Migration & opportunity resume
After a sharp slow-down in real estate activity this past spring due to the coronavirus pandemic, home sales have rebounded strongly due to pent-up demand, with South Florida realtors reporting particular interest from folks up north wanting to move to the Sunshine State.
Home sales records are being set all over the place. Mike Pappas, president of Keyes Real Estate in Miami, told Bloomberg News that his agents wrote more sales contracts in June than at any time in their firm’s 94-year history.
Across the Everglades in Ave Maria, Florida, the master-planned community in eastern Collier County, they’ve already broken a new home sales record for the year. They’ve sold 350 homes so far, the most since the development opened in 2006. “The market is seeing a significant lifestyle shift and trend of moving from congested cities to find homes with flexible space that is suitable for home offices or gyms,” according to a release from The Barron Collier Companies, the town’s master developer. Home sales are also booming in the greater Orlando area, which is spilling over for developers and homebuilders, now trying to fill an inventory shortage.
Various Realtors report the mass migration to Florida has resumed (for the past few years, about 950 people have been moving to Florida each day). They’re coming from the big cities such as New York, Chicago, and Boston and from the big tax states of New York, New Jersey, Illinois, and Massachusetts. Their story is that now that they can work remotely from home, they’re reassessing their living situation. They may need more space, want to live in less populated areas outside of urban centers, and are looking to economize.
In other news, Florida remains a popular pick for foreign home buyers. For the 12th consecutive year, Florida remained the top destination for foreign buyers, with a 22% share of all international purchases. California ranked second (15%), followed by Texas (9%), New York (5%), and New Jersey (4%). The latest report by the National Association of Realtors covers the 12-month period ending in March 2020, pre-coronavirus. It notes foreign buyers purchased $74 billion in existing Florida homes, a 5% decrease from the previous yearly report.
Florida’s selling points include its weather, low taxes, relatively low cost of living, and reasonable regulation. Insurance interests know that a strong real estate market translates to more insurance sales, as people seek homeowners, auto, and other coverage. It’s also why we all need to be concerned about the factors behind the rapid rise in homeowners insurance rates for our new neighbors and those who one day hope to make the Sunshine State their new home!
LMA Newsletter of 10-12-20
