Insights is our quarterly market report that aims to inform you about the market in your area while showcasing some of our most notable active and sold listings. The market is moving, so, let's jump right into it.
To sum up Florida’s real estate market for the first half of 2021, one word comes to mind: unexpected. Florida has long enjoyed an influx of residents migrating from across the country, and around the world, to call the Sunshine State home. With remote work becoming a permanent option, over 900 people per day are moving to Florida, according to the Palm Beach County Business Development Board. Reasons for this explosive growth in Florida can point to fair weather, a business-friendly climate, and the lack of state income and estate tax.
Low-interest rates continue to fuel affordability and drive high absorption rates for housing. Many listing services reveal less than a month’s supply of inventory is available across a wide range of prices. With increased purchase power for home buyers, along with Florida’s affordability compared to other nationwide markets, demand continues to outpace supply. Many existing homeowners are sitting on the sidelines, reluctant to sell due to the competitive bidding process for purchase. Millennials continue to dominate the home buyers’ market, according to the 2021 National Association of Realtors Trends Report.
Challenges with supply chain for building materials and domestic appliances, combined with labor issues during the pandemic, are beginning to resolve. This creates opportunities for both homebuilders and consumers seeking to purchase new construction. Florida contains many new frontiers for building homes. The ability to establish communities where land is affordable offers accessibility for buyers, many making purchase offers with cash in hand. For an industry that has been underbuilding since the 2008 financial crisis, residential home construction increased dramatically during the first half of 2021, a trend that should continue into the coming months.
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