In the affluent waterfront community of Clearwater's Island Estates, about 500 houses and 2,000 condos sticks out as one of the most depreciated neighborhoods in the Tampa Bay region.

Prices have wound down to more than 45 percent since 2006, nearly double the decline of the Tampa Bay area market in the same period.

Sale prices on the island did average 1.25-million two years ago. Among the homes under contract this month, the average price is $670,000.