What we see today in Florida real estate is a market correction. We have experienced over-exuberant expectations in returns that have been fueled by inexperienced investors in the housing segment. This has created challenges in capital markets. As lenders overreact, less money is available for deals and we see that fewer deals happen. During this time, property values may decline while cap rates increase
Because people like to live and play in Florida, the state remains a preferred destination long-term. Even though the Florida real estate market generally trends up, right now we are experiencing a trough in the cycle.
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