During the COVID-19 Pandemic, the rate of people moving to South Florida has increased. This increase has caused prices to rise and changed the dynamic of the market. Because housing in northern states is often more expensive than South Florida, many of these buyers are offering cash to purchase homes. Given the challenges of the current mortgage market, sellers are thrilled to take cash offers, making it difficult for locals needing financing to buy homes. The impact of people moving from the northeast to Florida, always part of the market, is now heavily impacting it.
Cash is king, especially in the central Florida real estate market. Night-Pinel was recently featured in the Orlando Business Journal. Learn more about how buyers are using cash offers to snag the interest of sellers and listing agents. https://t.co/16OlXji7Nz pic.twitter.com/PCc7UhToCV— Premier SIR (@PremierSIR) March 23, 2021
Is this Normal Snowbird Behavior?
No, it’s many people choosing to relocate permanently. As the COVID-19 lockdowns devastated the economies of other states, many are realizing that they are no longer need to live in their smaller, cramped housing, and choosing to move move from the northeast to Florida. Bidding wars are becoming common, with 56% of Redfin home offers having competing bids, in the Miami area it has grown to 43.7%.
Homebuyers face stiff competition in South Florida as northerners arrive — with cash https://t.co/rhed6jpkXC— FAU College of Business (@faubusiness) March 2, 2021
For the seller, “it’s a no-brainer — you go with the cash deal,” said Ken Johnson, @FAUHousingEcon, a real estate economist at @faubusinss.#FAUBusinessFinance
Are these Permanent moves to Florida?
Only time will tell. The COVID-19 restrictions are already easing up north, which may reduce the urgency of moving. Many others are simply making a temporary move and will return later. Others may decide to take advantage of our better weather and improving business climate.
Is This Changing our Lifestyle?
Apparently they are bringing their previous behaviors, already having impacts on the local social scene. Restaurant reservations, never as important in South Florida as elsewhere are now getting flooded with reservation sniping bots. On the other hand, with hundreds of thousands of Floridians working in construction, real estate, and tourism, it’s hard to be too upset if the downside of people moving from the northeast to Florida is we have to make reservations at restaurants.
While tech nerds battling over dinner reservations doesn’t seem like the most critical problem facing Floridians, it certainly introduces a new set of behaviors for the Miami Lifestyle. If you are expecting the lower tax rates immediately, do your paperwork properly, here are some important things you need to know before moving to Florida.
If you are moving from the northeast to Florida plan to relocate your business’s tax domicile as well, you should talk to Bette about becoming a Florida resident, making sure you get your paperwork in order.