From the Wall Street Journal:
The slowdown means more houses are piling up on the market. On Cape Cod, the total number of homes for sale has risen 62% since this time last year; in some places in Southwest Florida, home listings are up as much as 75%, say local real estate boards.
And in many coastal communities the number of single-family home sales is down dramatically from last year. Sales have fallen by nearly half in Sarasota, Fla., one-third on Cape Cod and nearly 15% in Newport Coast, Calif.
From the SHT
Speculation was rampant in '05
A national study of housing sales during 2005 confirmed what many had suspected -- that speculation has been rampant in the booming real estate market.
For example, in Charlotte County, 53 percent of homes bought in 2004 did not carry the state's homestead exemption compared with 29 percent for all homes in the county. In Sarasota County, the respective figures were 44 percent and 27 percent; in Manatee County, 39 percent and 27 percent. [Assumes lack of homestead exemption is a strong indicator that purchase is an investment]
From the latest rankings of over priced housing markets in the U. S. (National City Inc):
Sarasota is 23rd on the list being 59% over valued. (Naples is number 1 at 95% over valued)