TAMPA - Home sellers in the Tampa Bay area appear be coming around to the idea that striking a deal in this sluggish market means lowering prices. But buyers appear to be holding out.

September's sales figures for existing homes in the Bay area, released Wednesday by the Florida Association of Realtors, show falling prices - and a big slide in sales.

The median sales price of existing, single-family homes in the Tampa-St. Petersburg-Clearwater area in September fell 10 percent to $200,700 compared with the same month last year, according to the Florida Association of Realtors.

The price drop compared with August was even more dramatic: down nearly $14,000 or 6.3 percent.

Meanwhile, the number of homes sold plummeted 40 percent in September to 1,691, compared with the same month last year when 2,803 were sold.

That 40 percent sales decline was more than double the national figure for September, a 19 percent slide.

'Halloween came a little early for the Florida housing market,' said Mike Larson, a real estate analyst for Weiss Research, based in Jupiter. 'These numbers are scary.'

Economists had predicted the housing market would continue sliding, but many were surprised that sales slowed so dramatically in September.

Even so, the market will likely get worse before it will get better, experts predict. They recommend sellers drop prices and put homes on the market only if they need to sell now.

Because the 10 percent price slide didn't boost the market, sellers need to drop prices further, Larson said. 'I still don't think we'll see a real rebound until late 2008 or even 2009.'

Condo sales fared a bit better than single-family homes. Sales fell to 411 in September, down 29 percent from the same month last year, but prices edged up 3 percent to a median of $159,000. The median is the point at which half the homes sold for more and half for less.

Statewide, there was a 38 percent drop in sales for existing homes and a 9 percent drop in prices, compared with September 2006. The median sales price was $221,200 in Florida.

The condo market continued to slow statewide. Sales fell 37 percent and prices slid 4 percent to a median of $194,200.

The National Association of Realtors said Wednesday the sales decline in September marked the seventh straight monthly decline.

The national median price fell to $211,700 in September, down by 4.2 percent from a year ago. It was the biggest price drop since last October and marked the 13th time in the past 14 months that the year-over-year sales price has decreased.

Many economists said the problems in housing could last for another year, given record-high levels of unsold new and existing homes.

'The housing market is unraveling,' said Mark Zandi, chief economist at Moody's Economy.com. 'We are in a steep downturn, and the prospects are that it is going to get worse before it gets better.'

Local real estate agents have been trying to persuade clients to price homes realistically.

Nancy Otten, an agent with Keller Williams in Tampa, said sellers are getting the message and buyers are getting more home for their money.

'You can put any kind of offer out there and see what sticks,' Otten said. 'There are phenomenal deals out there.'

Information from The Associated Press was used in this report. Reporter Shannon Behnken can be reached at (813) 259-7804 or sbehnken@tampatrib.com.