Out-of-state buyers set Florida’s real estate market on fire. Now, they may be backing off
Pandemic homebuyers from out of state sent the Florida real estate market soaring out of reach for many local buyers. But there are early signs that the high-spending competition is starting to retreat back to the Northeast. That may give an opening to local buyers who have had to sit out the market for months. Sales of single-family houses and condos dropped sharply in the third quarter of 2021, in part due to fewer out-of-state buyers, according to a report from Related ISG Realty, a real estate group based in South Florida.[Source: South Florida Sun-Sentinel]
Florida home-building permits boom, but not so much in metro Orlando
Homebuilders are betting Florida’s growth over the past year wasn’t just a fluke of the pandemic. The state saw more metro areas with major increases in building permits for single-family houses than any other state, according to a new study. While the survey by Omnis Panels, a specialty building materials maker, shows strong growth in Central Florida, Orlando wasn’t in the top 50 metros, even as communities just outside the City Beautiful made the list. [Source: Orlando Sentinel]
Editorial: On insurance, it’s time for Florida to try something new
Florida’s state-run property insurer of last resort faces a crisis. What else is new? Florida has no helpful ideas for this crisis. What else is new? In fact, Florida has no helpful ideas for the wider crisis of rising property insurance rates by all companies. What else is new? Florida’s property insurance market has not been normal since 1992, when Hurricane Andrew tore through southern Miami-Dade County. Companies such as Allstate and State Farm, which had competed for business by cutting premiums, shed hundreds of thousands of policies. Since then, governors of both parties and state legislators have done favors for the insurance industry. [Source: South Florida Sun-Sentinel]
Florida TaxWatch examines how pandemic impacts housing in the Sunshine State
Florida TaxWatch (FTW) released “Beyond the Pandemic: Long-Term Changes and Challenges for Housing in Florida,” the sixth installment in the taxpayer research institute’s COVID-19 Legacy Series. The report explains the record price growth the housing market experienced in the past year and presents considerations for the long-term impact in Florida. [Source: Florida Daily]
Whether as a result of market conditions, evolving golfer preferences, or the financial realities of operating a golf course, golf courses in Florida regularly change hands. The sale of a golf course typically includes both real property and personal property. The buyer and seller are encouraged to engage legal counsel early in the process due to the potential consequences of exchanging preliminary communications which may constitute a binding contract. [Source: Shutts]
› How Zillow, other companies buy houses around Tampa Bay [Tampa Bay Times]
There’s a tech race underway to become the Amazon of real estate, where homes can be bought and sold with a few clicks rather than through the traditional, paperwork-intensive process. Some of that race is playing out in Tampa Bay, where so-called “iBuyers,” short for instant buyers, are buying homes, then quickly reselling them.
› Rise in rent and lease renewals as more people move to Southwest Florida [WFTX]
Housing experts say a rush for people moving to Florida has developers unable to keep up with the demand. This comes as the nation is seeing a rise in rent and people renewing their leases. The Florida Apartment Association (FAA) says over the past year, the city of Cape Coral added more than 650 new apartments, a number that actually outpaced the area’s five-year average.
› Could new Bay County housing developments harm the environment? Some residents say yes [Panama City News Herald]
More housing is coming to the area, but some residents are asking “at what cost?” During the Bay County Commission meeting Tuesday, where two housing development plans were approved, residents from those areas spoke to address their concerns. Residents spoke of negative effects to the environment, stormwater drainage issues and overall quality of life.
› FIU Business real estate conference brings networking, thought leadership to Miami’s 'hot' market [FIU News]
Newcomers have descended on South Florida, snapping up housing and commercial space at unprecedented speed. The build-to-rent market is on fire. Inventory is low, and land prices are sky-high. Yet within these “good times,” challenges remain for the real estate industry. Can affordable housing for workers be built in a market as pricey as Miami? What will happen to millions of square feet of mall space that lie vacant?