Americans are changing the way they are living and working. The two-year pandemic has made just about everyone adjust one or more areas of their lives – how they shop, socialize, and travel as well as mastering remote work and, often, remote learning. Homes have become more of a sanctuary or haven and it is causing a great migration in the United States, with Florida being the top destination.
Coldwell Banker’s March-June Move Meter data, which provides users a quick and easy way to compare their current city with any other city in the U.S., shows Florida was the number one destination state. One out of seven searches were for Florida. Sarasota was the top-searched city in Florida and ranked second in the country. Families located in New Jersey, California, New York, Illinois, Ohio and Massachusetts were the most likely to search in Florida. Independent rankings, such the one compiled annually by U.S. News & World Report, have also celebrated Sarasota as the best place to live in Florida as well as the best place to retire.
Our internal buyer’s report for the first half of 2022 supports this, with nearly half our Southwest Florida buyers coming from out-of-state and the top five states these buyers moved from included Illinois, New York, New Jersey, Massachusetts and Pennsylvania. Trends are showing the East Coast has outpriced many people and the draw of warmer weather, beaches and no state income tax or estate tax have added to the mix. Check out my June column for more detailed information and statistics on where new Florida home buyers are originating from in this real estate market.
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Home Front by Duff Rubin: Buyers begin to see some relief in Sarasota, Manatee counties
Sarasota is becoming the new, desirable alternative to the hectic pace of Miami. Developers are migrating to Sarasota as well, from places like New York and Miami. This is creating new construction designs with a New York or tropical influence. Sarasota is the new, trendy alternative to Miami and has surpassed Naples as the secondary market after Miami.
Matthew Day, managing broker of the Coldwell Banker Realty Downtown Sarasota office, has met with three different developers new to Sarasota from the New York and Miami regions. According to Day, in recent years many more buyers are coming from the Northeast because they see value in Sarasota compared to the Miami market and prefer the slower pace and smaller city. His office is currently representing six new condo building projects, most of which are in pre- or early construction. These include One Park, Peninsula Sarasota, SIX88, The Edge and The Strand.
The increase in downtown construction is a welcome sight in a market that has a high demand for condos. Additionally, with only a finite amount of beachfront space, non-beachfront home construction in Sarasota, the local market is also surging in all price points. MLS data shows new construction pending transactions for single family homes and condos/townhomes for June 2022 has increased nearly 400% year-over-year. These pending sales are awaiting completion so closings can take place.
With interest in the Sarasota region still at an all-time high, buyers will need to be ready to make quick decisions on resale properties or have a prolonged timeline for move-in with new construction. Although many developers are catching up with buyer demand for new inventory, often before a new construction purchase can be completed, a temporary living contingency plan will be needed prior to a buyer’s full-time move to Florida. A local real estate professional well-versed in the region can be an essential guide, whether opting for resale or new construction.
Duff Rubin is president of Coldwell Banker Realty in Florida.
