The Florida real estate boom times of the 1920’s, 1960’s and early 1980’s were characterized by shaky economics. Conversely the 2006 real estate market is supported by sound economic fundamentals. Interest rates are moderate, unemployment is low, the economy is strong and the market is flush with cash looking for placement. Recent real estate appreciation has been driven by user demand; very different forces than the crazy multiple mortgages of the 1920’s, high inflation of the 1960’s or tax advantages and high inflation of the 1980’s. Even the much talked about “flippers” that make market watchers quiver are only a very small component of our market. History is not much help in answering the questions of when will today’s strong market end, or have we reached the top of the market? Never have values increased so dramatically at a time when the driving economic forces were fundamentally sound. One occurrence on which we can rely is cycles. In the past few years, the real estate market has experienced tremendous appreciation, and while I do not forecast a bursting bubble or recession; most market sectors have reached price plateaus and some slowing in activity is expected.