Then again, the fact that the Florida market is experiencing the yips should not come as a huge surprise. There are always a number of factors for a decrease in the value of properties, and most of these came together in 2005 (although the pressure had been building for the last six to eight years).

Florida had been in the throes of the sort of property boom which had not been seen since the early 1970s, when the first batch of cold retirees from the northeast coast of the US migrated towards the sunny climes of south Florida. An altogether younger exodus from the north has been taking place since the turn of the century, driving property values up the past few years.

But the boom times seem to be over, and a market which had been appreciating almost out of control has taken stock of itself and decided to pay what it considers to be a more realistic price for its properties.

Some of the problems with the market can be traced to the retirement of Alan Greenspan as the chairman of the Federal Reserve. This alone would have triggered a certain amount of caution, so the almost monthly increase in interest rates in the US by Greenspan's successor Ben Bernanke certainly didn't help matters. Still, the market in Florida could be described as slightly above any interest rate rises, thanks to the fact that many people will move south having already made their money. But then add to the mix the fact that 2005 saw more hurricane activity than most Floridian summers see in a decade, and more and more investors may have been encouraged to put their money elsewhere.

"I've been in Florida for 38 years, and I have never seen so many hurricanes and tropical storms as I did last year, " said Marie Kitsberg, an associate with Donning-Frye Realty in south Florida.

Despite the weather, Kitsberg is predicting sunnier times for investors in the sunshine state. "The last six to eight years saw something of a feeding frenzy for property in south Florida, " she said.

"Investors were making incredible returns, and some just bought too many. What we are experiencing now is a levelling off in the market, and nothing is really going down.

The baby boomers are coming to the state, and I feel that we will not have any major downturn. But people tend to forget that property is a long-term investment, and the market here will recover in a year or two."

As an investment, Florida does offer some reasonable returns in terms of rental yields. Anywhere below the frost line (including Miami and Fort Lauderdale on the east coast and Naples and Fort Myers on the west) will have a strong rental market, particularly in front-line beach condominiums. Depending on price, a property which costs under $500,000 (these are still available) should be let year round for $1,500 to $1,800 per month. Or, if it is a well-located, high-end condo in season (December to March), it can be let for up to $4,000 per month.

So where should people buy? "Any metropolitan area should generate good returns, " said Kitsberg. "You could opt for central Florida, and Orlando has a ready-made tourism market. Or, further south, Miami is a big city with a strong rental market. But if people are interested in Florida as a place to stay for a few months of the year, they could look at Naples, Fort Myers and Marco Island. The further north towards Sarasota that people go, the cheaper the properties will be . . . but, in terms of returns, Lee and Collier county [in southwest Florida], while more expensive, have also seen the most activity in recent years."

There are even some emerging markets in the high-end part of the state, including Estero and Bonita Springs. So should Naples or Fort Myers prove too expensive for some investors, it is heartening to know that you can still get a well-built property in south Florida from between $250,000 and $400,000.