A typical household in the past two years saw about a $20,000 gain in equity. That's not an insignificant chunk. Homeowners see that wealth and use it to buy additional goods.
What we had in the past couple of years was an unprecedented frenzy of activity. That's what we're seeing: A decline from a frenzied, unsustainable rate.
Prices have doubled in some Florida markets over the past four or five years, so the 10 percent increase we're forecasting for the state this year might seem kind of small compared to recent trends.