CNNMoney reported yesterday that home prices nationwide dropped 7.7 percent in the first quarter of 2008. That's the largest decline since 1982.

So what about the Southern region? This region has had hot market activity in certain areas -- like Austin and Houston, Texas.

But it did have some trouble spots -- with many markets in Florida that boomed in 2005 -- seeing sharp declines and frustrated sellers.

But most of the reports we see from our Florida experts indicate that the market may be turning around. From Realtor Peter King in the Perdido Key area -- he reports that he knows that they will always have decent sales on Perdido in May and September and that the shear volume of visitors will translate into good sales volume during the summer.

He also points out that they had a good first quarter. As momentum builds, he says, over that period with fear of loss (due to lower inventory) and concern that price points are headed higher (and by the law of supply and demand they are) the market success feeds upon itself resulting in more sales and higher price points. That's the definition of a good or improving market.

Also going against the grain of national reports -- is Austin, Texas. Realtors Rob & Carolyn Abbott report that the average sales prices ROSE nearly 2 percent in the last month -- and is up by 12.55 percent from last year, brining the average price in the city of Austin to $266,807.

They report: "Austin continues to hold promise as a great place to live and especially, invest in! We see the buyers market we've entered into -- which at this moment we see as part of a NORMAL market environment, unlike the more publicized national markets in the East and West with the dramatic ups and downs we read about in the news."

Published: May 14, 2008

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