The Miami real estate market does not seem to have taken a break from the holiday season and remains heated. Usually, at this time of the year there is a drop in the number of transactions, due to the celebrations. This year was different! With a large movement of people coming from other states to Florida, new buyers know that competition is fierce and real estate inventory is decreasing. The prospects are that demand will grow even more in 2021. It will become increasingly difficult to find the ideal property! If you are thinking of moving, now is not the time to pause searching.
Florida receives approximately 1000 new residents every day. The Florida housing market has significantly benefited from the pandemic, with a flood of high-net-worth buyers from congested metro areas searching for new large homes in suburban neighborhoods such as Orlando or cities nearby Miami. Most of these new buyers are aiming for single-family homes, a segment that is facing very low inventory, causing new buyers to compete among themselves and making it tougher to find the ideal home. With low inventory for houses, people are beginning to search for luxury condos in Miami, another interesting segment that is offering nice opportunities with very attractive prices.
Inventory for condos in Miami is still high and prices are down, but not for a long time. Buyers are very aware of that and they didn’t pause their search during end-of-year celebrations. Things are going to be very competitive in 2021.
Tampa, Miami and cities nearby Orlando experienced an amazing influx of out-of-town homebuyers in October and November. On the other side, New York, San Francisco and Los Angeles are facing a huge outflow of residents.
People chose Florida not only because of the good weather year-round and the nice beaches. Florida Real Estate still offers affordable houses and condos. For the price of a small apartment in one of the five boroughs in New York you may have a large single-family luxury home in a privileged suburban location just minutes away from some of the Florida’s best cities, such as Orlando, Miami or Fort Lauderdale. Orlando homes for sale have never been more attractive and some cities nearby Miami, such as Weston, are good options as well.
Another great advantage of the Sunshine State is that there is no Income State tax.
Before 2018, residents in New York and other high-tax states were able to deduct from their federal income-tax their state and local tax (SALT). In 2018, President Donald Trump passed the Tax Cuts and Jobs Act, which restricts the deduction at a maximum of $10 k. For a regular American that may not make a huge difference, but for high-net-worth individuals, it is one more great reason to move to a state where there is no state income tax. Why not the Sunshine State?
Not only individual homeowners are living the northern states, but large companies are doing so. Goldman Sachs was the last news in regard to that subject.
Some of theses high-net individuals where on the fence to move before the pandemic. With the success of remote work they just precipitated the decision.
Imagine all these people and executives in search of new homes. It is not difficult to imagine what will happen with the Florida Real Estate market. Inventories are going down for most of the Real Estate segments.