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!