Median home price exploded 75% between 2020 and 2022. Prices have declined about 20% since 2023 and everyone is calling the thing a crash. IMO, until prices retrace most of that 75%, it's a correction. Of course, it feels like a crash if you bought at peak and your insurance has tripled if you can get it at all. Excerpts from the article below:

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Florida’s Cape Coral is currently sitting on the verge of one of the worst housing markets in all of America, and experts believe that the situation is likely to escalate further soon. This situation, caused by a sharp decline in home prices, has created turmoil in the real estate industry, with many experts calling it a precursor to the 2008 US financial crisis.

However, agents who spoke with HousingWire believe that the southwest Florida city is experiencing a natural market correction, and it cannot be called a collapse.

While the 2008 financial crisis occurred due to subprime mortgages, speculative buying, and a lack of oversight on the mortgage market, the situation in the Cape Coral housing market has been triggered mainly by high mortgage rates, rising inventory, and growing economic uncertainty at the national level.

The housing market in Cape Coral exploded during the COVID-19 pandemic, which began in 2020. This was the time when new people flocked to the city due to it being a comparatively affordable town in Florida. The homes that were up for sale were bought quickly, which drove up prices. According to Redfin, the median sale price of a home in the city rose from $239,020 to $436,475 between May 2020 and May 2022.

The median home sale price in the Cape Coral-Fort Myers metro area jumped nearly 75%, peaking at $441,000 during these two years. Following this surge, the area became one of the fastest appreciating housing markets in the country, which meant that a pullback was not only on the cards but also kind of inevitable.....

Ultimately, long term price appreciation reverts to normal rates of returns. Yep, I would agree we've got aways to go. At a minimum, post covid gains will be given back but just like things overshot on the upside, it's likely going to be the same on the downside.

I am a firm believer that all debt isn't bad.

There is good debt as well, and if used smart it is a wonderful thing.

That being said it reminds me of 08 when everybody was getting a house, even tho they didn't have any right to be doing so.

If you buy above your means you should be walking on eggshells until you can refinance or sell off.