Home Front by Duff Rubin: More buyers from northeast, California coming to Southwest Florida
As we approach the summer real estate market in Sarasota, we are witnessing both an increase in demand for homes and a shift in the demographics of out-of-state-buyers.
Where are buyers coming from? We examined all Coldwell Banker Realty residential property transactions in Southwest Florida (including Charlotte, Collier, Lee, Manatee and Sarasota counties) between Jan. 1 and April 30, 2022, in which buyers reported their place of origin. Florida buyers themselves purchased the most homes in the southwest of the state during this period, approximately 50% of all transactions. The Top 10 locations from which out-of-state buyers arrived were, in order, New York and Illinois (a tie), Michigan, New Jersey, Massachusetts, Pennsylvania, Ohio, California, and Wisconsin and Virginia (a tie).
Nearly all foreign buyers were from Canada during the first four months of 2022, a trend we also saw throughout 2021. According to the 2022 Coldwell Banker Global Luxury Report, the five U.S. states that attracted the greatest number of foreign homebuyers from April 2020 to March 2021 were California, Arizona, Texas, Florida and New Jersey.
Midwest U.S. buyers historically favor southwest Florida. We are seeing come changes in migration, however. As noted recently by Roger Pettingell, the No. 1 individual Coldwell Banker Realty agent in Florida, northeast buyers that typically focus on the Atlantic coast of Florida are now buying in greater numbers on the Gulf Coast. California buyers have also been seeking a sunny lifestyle in Florida that comes at a lower cost than in their home state.
Southwest Florida and the Sarasota area’s beautiful weather, recreational opportunities and dynamic culture are a huge draw, coupled with Florida’s tax benefits. As Pettingell also pointed out, buyers priced out of Miami are finding better values in the Sarasota area.
As we’ve seen nationwide, COVID-19 caused a shift in homebuyer mentality. Many chose expanded living space and outdoor recreational options. They moved up their plans to achieve the lifestyle they desired. Some retired early. Others found that the option to telecommute meant they could move wherever they wished. Coastal Florida is among the most sought-after locales in the nation, and the increase in demand has flowed from the east coast to the west coast of the state.
An overview of the state real estate market in April, compiled by Florida Realtors, illustrates the surge in demand we are experiencing. The average sale price for a single-family home was $597,718 in April, a 12.8% increase over $530,083 a year prior. Contracts are reached in a median time of 8 days, a 27.3% dip from 11 days this time one year ago. We remain at 1.1 months of inventory of available houses, the same as in April 2021. Six months of inventory is considered a balanced market.
Meanwhile, reported Florida Realtors, townhomes and condos sold for an average price of $465,656 in April 2022, a 16.4% increase over $400,027 in April 2021. Contracts were reached in a median time of 10 days, an astounding 58.3% decrease over 24 days in April 2021. Inventory was down 43.5%, at 1.3 months in April compared to 2.3 months a year before.
According to the 2022 Coldwell Banker Global Luxury Report, builders have responded to overwhelming demand for new luxury homes in Florida with single-family and condominium developments breaking ground on both coasts along the Gulf of Mexico and the Atlantic Ocean. In spite of supply chain delays in construction materials, builders are working to meet this demand in the Sarasota area, with several downtown luxury townhome and condominium projects leading the way.
For example, Peninsula Sarasota, listed by Georgia Salaverri and Steven Windsor of Coldwell Banker Realty, offers 23 boutique residences in two mid-rise buildings at Golden Gate Point, showcasing beautiful views of Sarasota Bay and the downtown skyline. In residential construction, a new bayfront estate is under development at 2043 Alameda Ave. N. in Sarasota, listed for $25 million by Rinat Sikdar of Coldwell Banker Realty. It is designed by Miami-based architectural firm Choeff Levy Fischman, marking their debut in the Sarasota area and highlighting how east coast builders are following their traditional clientele as they migrate to the west coast of Florida.
The expansion of out-of-state buyers into Southwest Florida underlines how important it is to enlist a real estate agent who possesses intricate, up-to-the-minute knowledge of the local market, in addition to understanding what’s happening in markets such as New York City, Los Angeles and St. Louis. When selling a home, it pays to know where to most effectively market your listing. Homebuyers face greater demand for homes in the Sarasota area, but an expert real estate agent with boots on the ground – whether you’re local or buying from afar – offers a major competitive advantage.
Duff Rubin is president of Coldwell Banker Realty in Florida.
This article originally appeared on Sarasota Herald-Tribune: Duff Rubin: Demographics of buyers from outside the state are changing
