Tampa Bay real estate market is slumping right along with stocks

TAMPA - The economic crisis in confidence is worldwide but ultimately, all economies are local.

In the Tampa Bay Area, real estate is a ma  jor driver of wealth and spending. Neither is increasing.

Peter Murphy of Home Encounter is tracking what looks like a double dip in real estate.

"We were seeing really positive increases in price every month. But from June to July, that increase leveled off and essentially erased" .

Murphy has also seen the number of sales fall in sync with the stock market and the rise in pessimism over the future.

And Murphy says that pessimism is contagious and self fulfilling.

"An individual may be employed, but not feel secure about their job but then they start telling their neighbors that and before you know it we have a talking effect and everyone starts pulling back" said Murphy.

Still, many economists put the odds of a double dip recession in the U.S. at only one in three. Which means we'll probably muddle along without getting much worse.

That means the beat up values of stocks and homes represent a bargain- a bargain that most people will not take advantage of.

"They're choosing to postpone that decision and wait till the market recovers. And when the market recovers, they're going to pay a more for real estate, so it doesn't make a ton of sense" said Murphy.