How Florida Homeowners are Selling Their Houses for Cash Faster Than the Rest of the Country
In today’s uncertain real estate market, an increasing number of buyers are purchasing homes with cash. The National Association of Realtors estimates that about 30 percent of U.S. home purchases are now done through cash transactions. This represents a significant increase since 2008, when the estimate sat at only 15 percent.
Homeowners in Florida are selling their homes for cash quickly and in large numbers. Some of these buyers are individuals from other countries who have never before qualified for a U.S. mortgage. Others are investors hoping to turn a profit on properties in currently-depressed markets. Florida, with its significant number of foreclosures in recent years, has been such a market.
Still other buyers are wealthy individuals for whom paying cash has always been an appealing option when purchasing property. There are also those who have taken the time to save the money required to purchase a home for cash.
Considering weather patterns across the country, it’s not hard to discern one of the primary reasons why Miami and South Florida’s real estate scene is so active. With COVID restrictions still in effect in many states with no clear end in sight, any area that offers ample opportunity for outdoor activities in a comfortable environment is worth paying a premium for right now. When one considers the fact that the average daily high in Miami over the winter months hovered around 76-degrees with mostly clear skies, the situation comes into even greater focus.
Florida’s real estate resurgence shows many signs of lasting as other popular areas such as Manhattan and San Francisco are mired in various struggles.
Examples of Florida’s super-charged real estate market are everywhere. Since June 2020, the market has performed at levels never before seen by realtors based in the Sunshine State, with a “reset in pricing” over 75-percent in some sub-markets for single-family homes. According to our analysis, buyers tend to be around 40 to 60 years old and involved in hedge funds, private equity and other areas of finance that generate substantial cash on hand.
Even the condo market is getting highly competitive due to the scarcity of single-family homes. This is particularly true for low-density boutique buildings where in-house amenities such as pools, gyms, spas and business and social lounges offer more opportunities for space and social distancing.
Get a Competitive Cash Offer for Your Florida Home
Florida has remained a hot seller’s market through 2020 and into 2021. Like some other parts of the country, it has enjoyed rising home values as buyer demand increases. The needs of a growing population combined with a historically low unemployment rate of 3.1-percent helped to reinforce underlying stability.
Despite the severe impact of COVID-19 on Florida’s economy, there is still exceptionally high buyer demand there for a few key reasons:
- Historically low interest rates (below three-percent, as of the date of our research).
- The brunt of the COVID recession has been borne by lower-income earners in industries like entertainment, tourism and hospitality. The buyer pool has not shrunk because the people hit the hardest were unlikely to be in the market for a home in 2021.
- With COVID making the work-from-home model commonplace, Florida is attracting a lot of out-of-state migrants from cold weather states in the north and Midwest, as well as from states with higher taxes like New York and California.
The Florida real estate market has grown by leaps and bounds since the Great Recession of 2008, and it doesn’t seem to be slowing despite economic uncertainty brought on by the COVID-19 pandemic. Florida homeowners have found themselves in the most desirable position of being able to sell their houses for cash quicker than many in the rest of the country. To receive a competitive cash offer from one of America’s leading home buyers, contact Swift Homes today.