How has COVID-19 affected Florida property sales?

How has COVID-19 affected Florida property sales?

The COVID-19 pandemic has upended the daily lives of people across the planet, including the United States. Florida real estate has also been affected by social distancing and quarantine restrictions. But there was no drop in sales. On the contrary, remote work and the desire to live in greater comfort spurred residents of neighboring states to move to the southeast coast.


2020-2022 Florida housing market changes

The results of the first three months after the start of the pandemic in 2020 showed the most striking trends in the US real estate market. In a situation of instability, potential buyers did not risk investing in new housing. For example, in Miami, in the second quarter of 2020, demand for Florida homes fell by almost 50% compared to the same period in 2019. But by the end of 2020, the situation stabilized, and prices rose by 2.1%. People began to understand that in the current situation, comfortable living conditions are one of the priorities for mental health. Due to the increase in the number of transactions, the number of homes for sale has decreased to the lowest level last seen 12 years ago.

In 2021, housing prices continued to rise, while the number of available housing kept declining. In addition, the number of buyers paying for the deal in cash doubled. At the end of the third quarter of 2021, home prices in Florida rose by 17.7% compared to the same period in 2020.

By April 2022, the median unit price in Florida reached $378,000. Property offers went down 2% from 2021 figures, though it's worth looking at data for specific areas of the state. Miami, Orlando and Tampa have leading positions in real estate sales in the state.


Major trends in the Florida commercial real estate market

The sectors of the Florida economy that have been hardest hit by the pandemic have been forced to shut down sales due to restrictions. Losses affected hotel and retail real estate. Office space also remained unclaimed for a long time due to switching to the home office mode. The drop in demand turned out to be short-lived and did not affect the decline in prices. Small businesses are still interested in premises for their activities.

Key trends in Florida's post-pandemic overseas property market

The main vectors for the development of the Florida real estate market in 2020–2022 include:

  • Increased demand for housing in the suburban area. This trend has affected not only Florida, but also other states. Buyers are attracted by the opportunity to lead a comfortable lifestyle, but also by affordable prices. In the suburban area, they are lower than in the city center. For those who work remotely, this is an affordable way to save money.
  • Large apartments and houses are in high demand. The reasons are quite obvious: it is difficult for the whole family live in several rooms without having free space. Lockdown has created a need for spacious premises for work, study, and recreation.
  • Online transactions and virtual viewings of homes have become more commonplace. However, the majority still prefer to visit properties offline and visually evaluate the object of interest.
  • Rental rates for commercial real estate have declined. This is due to fierce competition in the conditions of idle commercial space.
  • The cost of housing has risen, but mortgage rates have fallen. During the period of self-isolation, this has become the most accessible way to support the real estate market.
  • Peak sales have not yet been reached, but demand is already outstripping supply.

In Florida, internal migration also spurred price increases. The lack of attachment to the workplace during the period of remote work has given US residents the opportunity to seek more comfortable living conditions. Florida's infrastructure is perfect for a resort lifestyle. Therefore, not only the prices of housing for sale are increasing, but also rental rates.


Why foreigners and US residents choose Florida

Traditionally, the "sunny state" has attracted retirees who prefer to spend the winter on the warm coast. But with the onset of the epidemic, its social audience has expanded significantly. Buyers and renters of real estate in Florida like the following factors:

  • Significant variation in prices. While in popular Miami the rates are quite high, a little to the north you can buy or rent an apartment much cheaper.
  • Developed infrastructure and ample opportunities for doing business. In Florida, you can not only live comfortably, but also work. The tourism sector and the agricultural sector are developed. Climatic conditions allow you to harvest several times a year.

The pricing policy of the region remains affordable, which contributed to the real estate crisis in 2007–2008. At that time, prices for residential and non-residential properties fell significantly, and at present, the value of real estate has not yet reached its historical maximum.


Is it worth investing in condos in Florida right now?

Potential investors are interested in the question of whether it makes sense to invest in US real estate right now, amid rising prices and an unclear situation with the pandemic. According to analysts, there are no reasons to postpone the purchase. The situation on the market is relatively stable, demand is growing. Therefore, the attractiveness of investment property in Florida for potential buyers remains at a high level.

We will help you find real estate in Florida

On our website, you can look through the current offers published by trusted real estate agencies in Florida. Our team will help you choose an ideal buy-to-live and by-to-let property. Get a real-time view of the Florida housing market. Our property database offers options for any budget.

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