Something unusual is happening in the Tampa Bay area, and realtors just can’t keep up:
Each and every day, roughly 1,000 people are moving into Florida from out of state.
It’s estimated that this influx will stay above 800 people/day well into the foreseeable future.
Builders can’t build houses fast enough. Realtors are struggling to connect a select few sellers with dozens of prospective buyers. And said buyers are getting so competitive that those who don’t buy a house on the spot may miss out on getting a second chance.
What’s behind Florida’s housing boom
Florida has always had a pretty strong real estate scene, but right now the market is truly on fire.
According to realtor Chris McLaughlin:
“Whatever it takes right now is what we’re doing with this market. Because there is such strong buyer demand and such limited inventory.”
Some buyers have resorted to paying well above sales price for their desired homes. Others have taken to snatching up homes as soon as they become available — sight unseen!
The stories get even zanier. McLaughlin says he had one potential buyer offer a seller a free pet python as a way to try to seal the deal. (The seller declined.)
Many of these prospective homebuyers are coming to Florida to break free from colder climates and harsher COVID-19 policies. These buyers are looking for that proverbial fresh start.
Jacqui Budrow, a former New Jersey resident who now lives happily in Florida, explains:
“New Jersey has been very constraining. Not just [with] COVID, but taxes are insane there and you don’t really get much value for that increase in taxes. So yeah, you feel more at home [here] and more included in the community as well.”
While buyers like Jacqui are happy, there’s a problem: there aren’t enough houses to go around. Mike Hickman of Hickman Homes said described the current housing shortage as “a challenging time.” It’s basically a perfect storm, he explains, with “a shortage of home sites, escalating cost of materials, and a shortage of manpower.”
Today’s precarious housing situation is also a matter of bad timing. Prior to its current boom, Floridian real estate was still recovering from the 2008 housing bubble.
Hickman said of today’s hot market:
“I think it’s going to be [going on for] a long time. Florida is the Sunshine State. In the interior of the state, prices are reasonable even still compared to the rest of the nation. I imagine it’s going to take a couple of years because the inventory just isn’t coming.”
In other words, it may take a while for supply to catch up to demand. And that means sellers should have an easy time finding motivated buyers for the foreseeable future.
Need help buying? We’re here
If you’re eager to find your own forever home in Florida but wary of the difficulty involved, let us help. We’ve been navigating Florida’s real estate market for decades… and we’ve seen it all.
We’ll line you up with the right sellers and the type of home you’re looking for. Schedule a free consultation today by clicking here or calling (321) 297-8960. We look forward to seeing how we can make your life easier!
To your future in Florida,
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