Everyone is asking the same question. Things have never been as confusing and upside down in the real estate business as they are now. Buyers are just standing by the sidelines or are unable to get approved for a mortgage. The headlines and news on the sub-prime mess is spreading throughout the real estate industry and infecting many other industries as well. The news is such that buyers, unless they absolutely have to buy a home, are in a "wait and see" attitude. Meanwhile, great deals are happening and buyers are still not budging.

It is absolutely amazing that even with huge price reductions there is no buyer activity whatsoever. Our pending contracts are some of the lowest I can remember in the past twenty years! Buyer inquires and showings by other agents are at such low levels that it seems nothing is going on.

Let me give you an example of how bad things really are. I just received an offer from another agent for a one-acre golf-front lot in Bella Collina for $275,000 which is in pre-foreclosure status. Bella Collina is a very upscale community on the shores of Lake Apopka in Montverde, where the lots in 2005 were selling like hotcakes in a lottery. Now, as fast as the prices were going up, they are coming crashing down, taking tons of people with them into very tough financial positions. In 2005, the lots in Bella Collina were selling at $600,000+ and now they are being sold off for pennies on the dollar in pre-foreclosure. The signs are everywhere of prices going down due to huge competition from builders, foreclosures, short sales and huge resale inventory.

• Some Home Builders Could End Up Bankrupt (click here) and sell homes at bargain prices, according to Business Week. This will drop prices down by 20-30%, according to Forbes Magazine.

   

• Another Florida Home Builder seen Sliding Into Bankruptcy – Click here for the story

Tallahassee: Forecasters now say worst downturn in 40 years has at least another year to go.

Forecasters: State fiscal pain will linger at least another year

"Baker and other economists said that until homeowners dropped expectations that they could sell their homes at the booming prices of just a few years ago, the state's real estate economy would not bounce back."

Here is the full story from the Tampa Herald Tribune - Click here!

General Market Indicators

The average home price in Orange County in October, compared to last year, dropped 4% while sales dropped 56% over the same period last year. In September, sales were down 60% by comparison. In Seminole County, the drop in sales was 58% over the same period. Prices were down by 9%. September showed a 60% decline in resales and a 6% drop in the average home price. Volusia County was leading the pack with an 18% drop in the average home price and a 41% drop in sales compared to the same October month last year. In Lake County, the average price of a home for October was down 12% and sales were down 28%. September numbers show a 17% drop in the average home price and a 36% drop in sales.

New Condo Website, Click here

The area marked in red shows inventory availability of over 12 months.

The area marked in red shows inventory availability of over 12 months.

The area marked in red shows inventory availability of over 12 months.

The area marked in red shows inventory availability of over 12 months.