I expect that values will continue to rise in Florida but do investors expect that the extreme price appreciation this last year may flatten over the next few years or given the migrations and low inventory and low rates folks still believe at least average appreciation may be realized ?
Generally speaking, the country is massively underbuilt. We took a massive break from developing new real estate in the wake of the Great Recession. That, combined with migration due to Covid and huge monetary stimulus by the Fed leads me to conclude that asset prices will continue to climb.
However, that does not mean "buy anything you possibly can." The principles of sound real estate investing still apply. Buy for cash flow, use modest leverage, and have adequate reserves!
My concern with Florida would be more related to long-term prospects related to climate change. Insurance companies, in particular, have begun to recognize climate risks in many areas and increase premiums as a result.
All markets cycle. I don't think we have hit the top in SW FL yet. Maybe another 1-2 years but my crystal ball has been acting up.