The past several years have brought upon significant home price appreciation throughout the country. In particular, The Sunshine State has seen a record number of Americans relocating here from other states. In fact, it is not just families that are relocating to Florida. We are also seeing many businesses moving their headquarters south. With housing inventory already tight and prices steadily climbing, this influx of people is putting considerable pressure on the market.
Are the natives getting restless?
Although the additional migration into Florida is resulting in a booming economy, it is also presenting challenges for native Floridians looking to buy a home. Mphasis Digital Risk, a tech company for residential real estate lending, recently conducted a survey of Floridian home buyers. Interestingly, 72% of those polled believe that too many people have moved in from out of state. It should be noted that over 1,000 Florida homeowners were surveyed between Feb. 6 and Feb. 7 on their opinions on out-of-state buyers moving to the area, whether they would consider moving to another state or different part of Florida and if they had been asked to sell their home.
When asked if the influx of out-of-state buyers changed how they felt about their state, 60% of Floridians had no change while 40% admitted their feelings were changing. Unfortunately, the added pricing pressure resulted in 51% of those surveyed to admit that they were contemplating moving out of the state to a more affordable part of the country. Meanwhile, 67% of those surveyed were thinking about moving to a less expensive part of the state.
The South Florida market
The South Florida market has seen dramatic home price growth. As for residents of the tri-county area, 10% of those surveyed in Miami-Dade and Broward counties were considering a move to a different part of the state. As for Palm Beach County, 5% expressed an interest in moving to another less expensive part of the state.
Home prices throughout South Florida have continued their upward trend year-over-year through February:
- Miami-Dade County: the median sale price of a home jumped 19% to $536,000.
- Palm Beach County: the median sale price of a home jumped 19% to $535,000.
- Broward County: the median sale price of a home jumped 19% to $519,000.
Summary
Weather, family, amenities, and taxes are the primary reasons why many out-of-state buyers are moving to Florida. Since these buyers are typically relocating from more expensive markets, they are able to drive up home prices throughout Florida while still being able to afford them. Unfortunately for native Floridians, they are being priced out. Oftentimes, these Floridian buyers are competing with cash buyers in bidding wars and therefore do not have a high success rate of winning the bid.
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!
