When will prices drop for Florida coastal properties?

Today my wife and I were having a conversation about the prices of beachfront condos in Florida.

We were wondering when and or if the prices for that property type would go down. So I pulled out my iPad and google that exact question. It seems that question is being asked a lot right now. Of the 20 or so first-page search results, many of them were links to Florida news stations reporting on what they believe will happen with the condo market in the near future.

There was no definitive answer to that question.

The next person I saw was a Realtor friend of mine that lives in both Michigan and central Florida.

He thought that with all the new people relocating to Florida, prices in central Florida would not experience a drop any time soon. However, the coastal properties have always had more price volititiy. He has observed that the prices of coastal properties have gone down after hurricane events.

So one thing to consider for prices to drop could be significant weather events.

Predicting when the real estate market will drop is not a science.

Beyond weather events, the key factor that could contribute to a price drop in prices of coastal properties would be a national economic event. The last big reduction in property valuation came during the last economic recession. At that time many of these types of homes were second homes not being used as vacation rentals.

A recession is most likely the event that would cause a drop in Florida coastal properties.