Current market conditions…. In 2007 we saw prices decline here in Ocala. Some areas were harder hit than others. We are seeing prices rolling back to late 2004 and early 2005 levels in many areas.

The Future according to Joe.  I think prices will slide a little more due to the number of vacant investor houses that will have to be sold at a loss or go into foreclosure. There are almost 2,000 investor houses on the Ocala MLS currently. Prices will then remain flat until we absorb the current inventory. There are currently 9500 homes for sale on the MLS and we need to reduce that number below 3,000 given that we are only selling around 250 homes a month. The number per month isn't bad. It's the glut of inventory that's the problem.

Investor advice…I would advise to get out now and avoid foreclosure at any cost. A foreclosure, unlike a bankruptcy stays on your credit forever. Prices will remain flat for the next 3 to 5 years. A long distance rental at half your mortgage is a poor alternative to getting out now.