The St Petersburg Times reports from Florida. "A Tampa developer made the biggest land gain in its five-year history Friday, scooping up 8,300 home sites in seven counties from financially troubled Lennar Corp. Lennar's apparent fire sale is the latest domino to fall for what once was the top builder in the Tampa Bay area."

"On Friday, the same day it closed the Metro purchase, Lennar sold 11,000 home sites in a $525-million deal with the real estate arm of Morgan Stanley, for 40 cents on the dollar."

"Metro officials wouldn't disclose the sale price of its purchase, but spokesman Rob Ahrens said Lennar was driven to liquidate its holdings amid the residential market slowdown."

"Another Metro spokesman said Tuesday it's still unclear if buyers have already reserved any of the home sites, which includes Waterleaf, a 140-acre development in Riverview. 'Right now, we're still trying to digest a rather large meal,' John Heagney said."

The Palm Beach Post in Florida. "More big land grabs like the one Lennar Corp. and Morgan Stanley announced this week are in the cards for areas with a glut of home lots, and smaller investors should watch for opportunities, a national real estate expert said during a conference here Tuesday."

"'Don't wait for Goldman Sachs to be announcing that they've done 12 deals in Florida,' said Stephen Blank, a senior fellow at the Urban Land Institute."

"Buying distressed loans looks like a savvy move for 2008, said Blank, a former investment banker and researcher for the institute. Blank's advice resonated at the Tradition development during the institute's conference in Port St. Lucie, where home prices have posted double-digit losses since the boom."

"The ailing Fort Lauderdale-based builder Levitt and Sons got the go-ahead in bankruptcy court last week to turn over about 1,000 lots in the Tradition community to its lender."

"Locally, it's now clear that housing prices simply rose too quickly, said Hal Roberts, president of wholesale banking for National City Bank and a panelist at Tuesday's conference."

"Buyers aren't happy unless they're paying less than the previous buyer paid, said Jeff Chamberlin, president of the Stuart-based real estate firm, SLC Commercial."

"'The good news is, the same people that got us in trouble are the same people that are going to get us out,' Chamberlin said. 'Because there's nowhere for South Florida to grow but this way.'"

"Workers probably will feel the pinch. More layoffs, lower bonuses and lifestyle changes are likely, especially for people in the financial services industry, Blank said."

The News Journal from Florida. "The number of permits issued to build single-family homes in Cape Coral dropped to 12 in December, the lowest in memory and down from 153 in November 2006, according to the city."

"Permits in unincorporated Lee County also dropped: 60 for single-family homes, down from 91 in October and 357 in November 2006, according to a county report issued Monday."

"In the past year, actions have been filed on a record 11,700 Lee County foreclosures."

"Meanwhile, the number of foreclosures filed on primary residences rose to 503 from 472 in October countywide, according to statistics compiled by the Southwest Florida Real Estate Investors Association."

"'That's scary,' said Ray Kest, an economics professor at Hodges University in Fort Myers. 'It does not bode well for any type of turnaround in the economy. If homesteaders can't make their mortgage, there might be an out-migration by some of these people. When people lose their jobs, they hang on, hang on, try to find another job. When they lose their house, they move.'"

"As for the primary residences going into foreclosure, mortgage broker Jeff Tumbarello said, 'A lot are refis (refinancing) who took the cash out of the house.'"

"Hugh Bromma, CEO of The Entrust Group, said there are sometimes strategies for people to keep their houses even when they're in desperate financial situations. 'What you can do is indeed borrow up to $50,000 from a 401(K) if your plan allows it, and you can use that for any purpose,' Bromma said, and pending federal legislation would increase that to $100,000."

"The money has to be paid back to the 401(K) over a five-year period, Bromma said, so it's a stopgap measure. 'But at least it'll give me some time to decide what to do.'"

"As the real estate market tanks, Bromma said the tactic is being used more and more by his clients. Entrust, which has an office in Fort Myers, provides services for self-directed retirement plans. 'I've been through three of these (downturns) and this is by far the worst I've seen,' Bromma said. 'Our clients are investors, and they have self-directed IRA's and 4019K)s.'"

"Many, he said, are finding themselves having to ride out a period of reduced property values and relatively low rental rates."

From WFTV 9 in Florida. "Increasing foreclosures are creating eyesores in some upscale Seminole County neighborhoods. Code enforcement said it's seeing more violations at homes in financial trouble. Channel 9 found one property in Longwood that may soon face nearly $14,000 in fines."

"Some neighbors are skeptical that steep fines will make a difference."

"'Code enforcement can fine them all the want. If they're in foreclosure, who's gonna pay the lien? No one, so it's just useless,' said Al Moses, a homeowner."

From 11 Alive in Georgia. "The first Tuesday of every month, foreclosed homes are auctioned off to the highest bidder on the steps of the Fulton County Courthouse. 'I thought there'd be more order, that it would be more civilized. I'm very surprised,' said Gary Branson."

"He said he wanted to come to get a feel for it. What he didn't expect was chaos, confusion, cacophony."

"Trent Gaines is a closing attorney, but one day a month, he is a potential buyer. He does extensive research into the history of the properties and their owners, and that, even then, it can be a crap shoot. 'This was a great job to have in 2001, 2002. There was a ton of equity in every house coming through. Now all the people have refinanced the equity out,' Gaines said."

"Gaines and about 60 others raced around the steps, running up and down, forming tight circles around the half-dozen attorneys reading off the lists of properties up for auction."

"Down on the sidewalk, a dozen protestors carried signs that read 'My Home is Being Sold on the Steps' and 'Stop Foreclosures

The News & Observer from North Carolina. "The Triangle housing market deteriorated further in October as sales of existing homes dropped 26.5 percent. It was the largest monthly decline since the housing slump began last year; it follows a 24 percent drop in September."

"The Triangle's biggest economic engine is likely to be wracked by more major declines, economists said. 'It's definitely going to get worse, compared to a year ago, for several more months,' said Michael Helmar, an economist for Moody's Economy.com. 'The housing market isn't at the bottom yet.'"

"Pending sales dropped 12 percent in October in Wake, Durham, Orange and Johnston compared with a year earlier. The inventory of unsold homes rose 23.4 percent to 13,534, and the number of homes on the market at reduced prices rose 49 percent."

"Total closings, however, fell to 2,088 from 2,842 a year before. The Triangle MLS figures are mostly for existing homes, but some new-home sales are included in the report."

"Lenders have tightened lending rules for nearly all borrowers, said Glen Astolfi, chief operating officer at DNJ Mortgage of Raleigh. 'You can still get a loan, but the bottom line is it's more expensive,' Alstofi said."

"In 2006, almost anyone could get a loan for 100 percent of a home's price. Now lenders require at least a 5 percent down payment and a higher credit score, Astolfi said."

"Ross Rhudy, general manager of one of the Triangle's largest brokerages, said the easy mortgages have sapped demand. 'We spent some demand in advance when ... anybody in the world could get a loan,' Rhudy said." 'Another problem that remains is the difficulty that transplants are having selling their homes in other markets, preventing many from buying in the Triangle."

"Broker Shields Pittman had a sale fall apart two weeks ago over a $500 difference between the seller and buyer. 'The buyer thinks there will be other opportunities at less price,' Pittman said of the North Raleigh home priced at $225,000. 'I think he's mistaken, but people are waiting to see what the market will be.'"

"Dan Tingen is building homes in Raleigh, Cary and Holly Springs. But he's starting to feel like he's in Vegas. With the market for new homes in its steepest decline in years, Tingen is making big bets that he can find buyers for 15 homes he is building."

"'This is high stakes poker,' Tingen said. 'It will keep you awake some nights.'"

"Across the Triangle, hundreds of builders are rolling the dice to decide how many new homes and lots will be needed as a cooling economy and the national housing slump erode demand."

"Builders are walking a fine line between meeting demand and overbuilding in a market that could shrink by the time homes are finished six months or a year from now."

"'It's not like an engine you can just turn off,' said Carl Van Horn, research analyst in Rocky Mount. 'They have to continue building, because there is still demand for housing. People are still moving into this marketplace, and they have to live somewhere.'"

"Developers and builders aren't expected to lose their shirts. If anything, most are taking reduced profits. Big price reductions by large national home builders this fall have jolted sales of excess inventory, too."

"In the 12 months that ended Sept. 30, there were 15,125 new homes sold, and about half were spec homes."

"'The main thing is to be in business when the market turns,' said Tingen, owner of Tingen Construction of Raleigh and past president of the Home Builders of Raleigh-Wake County. 'You can't just quit, you have your staff, your lot commitments, so you operate at lesser margins. Our biggest problem is their inability to sell on the other end. If we could eliminate that, our market would be pretty much normal.'"

"Tom Taylor and (his) wife moved this month from Laguna Beach, Calif., into a $1 million home in Hasentree in North Raleighn. The couple looked at dozens of houses across the Triangle but found that many builders were unwilling to deal." "'Most were not [willing] at all,' Taylor said. 'They had yesterday's price and were proud of their house and are still sitting on it.'"

"The biggest discounts were offered this fall by large national builders to reduce year-end inventory; they control 36 percent of the new-home market. Some discounts were for tens of thousands of dollars, enough to lure buyers such as Rajesh Vallabhaneni, a real estate broker."

"Vallabhaneni looked all summer, then contracted for a $229,000 home only after builder K. Hovnanian offered $28,800 in upgrades in September. 'We'd still be looking,' Vallabhaneni said, 'if we hadn't gotten the upgrades.'"

The Daily News from Tennessee. "The plat has been recorded and the first two builders have signed on. Now the developers of Oakland Cross Creek need the housing market to rebound after a dismal year."

"Oakland Cross Creek, a 129-lot development...in Fayette County was the creation of partners Terry Pagliari, Terry Dan and Billy Perry - and Chuck Schadt. When they launched the development a couple of years ago, none of them imagined they'd be facing a slew of housing woes - from sagging sales to the credit crunch - as they prepare for the first homes to break ground."

"'At the time we started, the market was doing well,' Pagliari said. '(Builders) were pulling probably 50, 60 permits a month in Fayette County, so it looked a little better than what it's looking currently.'"

"But they also think this housing setback is temporary, just a down cycle that could turn around any day now. When it does, they agree that Oakland Cross Creek will be positioned to tap into Fayette County's potential."

"'It's slow everywhere - I don't care if you're in Midtown, Downtown or Fayette County,' Pagliari said. 'But there's a lot of growth in Oakland, and as soon as the market comes back, more growth is going to be there.'"

"'Things are slow, but we're seeing signs of picking up,' Pagliari said. 'We're getting better and better traffic, and we've got some buyers out there if some of the buyers could sell their own houses - some of them are having trouble selling their existing houses.'"