The Wall Street Journal has an excellent article on the state of real estate in the especially hot markets in recent years [subscription required].

The article looks at investor speculation in the area, including many who have chopped their expectations dramatically in recent times. Some areas, like Naples, FL, have fallen by 50% year over year.

Other areas to suffer around the country were Sacremento, down about 30% year over year and Phoenix, down about 25%.

This summer may not be so hot in Florida and California!