The frigid temperatures in the Northeast are no longer the only driving factor in why entrepreneurs, businesses and snowbirds are eyeing South Florida as a private paradise. Partial lockdowns and restrictions across the U.S. have inspired many to turn their eyes to the Sunshine State and its tropical climate, diverse residents and the lack of state income tax.
Even Big Tech companies are relocating to the area. After numerous high-profile investors made their moves to South Florida public through social media, Miami Mayor Francis Suarez embraced the promotion of the city as an emerging tech hub, spiking even more interest around upcoming opportunities, thus sending the real estate market into a frenzy.
To the surprise of many, the South Florida real estate market has experienced an unexpected boom during the pandemic as people from places like New York and San Francisco looked for a place where masking requirements weren’t as ubiquitous and the weather more pleasant. Many feared this sudden spike of interest was temporary, but the trend of remote work seems to have kept the market alive and well and the trend shows no sign of stopping. In fact, homes priced over $3 million reportedly increased in sales volume over seven straight months, “and 17% of all single-family homes across all price levels closed in January sold above the listed price.”
Agents all over the state are sharing record sales and an inventory that dwindles as fast as it grows — the trend constant in various counties. According to Bloomberg, “While New York’s suburbs, the Hamptons and Aspen all saw sales and prices rise last year, the activity in Florida’s Palm Beach County, from Boca Raton to Jupiter, has been at a breakneck pace.” Buyers have been willing to pay way more than the asking price just to snag their private piece of paradise.
Demand for property throughout South Florida is bound to rise this year as even more Wall Street firms and hedge fund companies migrate to the land of great weather. My city of Miami has seen home prices rise for 109 months straight. From single-family homes to condos, the demand is bound to increase even more. In Broward County alone, “single-family sales dollar volume jumped 35 percent to $645.8 million. Condo sales volume increased 36 percent to $348.1 million.”
What This Means For Homeowners And Buyers
For homeowners looking to cash out, this may be the perfect opportunity to maximize profits. Though the first quarter of 2021 has brought along a slow decline in the market due to lack of inventory, we can expect that the demand for properties of various prices in South Florida is here to stay for quite some time.
For those looking to purchase real estate in Florida, here’s a technique I use with my clients. This strategy can help speed up the process of finding a property in a market where we’ve seen properties listed for as little as three days. I call it the “100, 10, 3, and 1” technique:
• Working with your real estate agent, select the top 100 properties that are within your price range and meet your criteria. Tackle this one as if you were wandering around a field, picking the fruits that simply look appealing.
• Afterward, sit down and narrow your choices down to the top 10 properties and schedule in-person viewings for each one.
• After you’ve seen them, evaluate each carefully and select three of them on which to place offers.
• At the end of the day, purchase the one you like the most.
I expect the demand for properties to remain strong as more people from around the country eye the Sunshine State. Take advantage of the current market while inventory is still around and prices are reasonable. The trend points to an appreciating market where those who jump in now stand to benefit for a long time to come.