Florida’s Real Estate Prices Hit A Record High

The pandemic set the Florida real estate market on fire. Its warm climate and beaches are a magnet for many to live and work with an enviable view. Real estate investment in Florida, United States, is a booming activity and is presented as the most attractive and safest opportunity in the eyes of investors and buyers.

But what’s with Florida’s real estate prices hitting a record high?

Florida has been one of the favorite havens during the pandemic. Hottest cities like Lakeland and Tampa bloated a whopping 40 percent above significant pricing since December 2021.

To better understand this real estate phenomenon that began at the beginning of the pandemic and promises to continue booming during 2022, we consulted Andrew Saltman, Managing Partner to 369 Financial LLC., with a holistic experience in the real estate market in the region.

How does 2022 sound for the real estate market in Miami and South Florida?

Miami managed to become one of the most bankable cities within the State of Florida and also within the country. The permanent growth and the possibilities of progress it offers its residents have no limits.

Nothing and no one stops Miami.

That is why most real estate specialists agree that this year will be hectic for the real estate sector. However, the delay in the wave of new construction in South Florida will mean that in the next 3-4 years, we will still be short of inventory, which will inevitably drive prices higher in South Florida.

What other factor could influence the surge in properties to costs during this year?

In November 2021, we had a phenomenon that we had never experienced: the so-called ‘great layoff.’ About 4.5 million people quit their jobs. This happened because many people were looking for a better salary and working conditions. Employers were desperately looking for labor. This situation caused wages to rise and, consequently, real estate prices upsurge to a record level.

How does the war between Russia and Ukraine affect the current real estate market?

The stability of the US dollar, the rapid economic recovery capacity in the face of the pandemic, technological innovation, and the excellent quality of life are the main reasons many people consider when investing their money.

Here in Florida, we have not yet seen any effect. But investors will likely be interested in investing when the conflict ends in the future.

Which city in Florida competes in the real estate sector?

Amid this context, the city of Miami is transforming at exponential levels, competing with American capitals such as New York or San Francisco, and is the ideal destination for successful businesses.

That’s the way it is. Miami ranks among the top five fastest-growing economic markets in the United States. In addition, this destination attracts many investors from Latin America.

According to Andrew Saltman, Managing Partner to 369 Financial LLC., this frenzy of foreigners to invest in properties in South Florida is due to optimism about the possible end of the pandemic. The relaxation of restrictions worldwide and the great possibilities for growth and quality of life offer this state.

What is the reason for the exponential growth of the real estate market in South Florida?

Many factors affect when it comes to investing your life savings in this destination.

• The most substantial of all is the stability of the US currency.
• Second are the low tax rates (one of the few states that do not pay state taxes).
• Other factors, not minor, are the permanent growth and development of the city, which provide a better valuation of properties and returns for investors.
• If we talk about lifestyle, there is no doubt South Florida is the ideal place to live since they have an excellent climate throughout the year and the routine of work and rest are absolutely compatible in this place.
• In addition, we live in constant technological growth, the development of spaces linked to art is encouraged, and we have numerous entertainment venues for people of all ages.

If we add to the above the multiplicity of cultures in this place, Saltman thinks we have achieved the perfect combo by choosing this destination to disembark as an investor during 2022.

How was the real estate market at the beginning of the pandemic, and how is it now?

At the beginning of 2020, when the statistics of the states with the highest internal migration 2020 came out, Florida was the third state with the highest migration. Given this scenario, the State of Florida would take the lead.

In this context, the three states with the highest migration within the United States were: Florida (+220,890), Texas (+170,307), and Arizona (+93,026).

As a counterpart to these positive numbers is the three states where there was an external migration of its inhabitants: California (-367,299), New York (-352,185), and Illinois (-122,460).

What will happen to foreign investors this year?

Foreign investors were the main ingredient for Florida prices to rise in 2021.

If we talk about figures, Argentines bought properties for US$900 million and placed behind Canada, where buyers shelled out $1.8 billion. Other countries that were not far behind in the race to acquire properties were Colombia ($800 million), Brazil ($700 million), and Venezuela ($400 million).

Was there any data to highlight foreign investments over local ones?

Nearly 66% of purchases made by foreigners in Florida were in cash and without a mortgage, a figure higher than the national average (39%).

In addition, most foreigners from Mexico, Brazil, Canada, and Europe buy homes as a first, second, or third residences.

Is there a risk of losing properties for sale?

Because the Miami and South Florida home sales and prices are on an upward curve, unit inventory is indeed running low.

In any case, Saltman advises investors not to be alarmed and to go ahead with their investment project in this location, as developers have been encouraged to build new properties to balance the market. This destination is highly sought after for living, settling, or vacationing, so new units, buildings, and condominiums are being built.

Conclusion:

According to Andrew Saltman, a renowned real estate specialist in Florida, real estate activity is at the best moment in its history. The real estate market in Florida will continue to boom and hit a record during the year 2022, and Miami will continue to be an unstoppable city, not only in Florida but within the United States.