I agree 100%. The condo glut/bust combined with foreclosures have made the area a great bargain.

PLUS, in many places a "vacation home" that is within reach of most people ($250,000 or less) is nowhere near the action. I just took a random look at Zillow and found a house (what many would call a "beach cabin") just a couple of blocks from the beach:

13900 Bay Ave, Panama City Beach, FL 32413 | Zillow Real Estate

In a few years, people will look at his as the "good old days when you could snap up Bay County property for next to nothing."