Will Today's Losing Politicians Blame the BP Spill, Too?

Florida's string of consecutive monthly gains in home sales was broken in July, as Realtors reported a 14 percent decrease from a year ago.

Meantime, the streak of declining sales prices continued -- down 7 percent to a median of $138,000.

Florida Association of Realtors President Wendell Davis, noting sharp drops in some Panhandle markets, cited the BP oil spill as a retarding factor.

But that didn't deter condominium buyers, as sales rose 11 percent statewide. Of course, condo prices were down again -- off 20 percent.

The homebuyer tax credit expiration added a double dip to what has already been a harrowing ride in the Florida housing market, said Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness.

As we move past this second dip, which is evident in the July data, the continued recovery of the state's housing market will be contingent upon the improvement of the fundamental underpinnings of the housing sector. A healthy housing market depends upon a healthy Florida economy, and in particular an improving labor market, Snaith added.

The news was just as grim nationally. U.S. home sales tumbled 27 percent in July, the worst drop on record. With home sales faltering in other states, which traditionally feed the Florida market, the prospects for a rebound in the Sunshine State recede further into the future.