A report from Florida Today. "In today's tough housing market, sometimes it takes some creative thinking to sell your house. Scott Bernard is having a picture-coloring contest and giving away his house in Sebastian to the winner -- sort of. Each person who enters the contest pays a $49 entry fee. Bernard needs at least 5,400 people to enter the contest to raise enough money to pay off what he owes on the mortgage."

"'This was the only positive way I could come up with to sell the property,' he said."

"Bernard, like many people who bought homes before the housing market soured, said he could not sell his house for what he owes on it. He bought the 1,500-square-foot, three-bedroom, one-bathroom house in July 2005 for $217,000. But today, the house, built in 1957, has an estimated value of $140,000."

"'I bought it at the peak of the market,' he said."

"He's not the first to try a unique approach to unload property in Florida's struggling housing market. An effort this spring by St. Cloud developer Chris Wardlow to raffle off two houses fizzled with just a few dozen $250 tickets sold, well short of the 5,000 needed for him to recoup his costs and give some money to charity."

"Merritt Island resident Dale Schamp used a buy-one-get-one-free deal earlier this year to try to sell his beach house, offering a second, smaller house on Merritt Island for free. The result: no sale."

"'We had tons of calls and publicity about it, but it was all to no avail. It's just the market,' Becker said. 'Nobody made an offer.'"

The Bradenton Herald from Florida. "Gil Pearce's perfectly groomed Summerfield Glen home is sandwiched between two vacant houses, one with cut screens and a wide open patio door, and the other with a 'For Sale' sign and an unkempt lawn. Pearce's case is not unusual."

"There are 35 homes currently vacant due to foreclosure or other reasons among the 1,800 homes in Summerfield and Riverwalk, said Alan Roth, chairman of the safety awareness committee for the Summerfield/Riverwalk Village Association."

"Roth estimates that at least 60 to 70 homes are vacant because of foreclosures in all of Lakewood Ranch. He thinks that might be conservative. Every Summerfield and Riverwalk neighborhood, including the upscale Ridge, has vacancies, Roth said."

"'There are even foreclosures and empty houses in Country Club,' Roth said. 'Greenbrook probably has more than anyone.'"

The Miami Herald from Florida. "Thanks to the housing slump, professional couple Gladys and Raul Castillo finally found homes they could afford -- new condo units in foreclosure within walking and biking distance of their jobs in Miami's Brickell financial district."

"They also had the credit record to meet lenders' standards. But they couldn't land an actual loan. 'Almost all of them want 20 percent,' said Gladys Castillo, speaking of lenders they had approached. The Castillos had saved only 10 percent, and lenders were loath to get into units in buildings rife with foreclosures."

"So the couple have stopped searching while they save for a bigger down payment."

"'In areas like Brickell or the Biscayne corridor, there is no way to get a loan unless a borrower is willing to put 30 or 40 percent down,' said William Zalaquett, a Realtor who specializes in the area."

"Even wealthy individuals needing financing are having a tough time, said Alex Doce, president of Baron Mortgage, a lender with an office in Miami."

"'Right now, I have a couple of $4 million and $5 million loans, and it's a nightmare to try and finance these people who have high net worth. The few people that were buying these loans, like Indymac, have gone out of business or don't have the capital to lend,' Doce said."

The Atlanta Journal Constitution from Georgia. "Prospective homebuyers are pondering whether prices have hit rock bottom, so the housing industry is trying to create a sense of urgency. How? By touting the new $7,500 refundable tax credit contained in the massive housing-stimulus bill President Bush signed last month. The credit expires July 1."

"Realtors, builders and lenders wearing 'Buy Now!' stickers gathered on the Capitol steps Wednesday at a rally to promote the incentive. Beazer Homes, the beleaguered Atlanta-based homebuilder, held an online seminar last week to do the same thing."

"'You will never see a better opportunity than the opportunity before us right now,' U.S. Sen. Johnny Isakson said, standing before an umbrella-toting crowd."

The Birmingham News from Alabama. "Some Birmingham mortgage professionals say they are experiencing a drop in mortgage applications, reflecting a national trend. Bill May, president of Accent Mortgage, said the number of applicants seeking mortgages from his firm is down significantly from a year ago and that others in the industry are experiencing similar drops. He said national media coverage of the housing market is scaring away potential homebuyers."

"In addition, May blames fallout from recently approved federal legislation that prohibits loan down-payment assistance from nonprofits."

"'The housing industry is really struggling right now,' said May, past president of Alabama Mortgage Brokers Association. 'Realtors are having problems selling houses. Many builders are sweating every day because properties aren't moving.'"

"Grayson Glaze, executive director of Alabama Center for Real Estate, said there is a reason for the decline - bad economic news in the housing sector. 'The last two months of weekly mortgage application activity have revealed a mixed bag but with a common denominator - a significant decline in volume when compared to its prior year,' he said."

The Tuscaloosa News from Alabama. "A Mississippi-based developer is going ahead with plans to build an estimated $110 million hotel and condo tower next to Bryant-Denny Stadium, leaving land owned by the University of Alabama out of the project - for now."

"Spectrum Capital wants to sell the 250 rooms, ranging from 450 square feet to 1,100 square feet, with a concept similar to beach condo hotels. With prices starting near $200,000, owners don't have to put their rooms in the hotel rotation, but the practice will be encouraged, according to documents."

"Spectrum also plans to build a tower with 65 condominium units, with an average size of more than 1,500 square feet. Starting at $500,000, Spectrum plans to market these primarily to baby boomers looking for a second home, likely Crimson Tide fans or those with connections to the university, according to planning commission documents."

"UA spokeswoman Cathy Andreen didn't offer any new details on when UA would award the development of its lot, and city planning director Bill Snowden said he has not heard either. 'It's got to be developed,' he said. 'It's just too valuable to sit there as a parking lot.'"

The Daily Journal from Mississippi. "At a recent open house, a band played while attendees snacked on pork tenderloin, all the while admiring the views inside and out of the 8,000-square-foot home. Custom built four years ago, the Louisiana plantation-style home is for sale for almost $2 million, an unheard-of asking price for a home in Northeast Mississippi just a few years ago."

"The home is among 52 area homes on the Multiple Listing Service for sale for $500,000 or more."

"Area real estate agents say while there's a growing list of sellers of these homes, more buyers are entering the market, too, despite some of the woes in the housing industry going on in other parts of the country."

"'If you look at the last two years, it's really not much different now,' said Jason Warren of Prudential Magnolia Realty in Tupelo. 'We're in a market that's continued to grow.'"

"Brenda Spencer of Tommy Morgan Coldwell Banker is hoping to sell the home that's in The Summit. Spencer, who has been in the real estate business for 31 years, said the first $1 million home to be listed for sale in Tupelo happened about three years ago."

"'It's not that there weren't any homes that weren't worth that much, because there were,' she said. 'It's just that people had built them. Appraisers really didn't have anything to compare them to; nothing had ever sold for that much.'"

"But as some of these homes came on the market, a benchmark was established, and several $1 million homes have been sold since then."

And several are on the market today. Of the 52 homes selling for $500,000 or more, seven are listed for at least $1 million. Topping the list is a 12,380-square-foot, five bedroom, 6 1/2 bath mansion sitting on 40 acres in Booneville. The selling price: $3.9 million."

The Tri-Parish Times from Lousiana. "Luxury home market sales in Terrebonne and Lafourche have taken a slight decline over the past year, according to developers and realtors. However, luxury home prices have not fallen locally as they have in most American cities."

"'Anything under $200,000 is doing well right now,' said V.J. Caro of V.J. Caro Jr. Building Contractors Inc. "Anything above has slowed down, but the prices haven't dropped.'"

"The beginning cost for what defines a 'luxury' home depends on who one asks. Some start at $300,000, others say $500,000. Either way, the definition of luxury hime has changed significantly."

"'Higher-end today is no longer $250,000. Especially in this market, $350,000 has become the new starter home,' said Mona Martin Christen, owner/broker of Mona & Company, Inc."

"Industry professionals have various opinions as to why the market has soften recently. One major concern is the coverage of the national housing market slowdown effecting how people view the local market."

"'People have gotten nervous about buying because of the hype on TV,' said Christen. 'Louisiana is not suffering nearly as much the national media is reporting. We have barely been affected. We haven't had nearly the number of foreclosures or loan failures. It's unreal how Louisiana has floated to the top this time around.'"

"Another problem is the crackdown on certain lending practices has made mortage companies more cautious about whom they lend money."

"'For a long while many of the mortgage companies were doing 100 percent financing with no money down. That's all gone now,' Randolph A. Bazet, III co-owner of Bazet Reality & Associates, Inc. 'Unless you have money to put down or have a substantial credit score, it's going to be difficult to finance the purchase of a higher-end home.'"

"'Zero-down lending created an artificial market called the mid-market,' said Joey Esso, co-owner of The Wood Doctor. 'Ten years ago, once you got past $300,000, that was a custom unit. Now that's moved up to $500,000 and a $200,000 to $400,000 unit became a spec house. That was artificial created by a miracle of financing.'"

"As long as the local economy does well, contractors and realtors are confident the luxury home market will stay strong. They see the recent sales decline as a minor hiccup and not a sign of trouble ahead.'

"'It's just a little slow down in sales. They're not popping like they use to,' Christen said. 'I remain optimistic though.'"