Speaking as someone that lives in Palm Beach Florida I can tell you that insurance is VERY expensive. The closer you are to the beach the more you pay. It might be a good bit cheaper that far north but I wouldn't dismiss insurance costs till you have seen some quotes.

Prices have indeed dropped a lot in the last 24 months but the fact a house has gone from 550k to 390k doesn't mean it cannot go to 300k. Don't try to pick the bottom, it is like catching a falling knife. Another consideration is that many people are considering (I spoke to a local realtor yesterday) leaving Florida once they get foreclosed upon as it is so expensive to live in FL.

With all of that said I like it here (I am from the UK) and once you get used to the bugs and humidity it is a lovely place.

Good luck with your search!

Paul