CA mortages
From what I've read, a large fraction of mortgages in CA are now interest-only, often with essentially nothing down. And banks are allowing people to commit over 50% of their income to mortgage payments. I'd assume its a similar situation in Florida. Under those conditions, just the tiniest blip -- an uptick in rates, a decline in prices, people losing jobs, whatever -- is enough to result in massive foreclosures. I sure as hell wouldn't want to be buying in one of those places (my local market is not overvalued by historical standards, at least).