Are we to a “[tag]housing bubble[/tag]” meltdown? Are we going to see the real estate boom reverse and turn into a real estate bear market anytime soon? Will 2006 see the onset of declining property prices on an intra-regional basis? In short, I think we’ll find the answers to at least the first two of these questions will be answered in the negative. For select regions, however, there will be rather pronounced slowdowns in [tag]construction and housing sales[/tag] that may seem like the bubble has burst, especially when compared with the high growth rates of the previous 3-4 years. We’ll discuss some of these regions here.

[tag]Southeast coastal real estate[/tag] continues to boom and should continue to do so for the rest of this decade. Property markets all along the southern Atlantic coast are gearing up for even more development as the first wave of [tag]Baby Boomer retirees[/tag] hits in 2007. Florida will continue to be a huge beneficiary of the Baby Boomer property bubble as the state is bracing for an even bigger influx of retirees from other states in the next few years. According to Donald Rowe of the [tag]Wall Street Digest[/tag], “The state is reviewing infrastructure plans to accommodate an influx of approximately 600,000 people annually for the next 20 years. [tag]Florida[/tag] has no income tax and no inheritance tax….Because of the low taxes, [tag]sunny beaches[/tag] and more [tag]golf courses[/tag] than any other state, more people move to Florida and bring more of their wealth with them than to any other state.”

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