Throughout the pandemic, we have seen many Americans relocating to larger homes even in other states. In South Florida particularly, we have seen an influx of luxury home buyers looking for more space, a better climate, a lower tax burden, and even freedom. Looking back at 2021, it is safe to say that it was a record year for luxury home sales. Continued strong demand combined with a persistently low inventory has resulted in dramatic price gains in this sector of the market.
Key market observations
- The number of single-family home sales increased by 19%.
- An aggregate sold price growth of 17% compared to 2020.
- Some markets saw inventory levels drop by as much as 55% compared to 2020.
- Resort towns and vacation destination cities were the greatest impacted with inventories the tightest.
Trends for 2022
- Inventory constraints will keep demand high and prevent price decreases.
- Relocation to other markets to enhance lifestyle choices created by the ability to work from home.
- New wealth entering the market as the growth of high-net-worth individuals has increased exponentially over the last two years.
- Inventory levels should increase as more people are ready to move or need to sell to be cash ready for their next purchase.
- Decreasing cases of COVID-19 cases should provide sellers more confidence to list their homes for sale & be open to showings again.
Summary
The pandemic has certainly had some profound impacts on the luxury housing market and the real estate market as a whole. Popular vacation home markets such as South Florida have also seen an increase in these homes translating to more full-time occupancy as well. There is no shortage of reasons why The Sunshine State has become so appealing for many looking to relocate.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!
