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"We're not out of the woods yet," said Brad Hunter, who directs Metrostudy's market research in Southwest Florida. "We still have some foreclosures that will be added to the market next year. It's a mixed bag but we're making some progress."

In the third quarter of 2007, there were 907 move-ins to new homes compared with 357 starts. Collier County had 505 move-ins with 389 starts.

"The encouraging news is that combined quarterly new home starts in Collier and Lee counties are down 66 percent compared to last year," Hunter said. "Although the inventory of finished vacant units remains high, the number of homes under construction has dwindled, and move-ins have been outpacing starts almost two to one for the last three quarters."

But the report also notes in the year ending in September, unemployment rose to 5.3 percent from 3.8 percent in Collier and to 5.2 percent in Lee from 3.1 percent."

This news is telling us that there are buyers who buy and the inventory of unsold homes may come down to manageable levels over the next few years.

There is no magic to this as the unsold new home market is currently in process of reducing inventory.  As that inventory dries up there will be demand for some of the excess of newer properties in private or bank hands.

Then some of the older properties will see more interest. This whole process is just beginning and will likely take several years in this area given the huge overbuilt supply.  Attractive island properties are still in demand and the market there will improve along with the the area over time.  

Meanwhile this market is the best I have seen for Buyers.  With the Holidays upon us a gift of real estate could be the most giving gift you could give this year!!