I follow a segment of the Florida market, and have watched values drop 20% from the height in 2005.  The property that I own was purchased in 2001, and even with the decline, has increased in value an average of 10% per year- so still a good investment. Plus, the intangible benefit of personal use.
We have experienced a similar trend at the Jersey Shore. The peak of our market was late 2004 through 2005. Values have dropped an average of 20% from the peak- with exceptions for unique locations. New construction remains the most popular real estate in our market, and has maintained a stronger position- down just 10%.
Future? I am confident in my Florida location because it’s located in a “name brand” community. I feel the same about my year round home here on the island. Both are popular areas and will continue to attract interested buyers who want to own in beautiful locations!
             
East Coast vs. West Coast
Just returned from a week’s vacation in the San Diego area. We are so fortunate to live by the beach, and naturally make comparisons as we travel to other coastal communities. Southern California wins on the weather- low humidity and comfortable, sunny days almost year round.Â
But as I looked up from the rocky beach to the homes hanging on the edge of the cliffs- with obvious erosion below- I thought about the successful efforts by Avalon and Stone Harbor to maintain the environment while respecting property rights. The controversy about the construction in the dunes seems minor when compared with the development issues on the west coast.Â