The real estate market has been heating up across the country. People are going to places as pandemic restrictions end, and people return to work. One of the places where it’s really hot is Florida. People are flocking to Florida and some are calling it the hottest market in the country. All parts from Pensacola to Palm Beach, to Tampa Bay are flourishing. Why are home buyers rushing to get home loans in Florida for the house of their dreams? Why are home buyers rushing to fill out mortgage applications with their trusted mortgage broker in the Sunshine State? The team at Peoples Choice Mortgage is here to help explain why the Florida real estate market is so hot. Also, we want to talk about what home buyers should expect as they work with their team to buy a house in a competitive market. 

Why are Home Buyers Flocking to Florida? 

Some people may be confused about why Florida is one of the hottest markets. Why would home buyers flock to Florida when there are so many other great places to live? The first reason is the pandemic. During the pandemic, Florida had an “open for business” model. Florida’s approach was different from other parts of the country, especially places in the Northeast, like Boston or New York. This was also why places like Disney World opened a lot quicker than other amusement parks in the west. Workers in the entertainment and service industries were especially hard hit by the pandemic and Florida seemed like a refuge. Florida prides itself on the idea that there will always be jobs for job hunters, which is an attractive case for home buyers. Homebuyers want to feel secure, so they move to Florida with fewer regulations and shutdowns for their jobs. 

Another reason for this migration is due to snowbirds and retirees. Snowbirds are people who migrate to warmer parts of the country, such as Florida. Although the COVID-19 infections in Florida have been rising, the snowbird migration is still in full swing. People want to feel secure and safe from the cold, so they move to Florida. Snowbirds typically travel in October and go back to their colder state in April, but many will stay for as long as May and even later if they enjoy the place. Snowbirds are what makes Florida unique and what makes the real estate market hot. However, many snowbirds are choosing to forgo ever returning to the cold are now taking permanent residence in Florida. Home buyers who want to leave the snow for good are adding even more buying pressure to an already competitive real estate market. 

For years Florida has also been a haven for tax refugees. Tax refugees are people who are “escaping” the high taxes of places like California and New York by moving. They typically move into places like Florida due to their conservative fiscal policies. Lower taxes are very enticing for people moving into Florida. Houses are also generally cheaper there. You can buy a bigger house in Florida compared to other states but will pay less for the Florida home. All of this makes Florida an ideal place to move.

What Florida Home Buyers Should Expect

Florida home buyers should be prepared for the real estate market and what it offers. The first thing that people should be aware of is that the demand in Florida is very high. The South Florida real estate market, in particular, has been struggling to keep up with the demand. There are so many different people moving into Florida for all the reasons discussed above. The higher demand should cause some difficulty if you are looking for a house on your own. 

Another thing to expect is rising home prices. Even though Florida is cheaper than other states, home buyers should still expect some rising home prices. Rent is also rising in Florida. Miami has a very strong demand that keeps Florida rent rising. Renters are now paying above leasing trends in four Florida markets. Florida’s high demand is also a part of the reason. If demand is rising, prices have to keep up with that demand. The studies suggest that Florida home buyers should expect more rising rent and home prices as the months go on. 

Final Thoughts

Florida is one of the hottest markets right now. Snowbirds, retirees, tax refugees, and more come to Florida because it's sunny and cheaper. However, this does not mean Florida will stay sunny and cheap forever. Florida’s market has a lot of demand that requires more houses to keep up with the market. Homebuyers should also expect rising rent and rising home prices. Florida is popular, and the taxes are less heavy, so many people will go to Florida to compete for their dream home. 

If you live in Florida and have been considering buying a house, let our professional mortgage brokers work with you to find the perfect home loan. Our team is here to make a move easier as we help you navigate through a market that is getting more difficult. If you live in another state but have been considering moving to Florida, contact us. We can give you a complimentary mortgage qualifier to see what type of home you will be able to buy in the Sunshine State.