Unless you haven’t been watching the news or seeing the number cars with out of state license plates traveling our roads, let me tell you there has been a tremendous increase in the number of people who are now calling Florida “home” on a full time basis. As I’ve mentioned many times in our previous newsletters, last January we were hearing people saying it was the inclement weather and high taxes that had them strongly considering a move to Florida however, when Covid hit, it changed the market dynamics.No longer did people want to live in densely populated areas, commute via mass transit and work in the tight quarters of commercial office buildings. Employers found production levels didn’t decrease as anticipated and were now allowing their employees to work remotely. As a result instead of waiting for retirement to move to Florida, they were making the lifestyle change now, and for some cities, it has become a mass exodus!
Florida and Texas are two states seeing a tremendous influx of people looking to relocate on a permanent basis and with very low inventory levels the competition for existing homes has been fierce. In fact some of major builders such as Lennar have put a “sales hold” on some of their developments so construction can catch up with sales.
Recently we had three of our listings sell in one day, and well over full price. Our most recent listing had 28 confirmed showings within 12 hours and 15 offers, with the accepted high offer almost $80,000 over full list price….yes, you read it correctly! Agents were telling us of their frustrations in not having their offers accepted when bidding $20,000, $30,000, $40,000 and more over list price. Buyers who wanted to give some thought to the home they viewed before making an offer found themselves on the outside looking in as the property went pending shortly thereafter.
While this may seem reminiscent during the real estate boom in 2004-2006, it is a very different scenario. Sub-prime mortgages and other forms of loans were being approved for buyers who under normal circumstances would never have been able to qualify. Inventory levels were much higher and the speculation that baby boomers were headed to Florida for the next 20-30 years had everyone giddy the sky wasn’t going to fall. Appraiser’s couldn’t keep up with the increases and started giving valuations on properties that were called into question years later.
What you are seeing now are not only retirees, but those looking to make lifestyle changes prior to retirement, both vying for short supply of available properties. Unlike the market back in 2004-2006, this market is not being driven by investors and speculations. We are in a market where there is strong demand and short supply. With the cold weather now hitting the north, those that were contemplating a lifestyle change are acting with a sense of urgency, adding an additional strain to an already robust market. Sensing their opportunity may be slipping away we have seen an immense uptick in offers well above list price. What was a market characterized by gradual growth, we are now seeing the realization by some this may be their last opportunity for some time and are willing to pay a premium for it.
As always if you have any real estate questions, feel free to reach out garycardillo@wesellpg.com 941.916.0939
In our business we constantly hear from those looking to make the move to Florida, “I’ve had the big home, the fancy cars and membership to the country club, but I want to simplify things and enjoy then next chapter of my life. Isn’t it ironic how life goes full circle? We marvel at the inquisitiveness of a child, but in our later years we find enjoyment in many of the same things we did as children. However, while this year has been one full of challenges of one kind or another I recall something very profound a dear friend of mine shared with me about how adults and children perceive many of the same scenarios differently. His name is Bob DeStefano and he was at one time the longest tenured golf professional in the country and was recognized by the PGA for his contribution to junior golf and for the junior golf program he created at Gardiner’s Bay Country Club located on Shelter Island, New York. Bob said, “You know the difference between children and adults? Adults will come into the pro shop and talk about all the bad shots during their round, but children will always talk about the one good one they had.” I’ve often thought about Bob’s analogy and wondered how some children have coped with the events from this past year and what their thoughts were for the New Year. I thought who better than to reach out to a couple of families we know who have had to adjust to the changes brought on by the pandemic with young children.
Of course no interview with young children could end without asking if they had an opportunity to meet Santa. I had remarked a couple of times to Gail how sad I felt seeing Santa sitting by himself at a mall without the excitement of children all around. Olivia replied by saying she and Avra did get to meet Santa but unlike past years where they were able to sit on his lap, this year they were sitting behind plexiglass, but she added, “We still did get to tell him what we wanted.” Hailey, whose personality is bigger than her, said she and Lily haven’t had an opportunity to meet Santa yet, but I’m sure when she gets finished with him, he’ll be ready for a long winter’s nap!
The lessons I learned from these girls was that they seemed to take their challenges more in stride but had a greater compassion for others who weren’t coping quite as well. While they enjoyed getting out and seeing their classmates they were apart from for so long, they savored their life at home, and the loving environment their parents created. It was their hope for the New Year that others could enjoy the same where everyone could be happy and healthy. And that is our wish for you.
I couldn’t help but look back to this time of year as a kid growing up when we carved pumpkins and watched horror movies on Chiller Theater that left us so scared that every creak and sound we heard in our home had us diving under the covers somehow thinking we wouldn’t be seen by these creatures of the night. What Halloween would be complete without Frankenstein, The Wolfman, Dracula and a supporting cast of Ghouls, Mummies, Werewolfs, Ghosts, Witches and Vampires! After working ourselves into a terrified frenzy the thought of putting out the garbage that night was the last thing you wanted to hear your mom ask you to do. “Mom can’t it wait until morning, I really don’t want to be burned at the stake?”
No longer are people looking just to escape the harsh winter weather in the north, we are seeing people moving south as a quality of life change. Most of the people moving in are from high-taxed areas like New York, Boston, California, and Chicago, according to the New York Times. What makes Florida so appealing is residents pay no state income or estate tax and receive a homestead exemption of up to $50,000 on a primary resident and a 3% annual cap on home assessments.
During this time many discovered they could work remotely and with management seeing no drop off in productivity, employees as well as entrepreneurs started to relocate south to areas such as Florida and Texas. New contracts for single-family homes in Charlotte County were up 41% in August compared to this time last year. Single family homes are the “crème de la crème” vs condos and townhomes because most feel it is not only easier to social distance in a house, but weren’t quite ready to give up homeownership and downsize into a condominium.
Also, a booming housing market means more new homeowners – and a higher demand for new appliances such as refrigerators, dishwashers, washers and dryers. With more people staying at home and cooking, appliances are getting much more use requiring replacement, thus adding to manufacturers being backlogged to the end of the year. This pandemic has created a perfect storm for those looking to escape the high cost of urban living and unwittingly finding there are tax advantages and low mortgage rates to be enjoyed in areas with more desirable climates. According to the latest trends, many of Florida’s gulf coast towns and cities top the list as the choice of many seeking a better quality of life.
While most people would like to talk about themselves, Gary and Gail have always put their clients first, and their diverse backgrounds have provided their clients an unparalleled level of service and knowledge throughout the past years.