In the last two years, the real estate market has changed dramatically. Real estate companies across the globe have adapted virtual selling to fit the new normal. With people working from home, many are migrating away from major cities to more affordable and less crowded neighborhoods.
While the pandemic has affected the global economy, the uptick in real estate sales has continued in many parts of the Nation, including South Florida. What is the future of South Florida’s real estate market? The Amazon Group discusses some of the current trends and the future of real estate in South Florida.
According to The Amazon Group, the volatile and ever-changing nature of real estate makes it difficult to predict the future. However, based on the current trends, the boom in South Florida’s real estate market is likely to persist. “We are currently in a seller’s market and there is low inventory compared to the high demand,” notes The Amazon Group. This means due to the limited inventory, buyers have more competition and sellers are receiving multiple offers.
The Amazon Group further explains that since the onset of COVID-19, The Amazon Group has witnessed an increase in the number of home buyers looking for single-family housing. They say this is a trend from low-interest mortgage rates and COVID-19.
Millennials make up a high percentage of the global population today. With many moving from their parent’s homes and others looking to start their own family, Millennials are looking for affordable housing. Living space has become a high priority for buyers due to COVID-19 and the ability to work remotely. The Amazon Group explains that buyers prefer single-family housing to traditional condos because it’s more spacious, providing buyers room to comfortably carry out their day-to-day activities.
As stated by The Amazon Group, another cause for the current property boom in South Florida is the lower taxes and desirable winter weather. The last two years have been challenging, and many have lost their jobs. With low property taxes and no state income tax, buying a property can become more affordable.
Although taxes and weather were trending before COVID-19, The Amazon Group says these trends have greatly accelerated due to the pandemic. Carol Amazon, one of the founders of The Amazon Group, was working in New York City, NY before she moved her real estate business to Florida. She states, that as a transplant, many are looking for warmer weather, especially now that people are working remotely. Unlike in previous markets where buyers were confined to purchase homes close to work. People now have more freedom when picking the location of their homes.
COVID-19 has dramatically changed every aspect of our lives. While it’s not certain whether the work-from-home culture will continue into 2022. The Amazon Group believes some of the changes caused by COVID-19 are permanent. The group notes that more changes are likely to occur as real estate is constantly evolving.