The Florida housing market was the first to go into a recession, but lower home prices have produced more sales in Florida real estate markets the last couple of months, showing many markets are improving.

Record foreclosures and lower prices along with 900 new residents moving into the Sunshine State each day have produced a new type of market. The bubble burst long ago in Florida. Prices have dropped by as much as half from their record peak and ready buyers who are willing to be patient are negotiating some of the best deals in years.

The housing bust started earlier in Florida than any other state, so it stands to reason that Florida will pull out sooner than most others. Hurricanes, higher interest rates and the credit crunch produced a mammoth storm to quell its markets. An increasing inventory of property, including many new homes and condos are attracting buyers.

In Miami as Housing Predictor forecast last year, the market is falling and has become the epicenter of America’s housing crisis. Values have fallen by as much as 40% already and more deflation is in store for the market.

Thousands of new condominiums, which were under contract to buyers have been stalled or had construction cancelled. Untold thousands of would-be buyers left deposits of 20% and higher with developers instead of closing on their units. Miami has turned into a multi-billion dollar bust.

Developers are offering incentives to perspective condo buyers, but buyers, uncertain or nervous about the economy are rare in Miami these days. Housing Predictor forecasts the market will worsen through 2008 deflating an additional 18.1% on average in value.

In Palm Beach, which is one of Florida’s most affluent areas the market has also been hit hard. Home sales have slowed for more than two years and prices have dropped. Palm Beach will weather another tough year in 2008, projected to deflate 12.4%.

In Naples, which has long been a destination for the rich, the market has nearly stalled with few buyers in the market place. Prices have been slashed on homes being marketed and real estate agents are telling home owners that if they can afford to weather the mortgage storm to stay in their homes for now. Naples will see additional depreciation forecast at 13.9% in 2008.

In Fort Lauderdale new condos and homes have been auctioned off for less than what builders claim it cost them to build in the first place. The market is a faint image of what it was in the real estate boom, which saw prices double and triple. Fort Lauderdale will see another tough year on the way to decreasing values of 10.1% on average.

Up the coast in Jacksonville, which has turned into the state’s largest metropolitan area home prices aren’t as high. Jacksonville has a strong job market from many new businesses that have moved to the area. However, the market is still swelling with an over-load of inventory and will see a slow year again in housing sales.

Jacksonville is forecast by Housing Predictor to drop another 7.8% in 2008 before the market begins a recovery. Foreclosures are on the rise in Jacksonville.

In Tampa, which is one of the state’s largest metropolitan areas the market is also slow and prices continue to drop. Foreclosures are abundant and the inventory of homes on the market are on just about every street. The mortgage melt down has dealt a severe blow to the market, which has just begun to trigger what will be a major buyer’s bargain market.

However, how soon the new buyers market will develop with great velocity is difficult to tell. Tampa will see another year of declining home sales and falling prices, forecast at 7.1% less on average.

The city that makes Mickey Mouse’s east coast home in Orlando has seen record foreclosures as a direct result of fall out from the mortgage mess. Prices have been falling in Orlando for almost two years and it isn’t over yet. Orlando is forecast by Housing Predictor to deflate 8.5% in 2008.

In northern Florida, Tallahassee is the state capitol and a major college town. The housing market was hit by the mortgage melt down much later and has not yet begun to adjust to conditions. Prices are plummeting and will fall a forecast 7.0% in 2008.

In the Florida panhandle, where the white sandy beaches attract tourists in Panama City Beach, renown as a college spring break party scene prices are deflating. Panama City Beach will average losses in home values of another 7.6% in 2008.