloodbath.'"

"Industry watchers wonder if the building, which has already been delayed, will actually open on time. After touring One Bal Harbour Saturday, Morgan said a lot of work remains. 'I did not see enough activity to demonstrate they are even trying to hit a September closing,' he wrote in an email to clients. 'With the overall market imploding, this is not a good sign for WCI.'"

The Naples News. "In a conference call, Jerry Starkey, WCI’s president and CEO, called it a 'tough quarter,' saying the company continues to focus on generating cash flow, reducing costs and moving inventory. 'It continues to be a tough environment for homebuilders throughout the country and for WCI particularly in Florida -- and more specifically in the tower business,' he said."

"In the quarter, WCI recorded impairments and write-offs of $36 million before taxes. New orders declined more than 50 percent. Over the past 16 months, WCI has reduced its work force by more than 33 percent, shedding 1,300 employees. More cuts are coming, Starkey said."

"(An) upturn may not come for another four or five quarters, he said. The company has also 'put the skids' on land spending, Starkey said."

"In the tower division, revenues declined 99 percent to $2.1 million from $214.4 million a year ago, in large part due to defaults. There were 68 defaults, far outnumbering the 11 new orders."

The Orlando Sentinel. "A prominent South Florida developer with more than a dozen big condo projects under way in the Miami and Fort Lauderdale areas is pressing ahead with plans for a condo-hotel in Celebration near Walt Disney World, despite a slowdown in condo sales and projects statewide."

"The Related Group will open a sales office this fall for the Icon Celebration, a 441-unit condo-hotel with hotel services, Chairman Jorge Perez said this week. The Related Group has more than 11,000 condo units under construction or in the final stages of preparation for development in South Florida, mainly from West Palm Beach south to Miami."

"'We have slowed down, but we are continuing to move forward,' Perez said."

"He said he will begin construction on the first of two buildings for Icon Celebration as soon as he has firm commitments for about 130 units, about 50 percent of the first phase. He said he could not predict how long it would take to sell that many units in today's market, plagued by slumping demand and falling prices."

"'That's the million-dollar question,' Perez said."

"One downtown project, the Lexington at CityPlace, recently filed for bankruptcy protection, while others have been put on hold as they compete for investors and buyers of conventional condos. 'There's just a lot of them out there,' Anne Rogers, broker in Orlando, said of the condos now for sale."

"Florida's soaring home-foreclosure rate was still 78 percent higher last month than it was a year ago."

"'I don't think the worst is here yet,' said Dan Dowling, president of a mortgage brokerage in Altamonte Springs. 'For many of them, there's just no escape, no remedy,' he said, other than to let the home revert to the lender through foreclosure."

"Dowling said the level of frustration among those trying to sell their homes month after month in the face of record gluts of properties for sale is rising even in Central Florida."

"The 'credit crunch' scare of recent weeks has made people even more fearful, he said, and some are beginning to sell their homes for 50 percent to 60 percent below the appraised value, in desperation, if they find a buyer willing and able to close quickly."

"'These are people with equity, and options, but they just need the money. There's just a general sense of depression among a lot of sellers out there,' Dowling said."

From TC Palm. "Frank Lodico's business has more than doubled in just a year. 'We're seeing more than five times the amount of foreclosures here,' said Lodico, VP of (a firm) which serves foreclosure papers on Treasure Coast homes. 'I just had (served) six this morning...and I've never seen it like this before in my whole 12 years here.'"

"'On July 30, I surpassed what I processed during the entire year of 2006,' said Nancy Bennett, supervisor of the civil division for the St. Lucie County Clerk of the Courts. 'Now we're having to come in on Saturdays to process them — last Friday alone 60 (foreclosure) cases went up before a judge.'"

"'The biggest resets of (adjusted rate mortgages) will work its way through October and March,' said Brad Hunter, director of the housing research firm Metrostudy in West Palm Beach."

The Miami Herald. "If you're in the market for a mortgage these days, you'd better have good credit and be willing to come up with a substantial down payment on your dream home."

"'Lenders are definitely demanding better credit scores, and they're stricter with appraisers' to avoid inflated home values, said Ines Hegedus-Garcia, a Realtor in Miami Shores."

"Lenders have pulled back from these large loans if they exceed the threshold for purchases set by the government-sponsored entities Fannie Mae and Freddie Mac. 'We are seeing a rolling credit crunch,' said Kenneth Thomas, a Miami-based economist and banking analyst. 'Money is still out there, but [banks are] going to be requiring a lot more' to get loans done."

"Carlos Fernandez-Guzman, senior executive VP of Neighborhood Banking for BankUnited, said the bank has reacted to the changing lending environment by requiring 20 percent down payments as well as escrow accounts."

"'We have tweaked the credit lines further,' said Fernandez-Guzman, who noted the bank isn't in the subprime business. 'That's not to say that there isn't room always for tightening a little bit more.'"

The Associated Press. "The National Association of Realtors expects membership rolls to decline this year for the first time in a decade. The Florida Association of Realtors currently has about 154,000 members compared with more than 161,000 last year at this time, but expects flat membership by year-end."

"Nancy Riley, president of the Florida Association of Realtors, said membership more than doubled since 2001 and stood at 169,434 last year."

"'Most people getting out got in just to make a quick buck,' Riley said, blaming tax issues, insurance costs and the media for the perception that Florida's real estate market continues to falter. 'It's not doom and gloom,' Riley says, insisting the state is gearing up for another population boom."

The Palm Beach Post. "Palm Beach County's property appraiser on Tuesday mailed more than 620,000 property tax notices, and the preliminary bills show two things homeowners haven't seen in years: Falling values and falling tax bills."

"Of the 620,647 residential and commercial properties in Palm Beach County, fully 364,835, or 59 percent, are worth less this year than last, said John Thomas, assistant director of residential appraisal services at the property appraiser's office."

"Palm Beach County home prices have been in a slump since late 2005, as a speculative frenzy ended and the number of homes for sale continues to grow."

"Thomas couldn't say how much the average decline was, but some homeowners saw drops of 10 percent or more. Because the property appraiser's values are based on the price on Jan. 1, Thomas predicted another drop in values on next year's tax bills."

"'At least in my opinion, that's just the beginning of the declines,' Thomas said. 'Unless things change radically, you'll probably see it go down again next year.'"