Naples housing market has "totally collapsed"

http://www.realestatejournal.com/buysell/markettrends/20060328-fletcher.html
But there are clear signs that the tide is turning in Naples. Inventory levels now are four times as high as they were a year ago, local real-estate agents say, largely because nervous investors are trying to cash out their gains before rising mortgage interest rates topple the market. "Big price reduction" ads are starting to pop up in the thick weekly real-estate sections of the Naples Daily News. Worse, at the end of 2005 Naples was 96.3% overvalued -- based on historical norms for home prices, household income, population density and other factors -- according to a quarterly analysis of 299 housing markets by Boston-based research company Global Insight Inc. and Cleveland financial holding company National City Corp. That made it the most overvalued housing market in the country.

http://money.cnn.com/2006/03/13/real_estate/overvalued_housing_markets/index.htm
California and Florida accounted for 18 of the 20 most overvalued markets, with Naples, Fla. leading the way. A median home in Naples now costs $367,100, according to the Office of Federal Housing Enterprise Oversight (OFHEO), nearly double what the study's authors estimate it should.

http://www.naplesnews.com/news/2006/apr/18/mccabe_luxury_project_hold/?business
"In this coming year, we will see further announcements or further evidence of projects not going forward," McIntosh said. "Some people are not going to make a big announcement. They are just going to quietly crawl away with their tail between their legs."He expects to see projects fail and be taken over by their lenders or investors."Heads will roll," McIntosh said.