2021 Mid-Season Review

MID - YEAR 2021 POST-SEASON REVIEW

When the COVID 19 outbreak occurred in early 2020, many experts predicted it would have a devastating impact on the real estate industry. Nothing could be further from the truth as real estate throughout the United States enjoyed unprecedented growth. Nowhere has this been truer than in Florida, which has realized tremendous growth this year when compared to prior years. Many luxury markets have already surpassed last year’s activity, with another 6 months remaining.

KEY FACTORS THAT HAVE LED TO THE UNPRECEDENTED GROWTH THIS YEAR:

• An influx of Retiring Baby Boomers moving to Florida to enjoy retirement.

• Migration of residents that live in densely populated northern cities that have been profoundly impacted by the Pandemic, who have realized that the quality of life should be one of the top considerations as no-one has unlimited time.

• Many high-net-worth individuals deciding to move from high tax Northern States to escape substantial State and Local Tax liabilities that are expected to increase even further in the coming years.

• Florida’s weather and attractive political, tax and business climates are among the best for investment in the country. The state and for the most part, local governments in Florida encourage pro-development and pro-business mindsets while the state’s economy is both vigorous and diversified.

PRESENT MARKET ACTIVITY :

Compared to a year ago, the statistics could not be more dramatic. Sales have already outpaced the last year’s entire sales activity, and prices have also shown impressive growth in nearly every market. The major issue facing Florida’s real estate industry is the availability of inventory. The number of homes available for sale for both Single-Family and Multi-Family homes are at or near record lows.

BUYER DEMAND:

Despite the fact that buyer demand has been impacted by the typical post-season slow-down in activity that results from warm weather returning to Northern areas, there are still many motivated buyers interested in purchasing that have been unable to find a home because of limited inventory.

Buyer demand is expected to remain strong for the remainder of this year and in the coming years despite the waning impact caused by COVID 19 restrictions that are loosening in most other states.

MOST NOTABLY:

• Florida’s attractive weather, favorable business climate, vibrant economy and one of the most attractive tax climates in the nation will continue to drive new residents to Florida.

• Over the next several years, State & Local taxes in high-tax States in the Northeast, Midwest and West Coast are projected to increase even further to cover deficits that have been caused by the Pandemic.

• International Buyers who have been unable to come to Florida because of travel restrictions will return to the market in the future.