The ZS7 prices are unfortunately up because it is a discontinued model. The typical cycle is that the price drops when it is first discontinued and then goes back up when the demand remains but the supply dwindles. If you can do without the ASM modes (aperture priority, shutter priority, and manual), then check out the Nikon S8100 also. It is also a discontinued model but not in low supply/high demand like the ZS7 so the prices have remained lower.
Disclaimer: I take photos of life rather than live to take photos and my opinions of cameras are reflected accordingly.