Pending home sales will be subdued in the short-term as subprime mortgage problems continue to worry home buyers. August’s Pending Home Sales Index fell 6.5 percent to a reading of 85.5, down from 91.4 in July and 21.5 percent below the August 2006 index of 108.9.

The price of a home in Florida rose 84 percent during the housing boom, but wages have not kept pace. As a result, Florida workers in key occupations can no longer afford to buy the sort of house they would once have expected to.

Florida’s Legislature has approved the largest property tax cuts in state history following hurricane damage in recent years. The property tax relief and reform package will cut property taxes in Florida by almost $32 billion dollars over the next five years.

The American housing market remained in the doldrums last month with house sales at their lowest number for four years. Sales fell 0.3 percent to an annualized 5.99 million units in May, the lowest figure since June 2003. There was also bad news from Lennar, America’s biggest house builder, which announced a $244.2 million loss for the second quarter of 2007. Lennar’s average sales price fell by 7.5 per cent to $298,000.