Ever since the early days of the Covid-19 pandemic, South Florida has lured in real estate buyers from densely populated states, such as New York and California. Florida’s lower taxes, favorable weather, and relatively low number of Coronavirus cases have made the Sunshine State a no-brainer when it comes to purchasing real estate. In 2020, these factors kept real estate sales soaring high while other markets nationwide were decreasing. But, is this still the case in Q1 of 2021? To put it short… Yes!
The MIAMI Association of Realtors together with the Multiple Listing Service (MLS) reported a double-digit increase in sales for February 2021. This would make it the sixth consecutive month where sales increase reach double-digit levels. The median list price of properties also saw a 4.9% YoY increase in February 2021, sitting at $398.000.
While the real estate market in cities like Manhattan and San Francisco are still struggling to get back on their feet, predictions for the Florida market forecast non-stopping growth for the foreseeable future.
The question is, why are Florida’s housing sales still booming in 2021? Here are a few important factors:
- Friendly tax environment: Florida is one of the 7 states in the US without personal income tax or property tax. Over the years, the Sunshine State has ranked as the 2nd best state for business, the 3rd state with the best corporate tax environment, the 4th lowest private-sector unionization rate, and has permanently been among the top five states with the best business tax climate.
- Highly Attractive Location: South Florida is known for its beautiful views and year-long favorable weather. The climate in the Sunshine state averages around 81 degrees in the summer and 60 degrees in the winter. Its wonderful beaches and various touristic locations make Florida a highly desirable place to live.
- Strong Real Estate Market: Over the past year, Florida’s median home values increased by almost 8%, and median sales prices for single-family homes have seen YoY growth for 110 consecutive months. And also considering the fact that the dollar volume of single-family homes rose almost 23% in 2020, reaching $125 Billion.
Add all of this to less strict masking requirements, a low number of Covid-19 cases (compared to other US locations), a strong renters market, and an overall better quality of life, and it’s easy to see why out-of-state buyers are going out of their way to get a piece of Florida’s real estate.
We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone at (844) 321-6168 or by email at email@example.com.