The real estate market across the country is experiencing unprecedented growth. One of the hottest markets in the United States is southwest Florida. Since November 2021, Southwest Florida has had 0.3-month stocks in Collier, Lee, and Charlotte counties, which is 80% less than we would have for a balanced market. It is not easy to find replacement elements due to buyer demand, high competition from institutional investors, the inability of builders to provide new inventory, and the reluctance of the seller, thus limiting new stocks for resale.
Huge demand and ambition
Whether it’s golf, boating, fishing, kayaking, or any other activities to enjoy the beautiful scenery of Southwest Florida Homes for Sale, we are home to those who want to find the best quality of everyday life. Last year, this trend only accelerated, as Florida was considered by many to be the closest analogy to “normal” at a very uncertain time.
As a result, the desire of people to stay here is much higher than before, constantly strong and so soon it will not leave. It is estimated that 850 people move to Florida every day for the next 5 years. While markets with this growth continue in cities in the Midwest and Northeast, Southwest Florida is now migrating populations and businesses from California, Texas, and the Pacific Northwest. Accessibility to Southwest Florida is aided by new non-stop flights from San Francisco, San Diego, and Seattle to Southwest Florida International Airport (RSW).
Covid effect
The global epidemic and massive shutdowns have made it impossible for people to travel abroad or take cruises, which has not only led many to pay more for homeownership, but Florida is looking for the “gateway” and intercepting heavy traffic in those states. . As a result, single-family homes have an extremely high demand for holiday rentals as buyers and institutional investors (who now account for 20% of all sales in most markets) who see revenue potential for other investment instruments, such as as the US Treasury Department. Refueled and the commercial real estate quickly became uncomfortable due to the massive shutdown.
Tax benefits
Let’s not forget the many tax benefits of living here in Florida, such as the fact that no state has an income tax (only 1 in 7 states), which means that social security retirement benefits, retirement income, and income from the IRA or 401 ( k) are exempt from tax. . There is no property or inheritance tax that would save families considerable money after handing in their loved ones. Bottom line, your retirement accounts will go much further and make them financially understandable to live in Florida.
Interest rate
In 15 separate events in 2022, we fell to a historic low of 2.67%. Although rates have risen slightly, they are still historically low and are among the many accelerators on the market today. With rising inflationary pressures, some fear a decline in mortgage bonds, which could adversely affect interest rates and lead to higher rates.
Exemption from estate tax
Early residents have the advantage of reduced taxable value, any tax burden on protection increases by 3% per year compared to 10% for owners outside households. In addition, under the “Save Our Homes” provision, any savings of up to $ 500,000 can be collected over time and transferred to a new home, which is considered.
Commercial market
With the increase in teleworking and concerns about employee health and well-being, many companies expect the “more hybrid type” model to move forward. Shared flexible spaces are expected to be an area of growth when we see some polarization between high-quality/adaptable buildings versus old / less flexible buildings. It is too early to say, but it is no secret that online shopping has forced downward pressure on brick-and-mortar retail space and hotels have also suffered.
According to the National Association of Realtors, Southwest Florida Homes for Sale ranked first in the United States commercial market in 2022, particularly Cape Coral and Fort Myers. It shows that investors feel comfortable moving here to Florida, which is a big boost for the local economy, helping to create more jobs.
New construction work
Since the bubble burst 12 years ago, homeowners have remained cautiously optimistic, leading to only half of the homes being built in the last decade, which has allowed us to lack new supplies. We have officially encountered an obstacle when our market is unable to keep pace with current demand rates, keeping upward pressure on prices. New construction is a direct source of new deliveries to our home and a good indicator of what their current trends are.
