The Florida real estate market is currently one of the more challenged areas of the nation. Why this happened is largely because Florida is so appealing that many investors and people anticipating their retirements in a few years bought homes pre-construction homes. For about a decade, people were making money flipping Florida real estate. Many areas, including Vero Beach experienced double digit appreciation of "value" for many years. Then, with the credit crisis and an overly plentiful supply of available homes, the prices began to fall and have not yet stopped falling.
Most demographers were projecting a mid 2009 recovery for Florida but the national financial crisis may complicate the recovery if credit is too tight and too many people cannot borrow money or are wary of borrowing money. Barron's Magazine featured a scholarly discussion of the real estate market last month that I would advise you to read. We are still hopeful for a 2009 stabilization for home sale prices unless the national situation is unresolved or packs a bigger impact than could support a recovery.